PEO Worldwide supporting clients in “carve out” and “split up” situations
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 co. The existing company infrastructure was to remain in the ownership of the other side of the soon to be split business.
The New co. had to maintain continuity for the employees.
The employees needed to be paid locally and have the payroll run 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 local labour law 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.
The first was to 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.
The second option was to engage the employees through a global Employer of Record service or international PEO.
After initial costings, the option to support the employees internally was ruled out on the grounds of cost, complexity and time.
It was then decided that it made commercial sense to utilise a provider that provides the services through a PEO Model. The client then went to market and identified a number of potential partners that could support them. PEO worldwide were shortlisted and after substantive discussions with PEO Worldwide and others in the space the Client Engaged PEO Worldwide. 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 exacting requirements of the employees. The benefits piece required significant work. Each territory had its own commission scheme, healthcare benefits, some had additional local benefits like food vouchers. There was no standardisation across the territories. 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 consultants 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.