Employer of Record (EOR) in Malaysia

An Employer of Record (EOR) is a global service provider that takes over the legal responsibility of employing individuals on behalf of another company. EORs’ main responsibility is handling the administrative and compliance duties of the client, which typically includes payroll processing, tax withholding, benefits administration, and compliance with local labour laws. 

Besides providing services for global businesses, some EORs like Native Teams provide support for individuals like freelancers, remote workers, and digital nomads. With an EOR provider like Native Teams, these individuals can obtain a legally “employed” status and enjoy all the perks of traditional employment in their home country.

The costs for using an EOR provider in Malaysia can be different, depending on factors like the specific EOR provider, the number of employees, and the scope of services required. Native Teams’ EOR services are available in 70+ countries and are recognised for providing flexibility, transparency, and customisation in the pricing structure.

Starting at just €79 per employee per month, every business owner can access an all-in-one solution for hiring, onboarding, and paying global team members, including the whole management of the employment process in compliance with Malaysian labour laws.

In addition to EOR solutions for businesses, Native Teams also supports individuals with legal employment provisions in Malaysia. Our all-inclusive package of employment tools and features for individuals can be accessed starting at only €49 per month.

EOR providers take over the role of legal employer for your company, including the full responsibility for hiring employees, managing payroll, administering benefits, and withholding taxes. As such, EOR providers are mostly advantageous for companies that want to hire team members from different countries but don’t have their own legal entity in the country of employment. 

PEO providers cover only a part of these responsibilities, including HR tasks like payroll and benefits administration. The responsibility for employment management and compliance is shared between the client company and the PEO provider, while the client company remains the legal employer of their new hires. Hence, PEO providers are beneficial for businesses that have their own legal entities in the country of employment but need professional assistance for handling employment management and HR operations.

The main responsibility of EOR providers is to assume the role of the legal employer for your employees in their residential countries. This means that your team members will be legally employed through the legal entity of the EOR provider. The EOR provider will also take over responsibilities like employment contracts, benefits administration, payroll, onboarding and offboarding processes, compliance with local laws, and other key functions.

In simple terms, an EOR provider takes over all the administrative and compliance tasks of employment management and provides additional HR support if needed.

Yes. Using EOR services in Malaysia is absolutely legal. In fact, the main responsibility of EORs like Native Teams is to help businesses and individuals work in compliance with local labour laws. With the help of an EOR provider, every business can compliantly hire, onboard, and pay team members, while solo professionals can regulate their employment status and receive employment benefits in Malaysia.

Opening your own company in Malaysia is a complex and lengthy process that requires a lot of legal expertise and resources. The process includes administrative steps like registering your company with the authorities, obtaining a tax identification number, opening a business bank account, and sometimes even providing a physical office space for your company. 

With an EOR provider, you can eliminate this complex process and hire employees in Malaysia quickly and cost-effectively. By having Native Teams as a legal employer, you can employ any individual through our legal entities in Malaysia and have your payroll, taxes, and employment benefits handled without worrying about local compliance. 

In simple terms, Native Teams will provide you with the required expertise and infrastructure to hire in Malaysia, allowing you to save time and money and focus on your core business duties.