Hiring staff through an Employer of Record in Bolivia (also known as an EOR) is a valuable option for those thinking about incorporating a company in the Andean country.
As labour regulations in Bolivia are complex, it can be challenging for foreign company executives and recruiters to hire and manage staff in full compliance with the law when expanding.
We explain the services offered by an Employer of Record in Bolivia, and the benefits of hiring local staff through these organizations to support your expansion and reduce risk of non-compliance.
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How does an Employer of Record in Bolivia work?
The Employer of Record in Bolivia (EOR) acts as a registered employer organization for a third party (the hiring company). Its status as such is recognized before the country’s Ministry of Labor, Employment and Social Welfare (Ministerio de Trabajo, Empleo y Previsión Social).
However, the hiring company is the entity who maintains a daily relationship with the hired employees, and has control over their tasks and activities.
In this way, an EOR is therefore responsible for all activities regarding the hiring process and legal compliance, such as:
- Representing the company before government authorities in Bolivia
- Suggesting the best type of contract for each employee
- Obtaining relevant work permits and visas for foreign employers, if necessary
- Managing employee payroll
- Keeping the hiring company informed, updated, and compliant with all relevant labor laws in Bolivia that impact their business.
Why hire staff through an Employer of Record in Bolivia?
Foreign companies doing business in Bolivia may face administrative difficulties when hiring staff, due to language and cultural barriers and unfamiliar legal frameworks. This puts the company at risk of non-compliance due to lack of knowledge or understanding of their requirements, which can result in fines and other sanctions.
An Employer of Record in Bolivia is a formally established local entity with all the necessary permissions to operate in the country. Therefore, it will facilitate the process of hiring Bolivian staff.
Key benefits of hiring staff through an EOR are:
- Avoid company formation processes: Hiring staff through a registered EOR in Bolivia allows companies to enter the market without forming a company. This is especially helpful for those wishing to test the market with a lower-level investment, before establishing a formal presence
- Work permits: The Employer of Record can request all necessary work permits for foreign employees on the hiring company’s behalf. Note: foreign employees in Bolivia can only represent 15% of a company’s total payroll
- Payments administration is delegated: the Employer of Record in Bolivia manages monthly employee payroll and other payments concerning health insurance and pension funds
- Company representation: Any claims will be addressed to the Employer of Record that fully represents the company
- Flexibility to exit the market: Should your venture not work out or the company’s strategic intent changes, hiring staff through an EOR in Bolivia allows companies to sidestep extensive and costly liquidation procedures.
Avoid risk of non-compliance and costly incorporation procedures
A lack of knowledge of local labor regulations can lead to inadvertent non-compliance when hiring staff in a foreign country. An Employer of Record is not only responsible for hiring the best employees on your behalf, but also ensures that your company complies with all laws in Bolivia.
With an EOR, you can rest assured your company can operate in full compliance with local law, leaving your executives free to focus on core business development tasks.
It is also a recommended option for companies wanting to test the market before making large-scale investments into company formation.
Get support from an experienced Employer of Record in Bolivia
Expanding your business requires significant effort and taking calculated risks. In order to reduce both, hiring an Employer of Record in Bolivia could be the best choice for your company to start doing business in the country.
Our payroll and Employer of Record services in Bolivia can recruit the best local staff for your business, and undertake all payroll activities on your company’s behalf. At Biz Latin Hub, our experienced team of local and expatriate professionals can assist you with all your needs.
Contact us for more information and to receive personalized support.
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