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Singapore EOR
  • By Travis Kliever
  • Updated March 7, 2024
Travis Kliever
Travis Kliever
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Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.
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Employer of Record (EOR) in Singapore

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VERDICT: The best Singapore EOR in 2024 is Horizons. Horizons is the leading Singapore Employer of Record for its depth of expertise in Singapore hiring and HR compliance. 

Key Takeaways

  • A Singapore Employer of Record (EOR) helps international companies to hire employees in Singapore.
  • A Singapore EOR takes over employment compliance, payroll and HR, leaving client companies to focus on what matters.
  • The Five top Singapore EOR companies are Horizons, Acvian, Skuad, Deel and Remote. 

Global companies that hire in Singapore can benefit from a Singapore Employer of Record (EOR) solution. This guide explains what a Singapore EOR is, what services it provides, and how it can benefit your company. 

What is a Singapore Employer of Record?

In Singapore, an Employer of Record (EOR) is a business entity or service provider that takes on the legal responsibilities and obligations of being an employer on behalf of another company. The primary function of an EOR is to handle various employment-related tasks and statutory requirements, allowing companies to expand their operations and hire employees in Singapore without establishing a legal entity or a local presence. Singapore EOR is sometimes used interchangeably with the term ‘Singapore Professional Employer Organization’ (Singapore PEO). 

When a company engages an Employer of Record in Singapore, the EOR becomes the official employer of the company’s workers in terms of legal and administrative matters. The EOR handles payroll processing, tax withholding, benefits administration, statutory contributions, and compliance with local employment laws and regulations.

By partnering with an Employer of Record, companies can effectively outsource the complexities and administrative burdens associated with employment, enabling them to focus on their core business activities. This arrangement benefits companies looking to enter the Singaporean market quickly, test the market viability, or engage in short-term projects without setting up their legal entity.

It’s important to note that an Employer of Record’s specific services and scope may vary among providers. Some EORs offer additional services such as recruitment, onboarding, termination support, and employee management, while others may focus solely on payroll and compliance-related tasks. When considering an Employer of Record, it is crucial to clarify the services offered and ensure they align with your business needs.

How does a Singapore Employer of Record work?

A Singapore Employer of Record (EOR) typically offers a range of services to assist companies in their employment-related obligations and compliance. While the specific services may vary depending on the provider, here are some common services offered by Singapore EORs:

  1. Payroll Processing: The EOR handles payroll administration, including calculating wages, processing payments, and managing statutory deductions such as taxes and contributions.
  2. Compliance with Employment Laws: The EOR ensures compliance with Singapore’s employment laws and regulations, including employment contracts, leave entitlements, working hours, and statutory benefits. Similarly, it takes care of employment taxation and statutory contributions: The EOR handles tax withholding and reporting, as well as the submission of statutory contributions, such as the Central Provident Fund (CPF) contributions for Singaporean employees.
  3. Employment Contracts and Documentation: The EOR assists with preparing and managing employment contracts, offer letters, employee handbooks, and other necessary documentation.
  4. Work Permit and Visa Support: If hiring foreign employees, the EOR can assist with work permit applications, visa processing, and other immigration-related matters. Read more in our guide to Singapore work visas. 
  5. HR and Administrative Support: Some EORs provide additional HR support, such as employee onboarding, performance management, disciplinary actions, and employee relations guidance.

It’s important to note that the specific services offered may vary among EORs. Companies should carefully evaluate the services provided by different EORs to ensure they meet their specific needs and requirements.

