Our client was a well-known Business Process Outsourcing company in East Asia. They were looking for a reliable EOR (Employer of Record) company in Sri Lanka. They are required to enter into a joint agreement to provide EOR services to their global clients who got a presence in Sri Lanka.
Our Initial Approach
When the partner company had selected the employee, we started the deployment process by offering and issuing the employment contract and registering for statutory benefits, etc. As there are four parties involved: SourceOne, Partner, Client, and Employee generally the communication to be very effective. Then SourceOne moved to the next stage making payments of monthly salaries and other allowances, legal and fiscal declarations, payroll, and HR administration, as well as the social charges of the Employee.
SourceOne managed the legal, fiscal, and administrative responsibilities in accordance with the law of social security, tax regulations in Sri Lanka, and the Employee’s contract of employment.
SourceOne as the Employer of Record took over the burden of employment-related HR administrative work from our partner company. We offered them our services under the following segments,
- Drafting the contract of employment for employees in each location in line with local statutory requirements.
- On boarding the staff and making sure they are aware of SourceOne’s role in their engagement.
- Set up and management of statutory and voluntary benefits (EPF, ETF, PAYE, Gratuity)
- Calculate and deliver Payroll each month.
- Prepare monthly reports.
As the worksite employer of the EOR partnership, our client benefited in many ways without having to set up a legal entity in Sri Lanka. Some of them are as follows;
- Approachability to big-business benefits (health care, retirement, etc.) at a lesser cost.
- The expertise of Specialized HR professionals.
- Decrease in payroll processing and related accounting costs.
- Comprehensive employer accountability management.
- Relief from Main HR Administrative duty.
Our reasonable Pricing structure, Proper management, and Streamlining of time-consuming tasks helped our client to bring down their administrative costs to about 50%. And also because of their decision to go for an EOR strategy they were able to focus on strategic initiatives rather than administrative duties providing them the much-needed support that can free up time and money for key revenue-generating opportunities.