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What is an Employer of Record in Panama?

What is an Employer of Record in Panama?

Panama is an attractive market for foreign investors when it comes to a strategic geographical location, Panama Canal, their business environment, use of the dollar, attractive tax system and other factors. Panama ranks first in receiving foreign direct investment (FDI) in Central America, reaching US$ 5.5 billion in 2018. Working with an employer of record in Panama can be beneficial for your business. However, it’s not always easy for foreign executives to start a business in Panama. Being an employer engaged in a new market, it can be challenging to deal and comply with all employment law regulations, including paying employee benefits. Gain insight into the beneficial employer of records services in Panama when expanding your company. An Employer of Record carries out legal and requirements of immigration and employment and payroll services. What is an Employer of Record? Employer of record, also known as an EOR, is an external partner of a company. EOR companies are the third party that is hired to take responsibility for the formal employment tasks of your company. They carry out legal and requirements of immigration and employment and payroll services. However, they do not serve to day to day work activities like the evaluation of employees.In specific, they carry out legal activities like: Organizing all visas and work permits for the employees, trying to avoid delays or refusals.Offering a recorded entity for running a local, compliant payroll inside the country.Knowing all labor laws in the selected country, concerning to local employee contracts and worker...

Understanding Labor Laws in Panama

Understanding Labor Laws in Panama

Understanding labor laws in Panama is crucial as an expanding company looking to hire staff. Panama offers competitive conditions for doing business - it has the lead in economic growth in Central America which draws much attention from foreign investors. The country’s estimated GDP growth for 2019 is 3.7%, and it has a reported GDP per capita of US$15,642. Furthermore, Panama is expected to continue experiencing stable growth in 2020. The Panama Canal strongly supports international commerce activities, and the country has developed a set of incentives that favor foreign investment. As an employer entering this market, you must comply with all current labor laws when hiring staff in Panama.   Labor laws in Panama: Know the Labor Code Labor and employment in Panama is governed by the Labor Code. This code was adopted through Cabinet Decree N. 152 of March 1971, reformed by Law N. 44 of August 1995 and it specifies norms to regularize labor. Minimum wage Opportunities for investment in Panama are scattered in a variety of industries, each with certain recruitment needs. To hire talent for your business, it’s important to know the different minimum wages applicable for each industry or economic zone. There is no such thing as an equal minimum wage for all economic activities in this Central American country. According to labor laws in Panama, the minimum wage depends on the type of activity and size of the business. There are 37 different classifications for minimum wages between regions.  The most common commercial activities and their respective wages...

5 Reasons to Establish a Local Sales Presence in Brazil

5 Reasons to Establish a Local Sales Presence in Brazil

Establishing a local sales presence in Brazil becomes more relevant as the country is in the process of nurturing a more favorable, globally competitive business environment.  Although the economy is showing signs of growth and its domestic market is vast, many foreign companies expanding into the country face the challenge of hiring employees and the responsibilities involved under local employment law. Establishing a local sales presence in Brazil is made easy for countries looking to expand into the country with the help of a Professional Employer Organization (PEO). In recent years, the government has been taking measures to facilitate easier labor conditions for employers and employees and, consequently, make Brazil more attractive to those who intend to do business in the country. We explore the value of establishing a local sales presence in Brazil. Labor reforms improve ease of establishing a local sales presence in Brazil Among the measures adopted by the government to improve business conditions, Brazil implemented a labor reform in 2016. This reform changed crucial points of the country’s employment legislation. Among the main changes included permission to outsource employee recruitment and human resources activities, including for company’s core operations. In this sense, the possibility of hiring employees through a PEO has considerably increased. Despite these favorable trends, foreign investors may still feel insecure before starting their activities in Brazil. Market entry processes can be complex, and costly. Thankfully, there’s an alternative to setting...

Why Hire a Sales Executive in Panama for your Expansion?

Why Hire a Sales Executive in Panama for your Expansion?

