|
|
As global hiring accelerates, regulators across regions are tightening their expectations from Employer of Record (EOR) arrangements |
The current regulatory landscape |
|
|
|
Worker classification: EOR models are being closely analyzed to ensure workers aren’t misclassified (this is a key risk area for global employers) Taxation & withholding: Local compliance remains non-negotiable Data protection: GDPR in Europe and similar frameworks across APAC demand robust controls over employee data, especially in relation to payroll, benefits, and HR documentation Benefits & parity: While statutory benefits are mandated worldwide true parity with in-house employees isn’t always enforced, creating risks for both reputation and retention |
Emerging regulations: What’s Coming Next |
EU & UK: Draft proposals are pushing for: Tighter worker classification: Statutory protections for EOR employees on par with full-time hires US: States like California and New York are moving toward benefits parity mandates, particularly on health insurance and retirement benefits India & APAC: Updated labor codes demand clearer employer responsibility for social security, defined contributions from EOR providers and stronger protection for gig and contractual workers Global Data Privacy: Expect further GDPR-style expansions on payroll data localization, explicit consent requirements and tighter cross-border data transfer policies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gaps & Shortcomings in Current Regulations |
Fragmented global compliance: Different rules across jurisdictions create a complex compliance map for multinational employers Benefits inequality: EOR-employed staff often lack access to stock options, bonuses, or long-term incentives even when performing identical roles Uneven enforcement: Even well-designed laws suffer from uneven implementation, especially in emerging markets Limited employee voice: Workers often don’t know whom to approach. Be it the EOR provider or client company, when disputes arise |
Key Insights |
62% of global employers say compliance complexity is their #1 barrier to cross-border hiring 3 in 5 employees hired via EOR expect the same benefits as directly hired colleagues, creating pressure on employers to move toward parity India’s labor inspection digitization has increased compliance scrutiny across payroll, social security, and contract management Global data protection fines have grown 40% YoY, indicating regulatory intolerance for mishandling HR data APAC is now the fastest-growing remote hiring hub, making it a focal point for upcoming regulatory alignment |
Insight: Regulators want transparency, parity, and proactive employer responsibility |
What employers should do now |
Audit contracts & policies: Align contracts, SLAs, and onboarding documents with existing and upcoming regulations Plan for parity: Move toward benefits parity for EOR hires to enhance employer brand and reduce attrition Monitor policy shifts: Use compliance dashboards or external legal partners to track regulatory changes Strengthen employee communication: Clear channels reduce disputes and reinforce trust |
P.R.GLOLINKS as your EOR partner in India |
We enable companies to hire in India safely, compliantly, and with full transparency. Here’s how we stand apart:
End-to-end compliance management: We interpret and apply India's evolving Labor Codes accurately Transparent & audit-ready processes Benefits parity consulting: We enable employers to structure competitive benefits that align EOR employees with full-time staff improving experience and reducing churn Secure data protection framework: Faster, risk-free hiring: From onboarding to payroll to ongoing compliance, we enable you to scale in India without setting up a local entity or managing complex labor regulations
Employers who adapt early will reduce risk, improve employee trust and grow globally without operational bottlenecks. If you are looking for strong parity and tighter compliance when establishing your presence in India, schedule a call with our experts to know more. |
|
|
|
|
