Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.
For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.
For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.
As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.
While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.
A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.
Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Jordan can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Jordan, you have to:
If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Jordan.
An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.
An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.
Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.
At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.
Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:
Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.
Paying employees in Jordan is not the same as paying workers in your own country. Employees have to be paid using Jordan's employment and payroll standards.
This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.
Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.
After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:
One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.
Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.
Outside of EORs acting as the full admin employer, many also provide remote payroll.
For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.
We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.
The standard workweek in Jordan 8 hours per day excluding an hour break, 48 hours per week.
Overtime in Jordan is paid at and minimum rate of 150% of his regular remuneration.
The typical payroll cycle in Jordan are typically paid on a monthly basis.
There is no mandatory bonus in Jordan.
Employees receive between 14 and 21 days of paid annual leave.
There are 10 public holidays.
Employees receive an additional 14 days of sick leave at full pay if hospitalized or half of the employees pay if not hospitalized but supported by a medical report.
A female employee is entitled to 10 weeks of paid maternity leave. At least six weeks of leave must be taken after delivery. She is also entitled to 12 months of unpaid leave for childcare reason
Male employees receive up to three days of paid paternity leave.
The employer and employee can terminate the employment contract. It can be terminated if both parties agree on its termination, the contract expired, work was completed or the employee died or became disabled, which must be proven by a medical report.
Section 21 of the Jordan Labor code deals with termination of employment. According to this section, a contract is considered terminated if:
The party that initiates the termination is required to provide a written termination notice to the other party at least 30 days before the exit date, which cannot be withdrawn unless both parties agree to its withdrawal.
The employee shall be entitled to all the rights, benefits and wages stipulated in the contract until the end of the termination notice period.
The probation period in Jordan has no definite information.