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 Myanmar can be expensive, stressful, and time-consuming. It's not for the faint of heart.
To set up a subsidiary in Myanmar, 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 Myanmar.
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 Myanmar is not the same as paying workers in your own country. Employees have to be paid using Myanmar’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.
A full-time workday is 8 hours. Total hours worked in a week cannot exceed 48.
Overtime is limited to up to 12 hours per week and is paid at the rate of 200% of the regular pay.
The payroll cycle can be paid at any frequency but cannot be longer than monthly.
For employers with less than 100 employees- The pay date is no later than the end of the pay period.
For employers with more than 100 employees- The pay date is no later than 5 days after the end of the pay period.
There are no provisions in the law regarding 13th salaries.
PTO is calculated by the:
There are 16 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Mothers are entitled to 14 weeks of paid maternity leave. The leave can begin 6 weeks from the expected due date and 8 after.
Fathers are entitled to 15 days of paid paternity leave for the birth of a child.
There are no provisions in the law.
Childcare Leave– For multiple births, mothers can take 4 weeks of paid childcare leave immediately after maternity leave ends.
Adoption Leave– Parents can take up to 8 weeks of paid childcare leave for the adoption of a child less than 12 months old.
Casual Leave– Up to 6 days per year. The maximum amount of time that can be taken is 3 days at a time. Unused leave cannot be carried over to the next year.
In the event of a termination of a local employee, the employee’s salary must be paid:
The employer must provide a termination letter in writing.
Before the termination for misconduct, an employee must receive 1 written and 2 verbal warnings. If another violation is made within 12 months of the third warning, an employee can be dismissed without notice or severance pay.
If the employer initiates the dismissal, then wages must be paid within 2 working days from the last day of employment.
The notice period in Myanmar is:
One months’ notice.
Severance pay is determined by the length of employment:
Over 25 years- 13 months’ salary
Probation period is up to 90 days.