How to stay compliant

Employer-of-Record (EOR) in Bolivia: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Bolivia: Do You Need One?

So you want to hire someone in Bolivia. Problem is, your company is located somewhere else. 

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Bolivia, using an EOR can help you bypass the traditional obstacles to hiring full-time employees. 

But there’s a catch: EOR solutions in Bolivia are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Bolivian entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Bolivia, and it doesn’t involve forking out huge amounts of money for an EOR. 

The solution: Hire your teammates in Bolivia as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Bolivia). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month. 

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Bolivia:

Everything you should know about using an EOR in Bolivia

Are you considering expanding your business to Bolivia? If so, you may be wondering about the best way to hire local talent. One option is to use an Employer of Record (EOR) to handle all the legal and administrative tasks associated with hiring employees in Bolivia. In this post, we'll break down everything you need to know about using an EOR in Bolivia, including any legal or regulatory conditions specific to the country. We'll also explore whether hiring an independent contractor might be a better option for your business.

What is an EOR?

An EOR is a third-party company that acts as the legal employer of your workers in a foreign country. This means that the EOR takes care of all the administrative tasks associated with hiring and managing employees, including payroll, taxes, benefits, and compliance with local labor laws. As the client company, you retain control over the day-to-day activities of your workers, while the EOR handles all the legal and administrative tasks.

Legal and regulatory conditions in Bolivia

When it comes to hiring employees in Bolivia, there are several legal and regulatory conditions that you need to be aware of. For example, all employees in Bolivia are entitled to a minimum wage, which is set by the government and adjusted annually. Employers are also required to provide their employees with social security benefits, such as health insurance and retirement benefits.

In addition, Bolivia has strict labor laws that protect workers' rights. For example, employers are required to provide their employees with a safe and healthy work environment, and are prohibited from discriminating against employees on the basis of race, gender, or religion. Employers are also required to provide their employees with a minimum of 15 days of paid vacation per year.

Using an EOR in Bolivia

Given the legal and regulatory conditions in Bolivia, using an EOR can be a good option for companies that are looking to hire employees quickly and efficiently. An EOR can help you navigate the complex legal and administrative requirements of hiring employees in Bolivia, while allowing you to focus on your core business activities.

However, using an EOR can also be expensive, as you will need to pay a fee to the EOR for their services. In addition, you may have less control over your workers than you would if you hired them directly as independent contractors.

Is it possible to skip using an EOR in Bolivia?

Another option for hiring local talent in Bolivia is to hire independent contractors. This can be a good option if you are looking for more control over your workers, as you will be able to set the terms of the contract and manage the workers directly. In addition, hiring independent contractors can be less expensive than using an EOR, as you will not need to pay the EOR's fees.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

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