With low startup costs for new businesses, a prime location near some of the strongest Asian markets, and a solid infrastructure in place, Thailand is an attractive option as a location to expand your business. However, understanding the complex labor laws and regulations and remaining compliant with all relevant rules can be a daunting task to a business that is new to the area.
What Is a PEO?
A PEO is a Professional Employer Organization, which is a company that provides human resources and payroll outsourcing services to other businesses. You hire staff through the PEO and the PEO is responsible for various services, such as employee benefits administration, payroll and compliance.
You maintain day-to-day control over your staff.
The PEO model provides a perfect blend of flexibility and control. You get to pass off the cumbersome liability concerns of an employer while being able to maintain your high standards of excellence by having direct access and control of your staff.
Why Use a Thailand PEO
The reasons to use a Thailand PEO are just as unique as the types of businesses that can benefit from this model. Common reasons businesses use PEOs include the fact that they want to:
- structure employment agreements that are compliant with Thai law
- enter the market faster
- delegate recruiting services to a local expert
- save time and money
- ensure compliance with local labor laws
- offer more enticing benefits packages
These reasons are explained in further detail below.
Compliant Employment Agreements
PEOs are legal entities that operate in the country of your expansion and have licenses to employ staff on behalf of foreign companies. PEO staff are familiar with national and local labor laws and submit employment agreements to local labor organizations for approval.
A Thailand PEO also uses best practices that are based on years of experience in the country and industry. The agreements they put in place will protect your interests in the country of operations.
Faster Market Entry
Because PEOs are already established and you do not have to go through the cumbersome process of incorporating your business, staffing is much simpler. You merely need to approve the employment of select individuals and they can be on the ground representing your business within a matter of days, not weeks or months like with other options.
This allows you to enter the market faster and take advantage of new opportunities in lightning fast speed. You can also use the PEO model if you are in the process of incorporating your business but do not want to wait for approval before launching your new campaign.
As a foreign business, you may not be familiar with the local or international talent pool. You might not be aware of the most influential platforms or the methods that can engage the most qualified individuals for the job. PEOs offer effective recruitment options that quickly identify the most qualified candidates so that you can rest assured your new staff is ready to meet the demanding needs of your expanding business.
Time and Money Savings
Using a PEO saves time and money in a number of ways. As PEOs are familiar with local labor and employment laws, you do not have to take time to try to study, learn, and abide by these regulations. We will simply mold your staff into our larger platform so that you are compliant with relevant regulations. We hire the employees on your behalf, and you focus on your core business and competencies.
We handle the administrative responsibilities of your business, including payroll, human resources, and benefits administration. You do not have to hire separate staff for these functions, so you can reduce your overhead costs by using a PEO. You can also avoid costly mistakes or penalties due to your unfamiliarity with the Thai legal system. As the official employer of record, we are responsible for all insurance and tax responsibilities.
When you work with a recognized PEO, your business is immediately perceived as more credible. You also have a direct line of contact for advice and guidance by professionals who can ensure you remain compliant with Thai laws and regulations. This allows you to reduce risk.
Attractive Benefit Packages
Working with a PEO may allow you to have access to more attractive – and more cost-effective – benefit packages because of the larger number of employees within the PEO’s umbrella company.
Comprehensive PEO Services Should Meet the Needs of Your Business
A good Thailand PEO will offer comprehensive services to ensure all areas of employment are covered in the country of operations:
- Setup of employee payroll
- Payroll processing
- Calculation of income, social insurance contributions, and other deductions
- Preparation of reports
- Preparation of annual tax declarations
- Distribution of taxes to the proper tax authorities
- Management of expenses
- Benefits management
- Leave and holiday pay management
- Addition of new employees to Thai social insurance systems
- Communication with labor and tax authorities upon termination
- Execution of compliant Thai employment agreements
- Recommendations on contract terms
- Review of letters to employees
- Management of employee termination
- Assistance with the employee onboarding process
- Ongoing HR support
- Identification of qualified candidates in record time
- Customized recruitment strategy
- Management of candidate communications and set up of interviews
- Advice on the final hiring decision
Why use New Horizons Global Partners as your Thailand PEO?
New Horizons is Asia’s leading PEO. For years, we have offered tremendous benefits to foreign businesses that have allowed them to achieve success in new countries. Some of the key reasons you should consider using NHGP as your PEO in Thailand include:
- Full employment model – NHGP offers a full employment model and auxiliary business services that meet the needs of your business. We can handle all phases of the employment relationship from recruitment and onboarding to management and termination.
- Industry experts – All services are provided by in-country experts who are professionally qualified in matters pertaining to the legal, payroll, and human resources systems that they work with. They also have professional experience working in various industries. Our staff bring their industry knowledge with them to create best practices in employment agreements and relations.
- Compliance assurance – We process all funds payable to the employee through our Thai compliant payroll system. We provide you with a monthly report that shows tax payments and payments to third parties. Our experts also keep you updated on relevant changes to the law so you can make adjustments as necessary.
- Single point of contact – You will be assigned an account manager who will ensure that your payroll, human resources, and other administrative tasks are handled in a proper manner by our respective expert team members across various departments.
- Custom solutions – We understand that every business is unique. This is why we offer personalized job specifications, job offers, and benefits packages. We will work with you to make your expansion in Thailand a success.
Get in Touch with New Horizons Global Partners
For more information about expanding your business to Thailand through our PEO solution, please get in touch with us today. One of our consultants will be in touch within 24 hours to discuss your project and advise on the best market entry solutions.