Navigating the complexities of overseas hiring: A case study of Singapore

As an HR professional with over a decade of experience, I have encountered countless cases. In recent years, with the global recovery from the pandemic, the demand for overseas expansion has increased for many companies, which means more overseas recruitment work.

Overseas recruitment has always been a pain point for HR professionals based in China. The time difference, cultural differences, and differences in work habits between candidates and HR can be difficult to overcome. Similarly, communication with HR can also be a challenge for candidates. Language and culture aside, many systems that require online operation or login have a default language of Chinese, which requires time for translation and confirmation.

In addition, how to legally hire and pay employees overseas is a question that every company needs to consider first. Regardless of the form of employment, it is necessary to provide?guarantees for employees, which is what a qualified company needs to do.

Using Singapore as an example, I hope to provide some inspiration for HR professionals:

After registering a company in Singapore, recruiting employees is a top priority. When recruiting employees in the country, it is necessary to comply with local labor laws. The Singapore Labor Law was established to regulate and protect the interests of employers and employees, and also clarifies the responsibilities and obligations of employers, such as signing employment contracts. Employers must comply with the terms and conditions specified in the employment contract. If you are not familiar with Singapore's employment regulations, it is best to hire a lawyer or HR consultant with professional knowledge to assist you. In addition, employers need to pay Central Provident Fund (CPF) and Skills Development Levy (SDL) for their employees. If you are recruiting employees who are Singapore citizens or permanent residents, CPF contributions are mandatory. Employers must ensure that they activate their CPF accounts immediately to avoid missing any payments. SDL is a mandatory levy that companies must pay for all employees (including foreign employees and temporary employees). SDL is calculated at a rate of 0.25% on the first S$4,500 of each employee's monthly gross salary, with a minimum of S$2 (for those with a total salary of S$800 or less). In addition, employers must prepare tax forms for all employees by March 1 of each year. These forms are used by employees to file individual income tax returns with the Inland Revenue Authority of Singapore (IRAS) in accordance with the Singapore Income Tax Act.

The complexity of overseas employment is beyond imagination, especially for small and medium-sized enterprises. If you have any questions, please feel free to contact us.

Overseas recruitment can be a daunting task, but it is essential for companies looking to expand their global footprint. By understanding the local labor laws and regulations, and working with a reputable HR partner, companies can mitigate the risks and ensure a smooth and successful recruitment process.

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