- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global Employer of Record in Argentina
Global employment services
Different businesses have different needs when it comes to hiring employees. The Employer of Record international talent engagement model may be a good fit for fast-growing tech businesses and startups that need to take on people quickly and easily.
An Employer of Record (EOR) is a business that employs workers on behalf of another company. The EOR arrangement is often used when an organization wants to hire employees in a foreign country. EORs can be used as an alternative to setting up a branch or company in the jurisdiction of employees. This can save time and money by avoiding having to go through the process of setting up a separate legal entity.
To help your organization legally onboard and payroll a workforce in Argentina, Acumen International offers a global employment solution via our Global Employer of Record (EOR) designed to help you circumvent the legalities of direct hiring, eliminating the need for you to establish a legal entity in Argentina in order to conduct business there.
Global Employment Challenges and Pitfalls to Avoid
When you’re hiring a staff to work overseas, some challenges come with that far beyond the nuts and bolts of finding and vetting candidates. These challenges are often overlooked by companies when they think only of locally-hired employees, but can have extreme consequences for businesses who employ people internationally.
Why is this? Because if you’re not careful, you might find yourself unwittingly breaking one employment law regulation or another in your new country. This could lead to fines, other legal issues, and negative public exposure for your brand. It’s not just about being bad for your business, though; it’s also about being bad for the people who work in your company.
There are many different types of taxes that businesses have to pay, but employment taxes are one of the most important. These taxes can vary significantly from country to country and can be a large portion of a monthly salary.
In-country Employee Registration
It is essential to ensure that employees are properly registered with the local authorities before they start work. Failing to do so can result in penalties for both the employee and the employer.
Payroll Calculations: Country-specific Requirements
In many countries, payroll calculations vary significantly. For example, employees in some countries may receive a 13th and 14th-month salary halfway through the year or at Christmas as standard. Thus, it’s important to be aware of the payroll practices in your country of employment.
Some countries have different rules when it comes to employment contracts. To avoid any surprises, it is crucial to understand how payroll calculations work in your new country. In some cases, you may be responsible for paying your employees for the entire duration of their contract even if they are not performing as expected or you want to end their employment early. This can be a financial shock to foreign employers who are not used to this practice.
For this reason, it is essential to ensure that you review and understand the terms of the employee’s contract before hiring them, so you know what to expect.
End of Financial Year Reporting
The financial year for many countries ends in March and companies that have a presence in more than one country need to produce financial reports for each country and send them to the relevant government bodies. With the end of the financial year approaching, accountants are busy at work preparing reports, some of which can be complex and difficult to navigate through as they may be on foreign websites with little or no English language support. It is important that you get these reports lodged on time as it could result in late payment penalties.
A lot of these reports need to be completed in the local language, so it is recommended that you use an accountant specializing in the country you are based in to ensure compliance before lodgement deadlines.
This is the reason why many companies outsource payroll management to a global Professional Employer Organisation (PEO) as they have experts with deep knowledge of local labour laws and tax regulations in each jurisdiction. In such cases, a Global PEO will ensure compliance with local employment and tax requirements.
Local Employment Contracts Compliance
As an employer, it is crucial to have local employment contracts that are compliant with the law of the jurisdiction in which your employees work. These contracts should be provided in both English and the local language. Do not simply copy and paste your existing contract template from your home country – this could result in non-compliance and serious legal consequences.
When recruiting employees for your business, it is critical to ensure that their employment contract is appropriate for the country where they will be working. A Spanish employment contract may not be valid in Latin America, simply because they are both Spanish-speaking countries.
The language of the employment contract is a crucial detail to keep in mind during the recruitment process, as non-compliance to target country employment laws or any mistakes with the paperwork could cost you money, time, and potentially your business’s reputation.
Employment Contract Termination
The employment termination process can be just as important as the hiring process. This part of employment that should not be taken lightly as it can have many implications and consequences, both for the employer and the employee. Therefore, it is important to carefully consider all aspects of the situation before making a decision.