How to engage a Singapore Employer of Record

Engaging a Singapore Employer of Record (EOR) typically involves a step-by-step process to establish a working relationship. Here’s a general guide on how to engage an EOR in Singapore:

  1. Identify Your Business Needs: Determine your specific requirements and objectives for engaging an EOR. Consider factors such as the number of employees, desired services, budget, and timeline.
  2. Research and Shortlist EOR Providers: Conduct thorough research to identify reputable EOR providers in Singapore. Consider their experience, track record, range of services, pricing structure, and client reviews. Check out our list below to learn more about the top Singapore EORs. 
  3. Evaluate Services and Contracts: Contact the shortlisted EOR providers and request detailed information about their services, including the scope, pricing, contractual terms, and additional fees or charges. Review the contracts carefully, paying attention to key terms and conditions. Request proposals from the selected EOR providers outlining their services, pricing, and any additional information you require. Seek clarification on any areas that need more explanation or customization to align with your business needs.
  4. Conduct Due Diligence: Perform due diligence on the EOR providers, including verifying their credentials, reputation, compliance with local regulations, and potential legal or financial issues. It may be helpful to ask for references or case studies from their existing clients.
  5. Select an EOR Provider: Evaluate the proposals and comprehensively analyze the shortlisted EOR providers. Consider service quality, reputation, pricing, contractual terms, and compatibility with your business needs. Choose the EOR provider that best meets your requirements.
  6. Negotiate and Sign the Agreement: Negotiate with the chosen EOR provider to finalize the contractual terms and ensure they align with your expectations. Seek legal advice, if necessary, to ensure a comprehensive and fair agreement. Once you are satisfied, sign the contract to formalize the engagement.

It’s important to note that engaging an EOR requires careful consideration and due diligence. Each process step should be approached with thorough research and an understanding of your business needs.

What are the benefits of a Singapore Employer of Record?

Engaging a Singapore Employer of Record (EOR) offers several benefits to companies looking to expand their operations or hire employees in Singapore. Here are some key advantages of using an EOR:

  1. Market Entry without Establishing a Legal Entity: Engaging an EOR allows companies to enter the Singaporean market quickly and start hiring employees in Singapore without the need to establish a legal entity or incorporate a local company. This significantly reduces the time, cost, and administrative burden of setting up a full-fledged presence in Singapore.
  2. Compliance with Employment Laws and Regulations: Singapore has a complex and highly regulated labor environment with various employment laws, tax requirements, and statutory obligations. EORs specialize in local employment regulations and ensure compliance, reducing the risk of legal penalties or non-compliance issues. By transferring legal employer responsibilities to the EOR, companies reduce the risks associated with employment-related disputes, lawsuits, or regulatory non-compliance. The EOR assumes the liability and responsibility for employment matters, providing peace of mind to companies.
  3. Speed and Agility in Hiring: With an EOR, companies can rapidly expand their workforce in Singapore. The EOR takes care of the hiring process, including employment contracts, onboarding, and necessary paperwork, enabling swift and efficient recruitment of employees.
  4. Flexibility and Scalability: Engaging an EOR provides flexibility in workforce management. Companies can easily adjust their headcount or workforce size based on business needs, project requirements, or market conditions without the complexities associated with hiring, firing, and related legal obligations.
  5. Local Expertise and Support: EORs possess in-depth knowledge of local labor laws, regulations, and market practices. They offer guidance and support on employment-related matters, such as benefits administration, leave entitlements, work permits, and visa requirements, ensuring compliance and seamless operations.
  6. Cost Efficiency: Engaging an EOR can be cost-effective compared to establishing and maintaining a complete local entity. It eliminates expenses associated with setting up offices, hiring HR personnel, investing in HR systems, and ongoing administrative overheads.

To determine if engaging an EOR is the right choice for your company in Singapore, it’s essential to consider the benefits of your specific business goals, requirements, and the services offered by the EOR providers.

What are the disadvantages of a Singapore Employer of Record?

