COVID-19 has brought a sudden surge in work from home culture. Companies are now hiring remote workers to expand their talent pool efficiently. However, employers must consider the various legal challenges of hiring a remote worker.
Remote workers are also often deprived of most of the privileges that a regular employee has. To ensure a high employee satisfaction rate, employers must not ignore those either.
Let’s take a look at the legal challenges of a remote worker when they decide to work remotely from Vietnam, Indonesia, or the Philippines.
Table of contents
Legal Challenges Of A Remote Worker
Lack of Health Insurance
Apart from a stable salary, most regular employers benefit from health insurance. 81% of employers offer health benefits to their employees and their families. But one of the legal challenges of a remote worker is that they are deprived of this basic need. In case of a health emergency, they are bound to rely on their savings.
Dental insurance is the third most common benefit that is also offered by employers. Dental treatments are quite expensive and remote workers also have to bear its cost without external support.
No Retirement Plans
Full-time employees enjoy pension after their retirement. But that is not a possibility for remote workers. Most remote workers have to plan out their finances for their old age. They either have to invest or save lots of money.
Without the underlying pressure from HR departments and employers, most remote workers forget to plan for their retirement. Most regular employees are automatically enrolled in retirement plans by their companies.
This is a very critical legal challenge for a remote worker as they often struggle to have a financially secure future. They have to scavenge for various new ways and sign up for different plans for their retirement.
Ineligible for Work Visas
One of the most significant legal challenges of a remote worker residing in a foreign country is the issue of a work permit. It opens many new doors for foreign employees, giving them access to government benefits as well. Unfortunately, remote workers are also deprived of this benefit.
They cannot get a work permit without formal employment. Companies who employ foreigners provide them with a petition or sponsor them. But the laws of Vietnam, the Philippines, and Indonesia require such companies to be registered. There is also a requirement for such companies to be either fully or partly nationalized.
These companies then utilize their Authority to Employ to aid in the work visas of their employees. But remote workers working as independent contractors do not have this option. Hence, companies who want their remote workers to obtain a work permit should opt for an employer of record.
Without a work permit, remote workers may have to struggle to stay in the country. This might affect their performance and their relationship with their remote employer.
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Ineligible to Bring Family Members
The legal challenges of a remote worker do not end here. One of the most unfortunate things about working as a freelancer in any country is that they can not bring their family members.
A remote worker visa in the Philippines allows foreign remote workers to extend their visas to their children under 21 and their spouses. Except for foreign investors, a remote worker visa in Vietnam is needed for freelancers to stay in the country for up to 2 years. Remote worker visa Indonesia is slightly challenging to get. Indonesia has strict policies for remote worker visas. A work permit (KITAS) is needed for remote workers who want to work from Indonesia.
Although issued for one year, KITAS also allows remote workers to bring their families with them. Remote worker visa Indonesia has to be extended yearly. Companies should encourage their remote workers to obtain all these necessary permits before they start working remotely in South-East Asia.
The Solution of Employer of Record Service
These legal challenges of a remote worker can be mitigated by using an employer of record. Both employers and remote workers can secure themselves through the use of a trusted employer of record.
Having an employer of record can potentially make it super easy to work with remote workers! Usually, an employer of the record only charges takes care of all the remote workers for a company.
In other words, the employer of record service, such as Emerhub, makes remote hiring a breeze! It opens a gateway for remote workers to get eligible for a remote work visa in Indonesia, Vietnam, or the Philippines.
An employer of record also provides the majority of the employment benefits to those remote workers. This ensures maximum employee satisfaction and reduces employee churn.
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Top Benefits of An Employer of Record
Here are the top reasons why having an employer of record would be beneficial for your business:
- An employer of record like Emerhub has the full capability of handling liability and compliance. It acts as a middleman and helps expand in South-East Asia without having to open a branch office.
- The employer of record carries the burden in case of any insurance or legal liability related issues.
- It helps you expand by outsourcing your employment and administrative functions for you.
Save time, money, and effort required to set up a subsidiary in the South-East Asian Market. Redirect the same resources for the growth of your business and let an employer of record handle the rest.
Treat your remote workers like first-class citizens irrespective of where they live. Your remote workers should not have to worry about their retirement plans or their social security benefits. Your company should make it clear that it cares about its remote workers.
With our help, allow your remote workers to obtain work visas. This could not only prove life-changing for them but also for you. Securing the future of your remote employees would increase their trust in you. Not only that, but you’d also be able to outsource your work without having to worry about any underlying legalities.
Our dedicated team at Emerhub ensures that your remote workers receive the respect and the benefits they deserve. This will help retain long-term loyal remote workers.