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Employment Solution China 2019-03-20T21:48:34+00:00

What is Professional Employment Organization?

Professional Employment Organization (PEO) is the act of outsourcing the employer-employee relationship to a third party. It is used notably in cases of hiring abroad because a non-Chinese company cannot legally recruit or provide a visa for an employee in China. The employer/employee relationship therefore becomes one of employer – intermediary portage company – employee:

  • The employee, who carries out services for the client company;
  • The client company, to whom the employee brings their expertise on a project/projects;
  • The Professional Employment Organization company, who invoices the client company and pays the employee a salary.

To define the terms of the relationship between the different parties, the Professional Employment Organization company signs a work contract with the employee, as well as a service provision contract with the client company.

Our Professional Employment Organization service

INS offers a complete range of administrative and legal support services in collaboration with local professionals to create and develop our clients’ activities in China.

Our solutions have been devised to allow our clients to save time on employee administration procedures, and to focus their resources on the core of their business. We offer support in:

  • The establishment of a payment structure for the employee;
  • Consultancy on complicated negotiations regarding local staff contracts;
  • Administrative procedure management, including contract renewals or terminations.

 

Are you looking to develop your activity in China? We accompany and support you in reaching your objectives using our Professional Employment Organization service. Present in China since 2006, hundreds of professionals and companies have already benefited from our experience, knowledge of Chinese culture and expertise.

What does Employment Solution include?

How to Proceed

1

HIRE

a Representative

2

DEFINE

Mission & Contract

3

SIGN

the Contract

START NOW
4

ON-BOARD

a Team Member

5

DEVELOP

your Business

Post-Employment Responsibilities

China Market Entry Methods Comparison

PEO

Risk

Low

Management Requirement

None

Cost

Low

Setup Duration

1 – 2 months

Company Formation

Risk

High

Management Requirements

Essential

Cost

High (licenses, capital registered, etc)

Setup Duration

6 – 12 months

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Frequently Asked Questions

Having a local entity is not required, as employment services are already using a compliant local “Employer of Record” company.

Yes, employment solution is possible for both local national and expatriate staff.

Staff can be home-based depending on their scope of activity, while the employer must always be aware of their residential address and direct contact information.

Staff can be employed in any city in order to have their employment status abiding by the local labor regulations.

Staff already on-site can be hired in record time depending on their actual professional situation, while a new immigration procedure lasts approximately 1-month prior arrival to the work location.

The employer of record is responsible for both the hiring and termination procedures, while informing the client of all costs involved at all time.

The standard procedure requires the employer of record to respect a minimum 1-month notice period prior termination, while the economic compensation is in general 1-month salary per year worked.

The employer of record is responsible at all time of all payroll compliance and necessary tax declarations to the local government authorities.

The employer of record is legally liable during all the staff employment duration.

Yes, your HR will keep it ‘inactive’ while your Employer of Record will provide you a local labor contract.

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