Labour laws vary significantly across countries, and understanding these differences is crucial when hiring internationally. For example, Brazil has strict labour protections under the CLT, including mandatory severance pay and a 13th-month salary. In Mexico, companies must carefully classify contractors and provide full-time employees with social security and profit-sharing.
EORs help simplify this process by ensuring compliance with foundational labour requirements across countries. Here's how they support businesses:
- Employment contracts: Drafting locally compliant contracts covering job scope, compensation, working hours, and termination terms.
- Tax compliance: Managing tax withholdings and filings according to each country’s tax laws.
- Benefits administration: Providing and managing statutory benefits like health insurance, pensions, and paid time off.
- Working hours & overtime: Ensuring adherence to local limits on work hours and rules around overtime pay.
- Termination procedures: Handling notice periods, severance, and other exit requirements legally.
- Employee classification: Navigating local definitions of employees vs. contractors to avoid misclassification risks
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