In the second addition of AYP’s Webinar Series, we discuss high-speed market entry into various countries in the ASEAN Region. Namely Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam. We discuss Professional Employer Organization (PEO) and Employer of Record (EOR), and how these two can be important factors into quickly and efficiently entering a market in any of the aforementioned countries. In this addition of AYP’s Webinar Series, we have experienced and esteemed in-house experts and consultants to guide you through the process and factors that affect high-speed market entry, and how you can use these to your company’s benefit.
In Thailand’s addition of the AYP High-Speed Market Entry Webinar, the main speaker was Aranuch Pheuncob. Aranuch oversees and directs payroll procedures, and ensures compliance with any laws or payroll tax obligations. With over 15 years of experience in the field, she has been in charge of payroll procedures in AYP Thailand. In this webinar, Aranuch discusses the benefits of using a PEO/EOR Service, its’ scope of service, contract types, labour laws and benefits in the Philippines, along with success and ROI of using a PEO Service.
Benefits of Using PEO/EOR:
The use of a PEO/EOR Service essentially links clients to employees through AYP, regardless of their location. The service no doubt provides convenience for clients, as services such as payroll and tax management are taken care of by AYP. Furthermore, worry-free and convenient HR Administration and simple work pass management. The PEO Service also allows for an organisation to quickly and efficiently enter markets all over the region, without the need of an initial local entity. All in all, AYP’s PEO/EOR Service provides efficiency and cost-effectivity to clients.
Should one engage AYP for PEO/EOR Services, AYP is then responsible for drafting the company’s employment contracts, insurance coverage and payroll-related services. AYP also takes care of HR Support, the on-boarding process for new employees as well as updates on local labour laws and regulations.
Thailand’s Contract Types, Labour Laws, Employee Benefits & Work Permits:
Thailand has two types of contracts. Namely the Indefinite-Term Employment Contract (Permanent) and the Fixed-Term Contract (Temporary). The age at which an employer can hire an employee is 18 years old.
Thailand’s Labour Laws also state that normal working hours should not pass 8 hours a day. A worker also should not have to work more than 36 hours of overtime per week and workers get a weekly holiday of a minimum of one day. They are also required to contribute to a social security fund and tax income. Advanced notice also has to be given to an employee should an employer decide to terminate their employment. This notice period should cover a month’s basic salary.
Employees are entitled to a minimum of 6 days annual holiday a year, up to 60 days of paid military leave if applicable, a minimum of 13 Traditional Holidays annually, Leave for Necessary of up to 3 paid days a year, sick leave of up to 30 paid days a year and sterilisation and maternity leave. Should an employee work overtime, their pay is either one time, 1.5 times or three times their basic hourly pay depending on the type of working day the overtime is worked. Employees are also entitled to termination and severance pay ranging from 30 to 400 days of wage payment, depending on the number of years worked in service.
Thailand’s employees are also entitled to social security from the social security department. This includes illness and disability benefits, old age or child allowances, unemployment, bereavement and childbirth reimbursement. Separately, both employer and employee are required to contribute to the provident fund. For employers, AYP has capped contributions at 5% for the first five years of employment and increases depending on the years of service. The maximum contribution percentage is 15%. Employees on the other hand have to contribute between 2% to 15% depending on what the employee specified in the fund application.
Based on research done in 2019, the annual Return on Investment a company can achieve by utilising PEO/EOR Services is approximately 27.2% on cost savings alone. This includes savings in several HR-Related areas and the fact that this service can be provided without the need of any local entities to support this. Both clients and employees benefit greatly from PEO Services in terms of wellbeing, efficiency and cost-effectivity.
In this new addition of our webinar series, we will be discussing the detailed process by which businesses are set up in various locations across Southeast Asia! If you have been looking to expand your business’s horizons, then this is a good place to gather information! Sign Up Now, Limited Seats Available!
*Webinar will be hosted via Zoom