Professional Employment
Outsourcing

A PEO company is a third party company that legally and administratively employs your staff and fulfils the legal and regulatory obligations relating to immigration, employment and payroll.

In essence, the company is the employer fo record of your employee, but has no supervisory or management role in your employee’s activity. The original employer maintains the substantive employment relationship, making all decisions regarding compensation, job duties, plans and termination.

In detail the PEO company:

Handles the employee’s visa and work permit applications, either directly or by working with a specialist immigration firm.
Registers the employment contract with the local authorities, allowing for a compliant situation with the authorities.
Pay the income tax and social security contributions due on the basis of your employee’s remuneration.
Ensures compliance with the host country’s labour laws relating to local contracts and worker protection.

The solution includes two main services:

The “EMPLOYER of RECORD” (EoR) is a third party contractor responsible for the management of the employment contract and all formalities related to it.
The “PROFESSIONAL IMMIGRATION SERVICE” (PIS) is a full range of services for expatriate professionals and employees who are going to work abroad. Services include visa, family visa, work permit and residence applications.

This solution is equally effective for local residents and expatriates as it is in full compliance with the laws of the host country. There is no reason to risk violating labour, tax and employment regulations when there is a portage solution available in almost every country.

Hiring and employing a person in a country where you do not have a legal entity.
Hiring staff in a foreign country where costs are prohibitive.
Hiring staff in a country where the practice of ‘remote payroll’ (done from the home country) is rarely allowed, especially for long-term assignments.
Sending an employee to develop a new market in a country where you do not have a legal entity.
Sending employees on assignment to a country where you do not have a legal entity.

The reasons for using an PEO solution are mainly to overcome the regulatory and financial obstacles encountered when hiring employees in a foreign country. It is the perfect solution to ensure a legally compliant situation for your employees (local or foreign) and is certainly the most reliable and cost effective solution to deploy employees abroad quickly.

The PEO is becoming an integral part of the international expansion plan as companies have to adapt to the new work culture (international outsourcing, home working,).

The future of the PEO is assured, as a majority of countries are changing national immigration and employment regulations to prevent abuse and loss of tax revenue. Companies need to equip themselves with new means of action to overcome this challenge of international expansion. PEO is therefore becoming one of the key strategies in managing expatriate and local worker contracts.

At Mobility HR, there is no minimum, it can be used with one employee.

The Mobility HR solution always takes care of the immigration files of an employee with an PEO contract at Mobility HR.

Mobility HR can sponsor work permits in over 150 countries.

Under an PEO solution, Mobility HR must be the employer of record and manage the employee’s contract and payroll in the host country to obtain a work permit.

However, if you have your own structure in the host country and only want assistance with immigration procedures, this service is possible in a non-PEO framework.

We try to minimise the use of a short-term business visa as all employees will be issued with a valid work permit. This avoids any complications with the authorities around the overuse of business visas for multiple stays in the country.

In some countries, it is sometimes necessary to enter the country on a business visa if the presence of the applicant is required to initiate the work permit application from the host country.

In some cases, it is even possible for an employee to start working in the host country from the moment the work permit application is submitted.

We act as the official local employer in the host country through our local entities.

In almost all cases, a local employment contract is required to meet the employment obligations and labour laws of the host country.

We draft an employment contract in accordance with the country’s regulations, including, where possible, any additional conditions you may wish to include.

We can also assist with the drafting of assignment letters, suspension of employment contracts, etc.

The employee will be covered by a national insurance scheme if this is compulsory, through social security contributions, as well as by any other insurance related to the employment contract required by the host country’s legislation, such as workmen’s compensation or health insurance.

Yes, we can help clients provide their employees with a full range of supplementary or private insurance (travel, health, repatriation, family coverage, etc.).

Although the staff is legally employed through our company, we are only the employer of record . The day-to-day management of the employees’ working hours, methods and projects is always carried out by the client, who remains the principal.

The client remains primarily responsible for the activity, conduct and situation of the employee in the host country.

Once the employee has signed the contract of employment, we, as the employer of record, are directly responsible for the employee, primarily with respect to immigration, tax or labour issues related to the contract.

We inform our clients of the legal requirements of the host country, such as working time restrictions, annual leave entitlements, etc.

Leave requests are managed and controlled by our clients as principals and forwarded to us for inclusion in the payroll.

We inform our clients of any changes affecting employees in the host country of the expected effective date, the impact on the existing engagement (if any) and the options available to mitigate the impact.

Mobility HR invoices monthly on the basis of the purchase order .

The purchase order is based on an offer that includes the salary simulation, the salary costs and the tariff conditions of our services.

Invoices are issued in Euro, USD or Sterling.
Information must be confirmed by the last day of the month.
– Invoices are sent on the 15th of the month (M-1)
– Invoices must be paid by the 20th of the month (M)
– Salaries are paid by the last day of the month, but this varies from country to country.

Mobility HR provides payslips from the host country in accordance with its legal requirements.

In most cases we have to pay employees in the local currency of the country and the salary has to be specified in local currency in the employment contract. If possible, the employee will be paid in the currency of his/her choice, taking into account the exchange rates and bank charges involved.

Mobility HR can process salary payments outside the normal payroll cycle, except in certain countries.

Mobility HR can pay salaries in a foreign country if the labour law of the host country allows it.

At Mobility HR, we manage employer, employee and tax charges in accordance with host country requirements. Employee income tax and social security are deducted (withheld) from gross salary in the monthly payroll process and remitted to local authorities as required. These deductions are declared on the employees’ payslips.

In countries where the employee is responsible for his or her own tax returns, we help employees calculate their taxes and submit their returns to the authorities.

We review the expenses and check whether they are taxable or not according to the tax regulations of the host country.

Non-taxable expenses are processed and reimbursed net of tax or charges.

Taxable” expenses must be “added” to the salary to be treated as part of the payroll and reimbursed after deduction of taxes and charges.

We recommend that expenses are reimbursed through our PEO solution but this is not mandatory in all countries.

If you manage the reimbursement of expenses to your employees yourself, therefore we will not be responsible for their proper management and compliance.