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.
The speaker for Singapore’s addition of the High-Speed Market Entry webinars was Leticia Loh, AYP’s Assistant Director of Customer Experience. Leticia has over 15 years of experience in Human Resource (HR) Operations, and is responsible for formulating AYP’S Southeast Asian strategies, as well as overseeing all PEO contracts. Last but definitely not least, Leticia has experience in creating a unique and satisfactory customer experience for all clients. In this webinar, Leticia discussed the benefits of using a PEO/EOR, its scope of service, Singapore’s various contracts and laws along with the Return on Investment (ROI) of using a PEO/EOR.
Benefits of Using PEO/EOR:
PEO is a less stressful and more cost-effective way by which companies can test drive the market in a given country or region, before deciding if they want to commit long-term. It is also far less time consuming than if the company were to open an entity in any given country or region. Furthermore, this can be done anytime and anywhere which not only adds convenience, but a competitive edge over other top competitors in terms of efficiency. Some benefits of utilising this service would include a lower employee turnover rate, higher rates of company growth along with fewer concerns about employee challenges. Utilising a PEO/EOR service is not only cost-effective and efficient, but it is also compliant to local labour laws, and includes payroll, tax and employee benefits.
When a company chooses to take on AYP’S PEO/EOR Services, AYP takes care of the company’s employment contracts, group insurance coverage, payroll, employee benefits, labour law updates, provision of ongoing HR Support and work permit or visa-related procedures. After the commercial agreement between AYP and a client in endorsed, the employee can start work at any time. First, the employee’s data and documentation are collected, and an employment contract is drafted. Once this is approved by the company, it will be relayed to the employee along with access to our online portal, where the employee can access their leave, claims, insurance and payroll. Supervisors can then approve these through the same online portal.
Singapore’s Contract Types, Labour Laws, Employee Benefits & Work Permits:
Singapore has two types of contracts for employment, namely permanent contracts and short-term or project-based contracts. A typical contract should include an employee’s full name, job title, start date, working hours and days, wages, pay day, leave types, medical and notice period. Under Singapore’s Labour Laws, all employees are covered however, Part IV of this law does not cover managers and executives when it comes to rest days and hours of work. By law, all employees are entitled to annual, paid public holiday, childcare, maternity and medical leaves. The law also covers statutory contributions, termination clause, timely payment of salary, medical reimbursements, workmen compensation insurance coverage and probation clauses only if applicable. Employees And employers are also required to contribute to the country’s Central Provident Fund (CPF). The rates for this are dependent on one’s age and monthly wages.
The process of acquiring an employment pass in Singapore starts with a job advertisement which the individual responds to. Next, an SAT Test has to be taken and details submitted for approval. After which, a work pass is issued upon acceptance and approval. There are two types of work passes available in Singapore, a dependent pass which allows one’s family or spouse to join them in Singapore, and a long-term visit pass for in-laws or stepchildren.
AYP has had over 10 years of experience in providing PEO/EOR Services to clients. We have managed to achieve significant business growth for some 300 local and foreign firms in Singapore. Our existing partners are now achieving between 30%-50% of growth annually and now more than ever, have assured employees’ legislative compliance during the Covid-19 Pandemic.
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.