Everything you should know about the EOR in UAE



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Contacting an EOR in UAE could be the best decision for your business if you’re facing troubles with some of your tasks. Many companies have to deal with several aspects that are difficult to overcome if they don’t have the help they need. For this reason, it’s helpful to have experts by your side.

In this article, you’re going to learn everything you need to know about what an UAE Employer of Record can do for your business. Additionally, you’re going to find out why it’s good to have a partner that can help you relieve some burden. Let’s observe:

  • Everything you should know about the EOR in UAE
  • What is an EOR?
  • Why should you use EOR services?
  • What is an International EOR?
  • Is there a difference between EOR and PEO services?
  • What are the advantages of using EOR services?
  • Why is Connect Resources your best option for EOR services?

1. Everything you should know about the EOR in UAE

Businesses tend to face challenges when it comes to handling their human resource operations. One good solution for this matter is using EOR services to handle all the difficulties that you may face in your HR department.

Perhaps you’ve considered contacting an employer of record, but you don’t know if it’s going to be the best decision. For this reason, you have to learn more about what these agencies do and how they can improve your operations.

Whether you’re looking for a global employer of record because you’re planning an expansion, or you just need some help to manage your employees, you have to learn why this service could be the best for your business.

1.1 Why should you learn about EOR services?

Knowing about EOR in UAE will help you understand why so many businesses nowadays are opting for this solution. Why should you understand what EOR do? Let’s observe:

  • You’ll determine which service could be the best for you
  • It will help you know the benefits you may receive
  • You’ll be more informed to choose between an EOR and a PEO
  • It’s possible to make better decisions that will improve your operations

Keep in mind that when you decide to use EOR services, you have to talk with the agency to define the scope. In this case, the service level agreements are necessary to determine the responsibility of both the company and the service provider.

Learn more about the service level agreement and why it’s necessary for your partnership.

2. What is an EOR?


When we talk about EOR in UAE we’re referring to an employer of record. These are companies or organizations that can carry out a specific business function for you, and are legally responsible of several operations done by human resources.

What are some of the aspects dealt by EORs? Let’s observe:

  • Taxes
  • Insurance
  • Benefits
  • Payments
  • Visa processing
  • Sponsorship applications

If a company decides to use an EOR, the EOR becomes the employer of the company’s employees. It means that it’s an outsourced service done to help companies to stay in compliance with the law. But, don’t worry, you still maintain a certain control over your operations.

It’s important to note that an EOR can help a company also with internationalization. It’s a great tool for those businesses that are looking to expand their horizons to new markets. So, f you’re planning on opening an office in Dubai, an EOR could be your best solution.

2.1 Why do companies hire EOR services?

Companies decide to contact an EOR in Dubai for several reasons, which are some of the following:

  • Keep the business in compliance with the law
  • Decrease complications with HR related functions
  • Get access to a new market
  • Manage payroll for international employees

Most companies hire EOR services to outsource a specific business function like payroll. The best part is that there are many companies that provide this service. If you’re looking for an agency that helps you manage your payments and taxes, you have to determine which one is the best for you.

Learn more about the agencies that can help you with payroll processing.

2.2 What is the relationship with an EOR and liabilities?

One of the main benefits of choosing an EOR service is that the agency takes on all the liabilities and responsibilities related with any issue that may arise in terms of employment.

This is a great relief for companies that opt for EOR services since the agency can deal with all of these complex matters. Let’s observe some of the liabilities that the EOR is responsible for:

  • Administrative operations
  • Employee benefits
  • Payroll
  • Record compliance

3. Why should you use EOR services?


Some companies might not want to choose an EOR in UAE because they’re afraid they’re going to lose control over their business. But this isn’t the case since the EOR only takes the liabilities, while leaving some control to the company.

If you’re still unsure about why you should contact an employee of record, then you need to know the benefits it may bring to your business.

3.1 Better time management

When you partner with an EOR, you don’t have to deal with complicated issues anymore, which leave you more time to focus on your core activities. Therefore, it’s an opportunity to have better time management. So, you can invest all of your efforts and resources in managing your business more efficiently.

Having an ally like Connect Resources for your recruitment could save you a lot of time and efforts, and at the same time it guarantees that you’re going to receive the best candidates for your business.

Learn more about the Recruitment in Dubai service offered by Connect Resources.

3.2 Increased saving

When you’re dealing with too much at the same time, you may lose concentration on the company’s main activities, and this in turn can affect your earnings.

