How to stay compliant

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

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How to stay compliant

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

So you want to hire someone in Cambodia. 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 Cambodia, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in Cambodia 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 entity, they’re rarely cheap or fast.

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

The solution: Hire your teammates in Cambodia 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 Cambodia). 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 Cambodia:

Everything you should know about using an EOR in Cambodia

Are you a business owner or manager considering expanding your operations to Cambodia? If so, you may be wondering about the best way to manage your workforce in this country. One option to consider is using an Employer of Record (EOR) service. In this post, we'll break down what an EOR is, how it works in Cambodia, and the legal and regulatory conditions you should be aware of. We'll also explore why hiring independent contractors may be a simpler option for your business.

What is an EOR?

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

How do EORs work in Cambodia?

In Cambodia, an EOR can help your business navigate the complex legal and regulatory environment. The EOR will handle all the necessary paperwork and compliance requirements, including registering your business with the Ministry of Labor and Vocational Training and obtaining work permits for your employees. The EOR will also manage payroll and taxes, ensuring that your employees are paid accurately and on time.

Legal and regulatory conditions to consider

When using an EOR in Cambodia, there are several legal and regulatory conditions to be aware of. For example, foreign companies must register with the Ministry of Commerce and obtain a business license before operating in the country. Additionally, there are strict labor laws governing issues such as working hours, overtime, and minimum wage. Failure to comply with these laws can result in fines, legal action, and damage to your company's reputation.

Why hiring independent contractors might be easier

While using an EOR can be a good option for some businesses, it may not be the best choice for everyone. One alternative to consider is hiring independent contractors. Independent contractors are not subject to the same labor laws and regulations as employees, which can make them easier to manage. Additionally, independent contractors can almost always be hired more quickly and with less paperwork than traditional employees.

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.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

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