- Global PEO and payroll
- Global HR Compliance
- Expand without a company set up
- Contractor vs. employee: which is better?
- Work permit for hiring expats via PEO
Global Employer of Record (EOR) in Cyprus
What Is a Global Employer of Record (EOR)?
Whereas traditional solutions would require a company to establish a legal entity in a foreign country, hire employees, and then manage their employment-related needs, a Global Employer of Record (EOR) solution allows companies to hire employees from anywhere in the world and manage their employment needs at one central location.
A Global Employer of Record (GEO) is a company that helps multinational businesses find and hire employees from around the world. As more and more businesses look to expand their operations globally, GEOs have become an increasingly popular solution for managing international employment.
When a company expands its operations overseas, and in Canada, it may choose to use a Global Employer of Record to remove the administrative burden of HR from its staff.
Global Employment Services in Cyprus
Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires the establishment of a legal in-country business entity, a complex, costly and time-consuming process that many employers are not ready to undertake.
To help your organization legally onboard and payroll a workforce in Cyprus, 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 Cyprus in order to conduct business there.
Global Employment Cycle — Recruitment. Onboarding. Management. Retention. Termination
Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.
|1. Recruitment||2. Immigration||3. Checks||4. Onboarding||5. Payroll Administration||6. Working Time & PTO Processing||7. Benefits Administration||8. Tax Administration & Reporting||9. Offboarding|
|Talent skilled in highly-specialized areas||Employee Work Visa and Work Permit sponsorship||Health checks||Employment Agreement drafting||In-country registration with statutory bodies||Working hours||Mandatory Benefits||Tax Reporting frequency and tax filing requirements||Employment agreement termination:|
|Executive search||Dependent Visa||Criminal record checks||Compliant worker onboarding on your behalf||Day-to-day payroll management||Overtime||Health insurance||Employer taxes & contributions||By mutual agreement|
|Contingency workforce||Visa extension||Background checks||Account setup in the payroll and HR system||Monthly pay slips or other pay frequency||Public holidays||Workers’ compensation||Employee taxes & contributions||Resignation – by the employee|
|Application for a sponsor license for a foreign national||Education checks||Employee data entry and records maintenance||Accruals||Annual leave||Unemployment insurance||Withholding tax||Dismissal – by the employer|
|Relocation assistance||Managing probation periods||Allowances||Parental leave||Voluntary Benefits||Local tax payments and reporting to local authorities||Notice period handling|
|13th and 14th salary||Sick leave||Share plans for executives||End of financial year reporting.||Final settlement & severance payments.|
|Additional leave||Bonuses & Equipment provision||De-registration with statutory bodies.|
|Expenses reimbursement & business trip processing|
|Health insurance, dental treatment|
Save Up 80% of Global Employment Management Costs with EOR in Cyprus
|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, in-house staff to manage the foreign entity, payroll, 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
Benefits of Global Employer of Record in Cyprus
1. Compliant and Streamlined Employee Onboarding
Employee onboarding is vital to ensuring a smooth transition for the employer and the new employee. By taking the time to induct the new employee into your organization’s team, processes, systems, values, and culture, you are setting them up for success in their new role.
Onboarding can last up to 12 months, but it is essential to remember that the focus should be on social acclimatization and skill development rather than administration and paperwork. By supporting the new employee as they get up to speed towards peak productivity, a global PEO & EOR partner helps you foster a positive working relationship from the start.
- Reduced employee turnover
- Increased employee engagement
- Faster time to peak productivity
- Reduced costs
- Extension of the positive candidate experience
- Assimilation into the workplace culture
- Understanding of role and performance expectations
- Greater employee satisfaction
- Greater hiring manager satisfaction
- Faster identification of skill gaps
2. Guidance on Drafting Employment Contracts and Policies according to Employment and Tax Laws in Cyprus
In most countries, once you’ve identified staffing needs, you’ll need to enter into employment contracts, which must be written in the local language. Before you begin hiring, you’ll also have to agree on and set up a benefits plan. Benefits in your new office will differ from those in your home country due to local labor laws and market expectations. To be on the safe side, think 4-6 weeks to draft a benefits plan that complies with local laws and makes you a competitive, attractive local employer. To avoid delaying your timeline, it’s best to begin drafting your benefits plan while establishing your entity. Assuming some of your staff will be local hires, you’ll need to account for hiring time.
Formal hiring may not be possible until your entity is finalized, but you should consider scouting for talent as soon as possible. And, of course, unless you’re going into turnkey office space, your staff will need phones, internet access, furniture, office equipment, and supplies. You may also be required to translate staff materials into the local language. You’ll want to resolve these matters before hiring staff, or your operational start date may be pushed out another 4-6 weeks.
3. Employment Contract Provisions for Remote & Hybrid Workforce in Cyprus
As organizations strive to adopt hybrid work models that enable employees to work from home or remotely on a long-term/permanent basis, they may be subject to additional obligations regarding employee notification, consultation, and consent.