For this reason, partnering with an EOR in Dubai can benefit you since they will take that burden from you. It means that you can dedicate your time to your main goals, and decide how to increase revenue of your business.

Additionally, you’ll see immediate effects in terms of cost structure since the agency will help you restructure your cost dynamics.

Why can you increase saving with an EOR? Let’s observe:

  • You get an increase in marginal expenses
  • Your cash flow gets improved
  • The EOR can help you to offer better benefits to your employees at a better price adapted to your budget

3.3 Comprehensive service

Deciding to partner with an EOR platform not only guarantees an improvement in some of your tasks, but you also receive a lot of benefits in many other areas, like HR operations, problem solving, overall compensation, and more.

When you decide to use EOR services, you can obtain a lot of benefits that can be great for you in the future. In the case of a business expansion, you can count on with the international EOR to hire international employees for your branch.

Learn more about the strategies for hiring employees abroad for your business expansion.

4. What is an International EOR?


Businesses that are planning an expansion may decide to contact an International EOR in UAE, also known as global employer of record. These agencies focus on offering the same services but around the globe.

How can an EOR help you in an international scenario? Let’s observe:

  • Compliance with regulations regarding benefits and taxes
  • Understanding the complexities of the expansion
  • Hiring staff for your new branch
  • Enter new markets
  • Sponsor work visas

Choosing an outsourcing agency to carry out some of your business functions could be the best decision you can make for your business. However, you have to choose the right one if you want to receive excellent results.

Learn more about the advantage of selecting the best outsourcing agency.

5. Is there a difference between EOR and PEO services?

One of the common mistakes people make is that they confuse the EOR in UAE with a PEO. Although the services may seem familiar, there are important differences that you have to know.

5.1 Employer of Record vs PEO

There are four factors that differentiate an EOR from a PEO. Let’s observe:

  • Liability: the EOR assumes the liability load from the client, while the PEO don’t.
  • Compliance: the EOR is involved in many compliance concerns as taxes and benefits, but the PEOs don’t provide this service.
  • Insurance: the EORs cover the employees’ insurance in their policies, but with a PEO, the client has to pay for it.
  • Business registration: PEOs don’t carry out business registrations, while the EORs are better for expansions since they’re registered at the locations where they work.

Knowing the difference between the services provided by EOR and PEO platforms is essential to define which service you’re going to hire. If you’d like to understand more about each service provider, you have to continue reading.

Learn more about why PEO services are different from EOR services.

6. What are the advantages of using EOR services?

If you’ve considered contacting an EOR in UAE, you have to know the advantages that this type of partnership gives to your business.

6.1 Reduced risk

Since the EOR becomes the employer of your employees, you see a considerable decrease in the risks of having personnel at your charge. The EOR takes almost completely the liabilities and you don’t have to worry about that.

Once an EOR manages some of your business functions, you get to reduce the risk of breaching any regulation. It’s a great service to receive particularly in areas like payroll, where you need to stay in compliance while you make the payments for your workforce.

Learn more about the Payroll service offered by Connect Resources.

6.2 Compliance

When you decide to open a branch in a new place, you have to stay in compliance with international regulations. With an EOR, you receive a comprehensive service to deal with many compliance concerns.

You won’t have any more headaches about taxes, benefits, payments and others since the EOR will take care of everything.

6.3 Business registration

One of the main reasons to use EOR services is to help your business with international expansion. If you want to do business in Dubai, you don’t have to register your company.

You can contact an EOR like Connect Resources, and you can enter in the UAE market without having a company, as we’re registered here since we operate in this place.

However, with a PEO you won’t have it as easy, so an EOR may be the perfect solution. You just have to focus on doing business and the EOR will handle everything else for you. Get your business on the road to success globally.

Choosing an EOR platform to receive any type of service is a crucial decision. You have to understand everything that is involved in the selection process, so you can know which factors you have to evaluate before making a decision.

Learn more about what you should and shouldn’t do when selecting an EOR service provider.

7. Why is Connect Resources your best option for EOR services?

Connect Resources

Once you know everything an EOR can do for your business, you may be wondering how you can take advantage of this service. With Connect Resources you’re going to receive the best assistance to handle all of your HR needs.

We’re one of the top-leading agencies in the UAE, and we specialize in helping companies in a variety of industries to achieve their internationalization goals. We have a team of experts readily available to assist you and give you a service adapted to your specific needs.

Would you like to contact Connect Resources for HR outsourcing services? You can call at +971 433 166 88 or send an email to contact@connectresources.ae, and you’ll talk to one of their representatives that will gladly answer all of your questions.

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