The start of termination process begins when the employee signs the employment contract. If the termination guidelines are clear and precise from the terminating an employee will be much smoother.
When setting out the terms of employment, it is important to be clear about the notice period (making sure it’s aligned with the country-specific regulations), and what is expected in terms of returning company equipment and a credit card or cash float balance. Non-compete clauses protecting your intellectual property are also important considerations. Doing so will help avoid misunderstandings and potential legal problems down the road.
If an employer does not have clear procedures for the termination in their employment contract, they may face litigation. If an employee feels they have been mistreated, they may become disgruntled and contest the termination legally. This can be a costly and difficult, especially if the dispute is in another country with a different time zone and language.
Employ your Selected Workforce in Argentina via Acumen’s Employer of Record (EOR) Solution
Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand your global reach and engage the brightest global talent for your projects.
Acumen’s EOR global employment solution helps businesses to overcome legal challenges by hiring and compensating your local and expat workforce in Argentina on your behalf, in a risk-free and cost-effective manner.
As an Employer of Record services provider, Acumen International helps businesses to legally engage and pay their selected highly skilled professionals in Argentina. Businesses desiring to hire local employees should be prepared to pay competitive salaries, to attract and retain the most qualified candidates.
Acumen’s Employer of Record (EOR) service in Argentina offers an efficient and inexpensive alternative to direct hiring. Our solution gives companies the opportunity to operate in Argentina, and in 190 international markets where we serve our clients, without registering as a local business entity.
Why Choose Acumen International Employer of Record?
- Global HR compliance and local expertise
- Your trusted Employer of Record partner in 190+ countries.
- One point of contact for all countries
- One global service agreement for current and future countries
- One invoice
- Accurate and timely payroll
- Immigration and work permit sponsorship
- Employment contracts drafting, 100% in-country compiance
- English-speaking global service team and local languages speaking support
- 24/7 client service available in all time zones.
Global EOR (Employer of Record) Services: Save Up to 75-80% of Employee Management Cost
|Average Cost & Time||Our Solution *|
|Time to Market||10+ weeks||72 hours|
|Legal Advisors Fees||$ 10 000 +||………….|
|Official Employment & Benefits||$ 20 000 +||………….|
|Incorporation & Liquidation Costs||$ 11 000 +||………….|
|Bank Account Setup||$ 2 000 +||………….|
|Maintenance costs and in-house staff to manage the foreign entity, payroll set up, and administration.||$ 25 000+||………….|
|The approximate total cost of new market entry**||$ 74 000 +||$ 15 000|
* Per one Employee
** Costs vary from country to country
Spotlight on Argentina
Argentina is a country located in the southern part of South America. The eighth-largest country globally, it is the second-largest country in South America after Brazil, and it’s about one-third the size of the United States. Argentina is bordered by the Andes Mountains and Chile to the west. The country is divided into four regions: The Andes, the North, the Pampas, and Patagonia. The Pampas is the agricultural heartland.
- Capital: Buenos Aires
- Population: 42, 782, 320
- Industries: Despite recent economic struggles, Argentina continues to play an essential role within the global economy, especially with regards to its agricultural production. The sector is mainly based on livestock farming, cereal cultivation (wheat, corn, and transgenic soy), citrus fruits, tobacco, tea, and grapes (mostly for the production of wine).
- Local currency: Argentine peso
Legally Onboard and Payroll your Employees in Argentina with Acumen’s Global Employment Solution
As a global employment organization, Acumen International serves both end employers and service companies representing international clients.
Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:
- Global talent acquisition and retention
- Global expansion, to help you quickly enter new global markets without legal and HR compliance risks
- Local support for international clients and their expat employees
Acumen is helping you navigate the challenges which global COVID-19 pandemic and market unrest caused. Timely counselling with the Acumen’s team will ensure proper guidance of the client through challenging situations and assist him in resolving complicated situations.
You can trust Acumen to handle the global employment and HR details of your workforce management in Argentina, to ensure full compliance with Argentina’s employment laws. Reduce your risks while expanding your business, without establishing your own legal entity in Argentina. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.