While engaging a Singapore Employer of Record (EOR) offers numerous benefits, it’s also important to consider potential disadvantages. Here are some disadvantages to be aware of:

  1. Reduced Control over HR and Employment Matters: By relying on an EOR, companies relinquish some control over HR and employment-related decisions. The EOR becomes the legal employer, which means companies may have limited control over hiring, termination, employee management, and other HR functions.
  2. Dependency on a Third Party: Companies relying on an EOR depend on the services and performance of the EOR provider. Any issues, delays, or mistakes on the part of the EOR can impact the company’s operations and reputation.
  3. Limited Flexibility in Employment Practices: Companies using an EOR may have limited flexibility in implementing specific employment practices or policies. The EOR must comply with local labor laws and regulations, which may restrict certain employment practices desired by the company.
  4. Potential Cultural Differences: When working with an EOR, there might be cultural differences between the EOR’s team and the company’s culture. This could affect communication, understanding of business needs, and alignment of values.
  5. Transfer of Legal Employer Responsibility: While transferring legal employer responsibility to an EOR can mitigate certain risks, the ultimate responsibility for compliance still rests with the company engaging its services. Companies should ensure that the chosen EOR is reputable, reliable, and compliant with local regulations.

It’s essential to assess these potential disadvantages in the context of your company’s specific needs, priorities, and risk tolerance. Careful evaluation of the EOR provider’s services and contractual terms will help mitigate potential disadvantages and ensure a successful working relationship.

Top 5 leading Singapore Employers of Record

  1. Horizons excels in supporting businesses with their international expansion, providing tailored EOR services and business consultations. Founded in Singapore, their localized expertise can be highly advantageous in navigating Singapore’s sophisticated business environment, allowing companies to focus on strategic growth activities rather than administrative tasks. Unlike some other Singapore EORs, Horizons does not sub-contract and hires employees directly in Singapore. For its comprehensive Singapore hiring solutions, Horizons is the best Singapore EOR. 

  2. Acvian is a leader in global employment solutions, spanning from Employer of Record, to payroll outsourcing and visa support services. With its ability to support businesses of all sizes and through every form of expansion, Acvian is a leading Singapore EOR. 

  3. Skuad provides a platform for global employment and payroll, facilitating compliant hiring in Singapore without the need for a local entity. The service simplifies legal, HR, and tax compliance, which is beneficial in Singapore’s complex and strict regulatory environment. They also offer a digital-first experience, aligning well with Singapore’s tech-forward business landscape.

  4. Deel simplifies international hiring by handling compliance, payroll, and benefits through its platform. For companies looking to hire in Singapore, Deel can be advantageous due to its ability to automate payroll in over 120 currencies, including the Singapore Dollar. Deel’s ability to adapt to varying employment laws and regulations across the world and ensure compliance is a key selling point in Singapore’s stringent regulatory framework.

  5. Remote assists businesses with global hiring, payroll, benefits, taxes, and compliance. Their speciality lies in their proprietary global employment infrastructure which ensures legal and HR compliance. In Singapore, known for its rigorous legal system, this ensures businesses can remain confident about staying within the bounds of local regulations. 

Singapore Employer of Record — choose wisely

Engaging a Singapore Employer of Record (EOR) can offer significant advantages for companies looking to expand their operations or hire employees in Singapore. The EOR takes on an employer’s legal responsibilities and administrative burdens, allowing companies to focus on their core business activities. Benefits of using an EOR include market entry without establishing a legal entity, compliance with employment laws, HR and payroll administration, flexibility in hiring and scaling, risk mitigation, local expertise, and cost efficiency.

When choosing a Singapore EOR partner, we recommend carefully considering their experience in that hiring market and whether they provide services directly there. 

FAQs

No, EORs can benefit both new market entrants and established companies. While EORs are commonly used by companies entering a new market to bypass the need for setting up a legal entity, they can also be advantageous for established companies. EORs provide flexibility and scalability, allowing companies to quickly expand their workforce, manage short-term projects, or test market viability without the complexities of traditional employment setup. Additionally, EORs can assist established companies with local compliance, payroll administration, and HR support, freeing up resources and enabling focus on core business activities.

While both EORs and Singapore Professional Employer Organizations (PEOs) provide employment-related services, and sometimes the terms are used interchangeably, a Singapore EOR becomes the legal employer for your workforce in Singapore. 

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