In the process of business expansion, entrepreneurs might be seeking to hire a sales executive in Panama. For this, it’s important to research local labor laws and understand how to hire a sales executive in Panama to start their business. Panama has a strong economy tied to the dollar and according to the World Bank, GDP growth will reach 4.5% by the end of 2019. This gives Panama the lead in the Central America region. On top of that, the country offers a diverse array of commercial opportunities including financial services, international commerce, tourism, construction, and agriculture. This range of market offerings makes investing in Panama an interesting opportunity. A sales executive is a valuable asset to begin offering your goods as a small business in a foreign country. Learn why a sales executive is important and find out how you could hire a trustworthy executive in Panama. The importance of a sales executive in Panama When starting a new business as a foreigner, connecting with the local market is important, but not always easy to crack. Hiring a seasoned local sales executive will help your business successfully position your products in the Panamanian market as they have cultural know-how and are acquainted with the different types of customers available in the country.  One of the responsibilities of a sales executive is to meet customers’ expectations. Sales executives engage with potential customers to sell your business’ offerings, they make sure customers’ needs and expectations are met and, consequently, grow your business. Additionally, they...

How to Hire a Sales Executive in Colombia

How to Hire a Sales Executive in Colombia

Colombia has become one of the most attractive investment destinations in the region, with a steady economy and an increasing number of investors seeking to hire a local sales executive to begin running operations. When starting a business as a foreigner, it is important to partner with an experienced sales executive to offer your products to potential clients. The hiring process in Colombia can be smooth if the business owner has the appropriate guidance to comply with labor legislation and statutory laws.  In this article, we outline the two pathways to hire a sales executive in Colombia.  Hiring a sales executive in Colombia In Colombia, there are two pathways to hire an employee: through a local legal entity or through a professional employer organization (PEO). 1.How to hire a sales executive through a local legal entity Hiring a sales executive through a local entity should obey the Labor Law Legislation, regulated by the National Constitution and the Labor Code (Código Sustantivo de Trabajo). Some key requisites to comply with when hiring an employee include: Accounting and tax obligations Affiliation with the social security system Social benefits: unemployment assistance, unemployment interests, vacations Remuneration must meet the current legal minimum wage proportional to the time worked and nature of the contract.  Workday not exceeding 8 hours, if it is an internal job it does not exceed 10 hours, or overtime requirements must also be complied with. Additionally, in Colombia, there are 4 types of labor contracts: indefinite term, fixed-term, temporary and...

Why Hire a Sales Executive for Your Expansion in Mexico?

Why Hire a Sales Executive for Your Expansion in Mexico?

Investors seeking to hire a sales executive in Mexico should make sure to be compliant with local legislation. In this sense, there are organizations that make the hiring process smooth so entrepreneurs can focus on the vast opportunities available in Mexico. There is a diverse array of opportunities for business expansion in Mexico: from real estate to manufacturing, to energy and export and import of goods in the country. In fact, due to the affluence of investment opportunities, foreign direct investment (FDI) increased by 7.8% during the first 9 months of 2019. All of these industries require skilled professionals who can help you achieve commercial success in this thriving market. Learn how to locate the talent pools for skilled executives in Mexico and start your business on the right track. The importance of a local sales executive when expanding abroad Hiring a sales executive in Mexico is a smart, cost-effective way to enter the market and take advantage of these commercial opportunities. Sales executives implement expert strategies to boost sales and are important at the early stage of your international venture. Essentially, having a local sales executive on your team during an expansion will enable you to better connect with clients in Mexico. They will help increase awareness of and familiarity with your products, so you can better connect with consumers in the Mexican market.  When looking to hire a sales executive in Mexico, it is important to make sure they have the right skills and cultural know-how to negotiate local business deals successfully. Local...

Why Expand with a PEO in Australia?    

Why Expand with a PEO in Australia?    

Australia has made headlines due to its record of uninterrupted years of economic expansion among developed countries. Although there has been some de-acceleration in recent growth, the country has reached nearly three decades of continued positive development. Expanding to Australia is an appealing investment due to the country’s rich natural resources, education, and tourism. Australia’s economy is low-risk, and the workforce is educated and highly-skilled. To tap into this workforce, you can seek the support of a Professional Employer Organization (PEO). A PEO in Australia will empower entrepreneurs to link in with the country’s many international trade deals through skilled Australian staff that makes the country a great place to expand to.   We outline how PEOs can help you enter this exciting market. Professional Employer Organizations (PEO) in Australia PEOs partner with businesses through a co-employment model. Businesses retain control of all employees, but employees legally appear on PEO registries for compliance purposes. Additionally, PEOs provide payroll, benefits and human resource services. These employment organizations help interested parties to enter a new market. PEOs will ensure full compliance with the country’s employment legislation, offering cost-efficiency during company formation and ongoing human resource-related operations. In fact, according to a recent study performed by market observers, the average cost savings from engaging with a PEO is US$1775 per year, per employee. On top of that, it is reported that outsourcing PEO generates lower...

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