Employer of Record (EOR) and PEO in Saudi Arabia

Saudi Arabia, officially recognized as the Kingdom of Saudi Arabia, Saudi Arabia is one of the world’s fastest-growing economies, with a Gross Domestic Product (GDP) of over $700 billion. Situated at the heart of the Arab and Islamic world, Saudi Arabia is undoubtedly a favorite destination for organizations planning to expand globally because of its booming economy, friendly government policies, and population.

In terms of national competitiveness, Saudi Arabia ranked 36th in 2020’s Global competitiveness report due to Saudi nationals’ commitment to transformational changes in the Saudi Arabian market.

While Saudi Arabia offers numerous benefits for organizations planning to expand into the country in terms of a vast pool of highly skilled talent and a favorable environment for business operations, entering the Saudi market can be challenging due to the complex laws and regulations. However, partnering with an Employer of Record (EOR) in Saudi Arabia or a global Professional Employer Organization (PEO) Saudi Arabia platform enables organizations to enter the Saudi labor market without worrying about the legal risks and responsibilities of operating in the market.

What is an Employer of Record (EOR) in Saudi Arabia?

An Employer of Record (EOR) Saudi Arabia platform enables organizations to hire, onboard, manage payroll, and ensure compliance with the Saudi Arabian employment laws.

Global expansion can be challenging and characterized by several formalities that slow down the expansion process and incurs time and resources. In addition, failing to comply with established laws and regulations puts the organization at risk of getting fined and penalized.

Organizations that partner with an Employer of Record (EOR) Saudi Arabia platform are shielded from legal risks as the EOR acts as the legal employer on behalf of the organization, bearing every employment-related risk and responsibility. The Employer of Record offers services such as:

Hiring contractors and full-time employees,
Onboarding talent,
Managing payroll for global organizations — enabling accurate and timely payments to employees wherever they are in the world.
Administration of comprehensive benefit packages
Ensuring compliance with the Saudi Arabian employment laws.

Benefits of an Employer of Record in Saudi Arabia

An Employer of Record (EOR) Saudi Arabia or a global Professional Employer Organization (PEO) platform enables organizations to carry out all employment-related activities in Saudi Arabia without setting up an entity or a subsidiary. However, Employer of Record platforms generally provides much more for organizations planning to expand or hire in Saudi Arabia. The benefits of a global Professional Employer Organization (PEO) platform in Saudi Arabia include

Hiring and onboarding talent

A primary objective of any organization entering any market, especially the Saudi Arabian market, is hiring and onboarding talent that fits into your organization’s culture. While discovering the perfect talent is challenging, hiring in Saudi Arabia, with its complex employment laws, can be overwhelming. However, partnering with an Employer of Record (EOR) Saudi Arabia platform simplifies the process of hiring contractors and full-time employees. The EOR also enables organizations to onboard talent quickly without any compliance issues.

Efficient payroll management

Payroll management is crucial to every organization that is particular about maintaining and increasing the productivity of their employees. It involves the accurate and timely payment of employees’ salaries and the systematic deductions of statutory remittances such as taxes and social security deductions. While paying employees for local organizations can be challenging, it is a higher level of complexity managing payroll for employees in different countries. However, partnering with a global Professional Employer Organization (PEO) Saudi Arabia platform will ensure that employees quickly receive their payments in their preferred currency wherever they are in the world.

Establishing a team in Saudi Arabia without setting up a subsidiary

Establishing an entity or a subsidiary is a complicated process that involves getting government approvals, renting an office space, and handling all corporate tax requirements. While this process is usually time and resource intensive, partnering with a global Professional Employer Organization (PEO) will enable organizations to compliantly commence business activities without setting up a subsidiary in Saudi Arabia.

Compliance with the Brazilian employment laws

Before an organization can legally operate in Saudi Arabia, it must tick all the boxes regarding compliance with its employment laws. It can be challenging and daunting for global organizations to ensure compliance in Saudi Arabia. Therefore, an Employer of Record platform like Skuad exists to take the burden off organizations and ensure they have a seamless expansion and hiring process in Saudi Arabia. An EOR will ensure that the organization remains fully compliant with the Saudi Arabian employment laws.

Skuad — an Employer of Record in Saudi Arabia

An Employer of Record offers great employment solutions for organizations planning to expand or build a team in Saudi Arabia. It ensures compliance with the employment laws, reduces the expenses required to build a team in the country, and handles the legal requirements of starting business operations in Saudi Arabia. Also, Employer of Record (EOR) Saudi Arabia or a global Professional Employer Organization (PEO) Saudi Arabia platforms like Skuad provide seamless solutions to hiring and onboarding talent and ensure employees get accurate payments on time.

To know more about Skuad, book a demo today.