How to Convert Contractors to Employees in Cambodia: A Complete Guide
Table of Contents
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Key Takeaways:
- Key differences between contractors and employees under Cambodian law
- The essential steps for contractor conversion in Cambodia
- Employer of Record (EoR) options for businesses without a local entity
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Without a Local Entity: EoR Services in Cambodia
If your business does not have a local entity in Cambodia, managing the legal and administrative aspects of converting contractors to employees can be challenging. Fortunately, partnering with an Employer of Record (EoR) can help simplify the process.
What is an Employer of Record (EoR)?
An Employer of Record is a third-party service provider that acts as the legal employer for your employees in Cambodia. The EoR handles all aspects of employment, including payroll, tax compliance, and social security contributions, while allowing your business to maintain control over day-to-day operations.
Benefits of Using an EoR in Cambodia
- No Need for a Local Entity: An EoR allows you to employ workers in Cambodia without establishing a local legal entity. This can save significant time and resources.
- Full Compliance: EoRs are experts in Cambodian labor laws and regulations, ensuring that your business remains compliant with local employment requirements.
- Simplified Payroll and Benefits: The EoR manages payroll, tax withholdings, and benefits administration, ensuring that your employees are paid accurately and on time.
- Reduced Risk: By using an EoR, you mitigate the risk of misclassification, non-compliance, and potential legal disputes.