Working remotely or in a hybrid capacity may require some adjustments to the terms of your employment contract. The workplace can often be a central component of an employment agreement, and changing that aspect of the contract may necessitate getting explicit consent from employees in some cases.
Employers must be aware of the different employment laws in different jurisdictions. Depending on their business location, they may need to adopt different practices in their employment agreements. Any additional obligations arising out of collective bargaining agreements or consultation agreements must also be carefully reviewed.
Organizations can now look at expanded talent pools when making hiring decisions. However, when employing gig workers, it is important to tailor contracts, benefits, and employee processes to fit their needs. This is in contrast to the traditional full-time employee model.
4. New Markets & HR Compliance
When discussing regulatory frameworks, people often tune out. It’s not the most exciting topic. But understanding your target market’s regulatory environment is essential if you’re doing business overseas.
There can be a lot of pitfalls if you’re unfamiliar with the rules across multiple jurisdictions.
As a business owner or entrepreneur, you may be tempted to skimp on research and fail to stay up-to-date on regulatory developments. But this can be fatal because regulation can hugely impact nearly every facet of your business operation in a new country. Ignorance of the law is no excuse – so make sure you know what you can and can’t do before you get started.
Employment regulations are ever-evolving. To stay competitive in the global market, you must stay on top of them. When expanding your business into new markets, you may face HR challenges such as immigration rules, business visas, work permits, employment contracts, intellectual property rights breaches, data privacy, termination reasons, and risks of unfair dismissal claims.
5. Global Payroll Management & Compliance
Managing employees in different countries can be a complex and challenging task. Employees may need to be registered and taxed differently in each country, and there may be other laws that need to be followed. This can make it very hard to keep track of everything and ensure everything is done correctly.
When it comes to payroll, there are many different regulations that you must follow to avoid penalties or litigation. Each country has its laws and regulations, but some standards apply internationally. You must know and adhere to tax deadlines, withholding and reporting laws, and regulations requiring employee tax slip signatures. If you fail to adhere to these payroll compliance rules, you could face severe penalties that could negatively impact your business.
Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must take into account local regulations and taxation requirements, which can be time-consuming and difficult to navigate. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.
- keeping track of ever-changing exchange rates
- understanding the distinction between the home country and host country payouts
- developing clarity about how taxes are calculated in different countries.
Spotlight on Cyprus
Cyprus is an island country in the Mediterranean Sea. The Republic of Cyprus is a part of the European Union. Its unique location and EU membership make Cyprus the perfect place to expand your business globally.
- Capital: Nicosia.
- Population: 1,281,506 (July 2021).
- Official languages: Greek and Turkish. Business contracts can be written in one of these languages or in English.
- Local currency: Euro (€, EUR).
- Labor force: 416,000 (2019).
- Industries: Cyprus’ economy focuses on services, including tourism, finance, and real estate. The valuable industries are shipping, food and beverage processing, textiles, light chemicals, wood, paper, metal, stone, cement, gypsum, and clay.
- Import/Export partners: Greece, China, the UK, Italy, Turkey, and Germany are the top import countries with such commodities as refined petroleum, coal tar oil, ships, cars, and packaged medicines. Cyprus exports cheese, ships, and refined crude petroleum to India, Greece, Libya, and the UK.
- Minimum wage: Cyprus has no general minimum salary requirement except for specific types of jobs. A person working in Executive and Management in Cyprus earns around 3,000 EUR / month. Salaries range from 970 EUR to 4,830 EUR, the actual maximum wage is higher.
- 13,14th salaries: 13,14 salaries are not obligatory in Cyprus, they are optional. The standard practice in Cyprus is for the yearly salary to be split into 12 or 14 payments.
Employ your Selected Workforce in Cyprus via Acumen Global Employer of Record
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 ex-pat employees
Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves both end employers and service companies representing international clients as a global employment organization.
Acumen’s Employer of Record (EOR) service in Cyprus offers an efficient and inexpensive alternative to direct hire. Our solution gives companies the opportunity to operate in Cyprus and in 190 international markets where we serve our clients without registering as a local business entity.
Legally Onboard and Payroll your Employees in Cyprus with Acumen’s Global Employer of Record
Cyprus has its legal constructs that can put you at risk for compliance violations when hiring and onboarding new talent.
The Cyprus legal system is based on English common law principles. The system was updated by introducing civil law principles, aligning with EU laws and regulations. The main difference between the two systems is that common law countries and case law — in the form of published judicial opinions — are of primary importance. In contrast, in civil law systems, codified statutes predominate. This relates to a general understanding of risks.
Reduce risks while expanding your business without establishing your legal entity in Cyprus. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.
Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating their local and ex-pat workforce in Cyprus on their behalf risk-free and cost-effectively.
Partner with Acumen International, and let us help you handle your global employment and HR needs. You can trust Acumen to handle your workforce management’s global employment and HR details in Cyprus to ensure full compliance with in-country employment laws and changing tax regulations.
In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Employer of Record and employ them on your behalf once legal permissions have been attained.
With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Cyprus and 190 countries worldwide where we serve our international clients.