During the process of a company split up, a market leading wireless communications and broadcasting technology business identified a need to support 15 individuals working across the globe in 5 different countries. These individuals were employed by the group but were to transfer to be employees of the new company. The existing company infrastructure was to remain in the ownership of the other side of the soon to be split business.
The new company had to maintain continuity for the employees.
The employees needed to be paid locally and processed for the relevant territory.
The company benefits needed maintaining in addition to the statutory requirements.
New contracts needed to be issued in the different territories and had to be legally compliant.
Each territory also had its own cultural and customary differences that had to be observed.
The Client identified the need to support its employees and decided it had two options available to resolve its issues.
Provide these services in-house by incorporating and setting up its own infrastructure in each territory. This included company incorporation, bank account setup, payroll registration, annual accounting requirements, legal and HR support.
After initial costings, option 1 to support the employees internally was ruled out on the grounds of cost, complexity and time.
It was therefore decided it made commercial sense to utilise a provider that provides the services through a PEO Model. The client then went to market and identified potential Professional Employer Organisations that could support them. PEO worldwide were shortlisted and after substantive discussions with the team at PEO Worldwide, decided to engage with us as their legal Employer of Record. The decision was made based on:
the professionalism of the team
in-house expertise (of PEO Worldwide)
flexibility to meet the client’s needs
the endorsement by PEO Worldwide’s existing clients
Delivering the Project
PEO Worldwide immediately began working with the client to understand the requirements for transferring their employees through a PEO Model. The PEO Benefits administration piece required significant work as each territory had its own commission scheme, healthcare benefits plus some had additional local benefits, like food vouchers. Add to that extensive international travel and a global health care policy, it’s easy to see why the client chose PEO Worldwide to deliver.
The onboarding and transfer of all the employees from signing of the agreement, to the first day of official work under the employees ‘New Employer’ was completed in 6 weeks.
The Client has since commented: -
“We partnered with PEO to transition 5 entities to PEO across EMEA, APAC, and Latin America. This was a complicated transition with benefits, allowances, special exceptions, and very long tenured employees in each entity; the transfer went smoothly, was on time, and on budget. We would definitely partner with PEO (Worldwide) again if we have a future EOR transfer.”
If you are looking to employ new hires across the globe, or transition existing employees to a Global PEO service, contact us at PEO Worldwide today to see how we can help.