Many persons reach out to us and inquire about the different HR services which we serve in Lebanon. Many clients use the term of manpower, while others use outsourcing, or even staffing. or employer of record. Sometimes they are referring to the same service. So what is the difference between these concepts? We decided to write this article to get you more familiar with all what is related to the concept of employer of record in Lebanon. More articles will follow about other services that our company offers.
So, when we are employers of record, it means that our company is the legal employer and that the employee is officially and legally the employee of the company. He works for the company and the company pays his social security contributions as well as salary taxes. Note however, the employee is listed on our payroll at the request of the client company – who has various reasons to do so, such as not having a local office or a local registration in Lebanon.
So, while the employee is listed on our payroll, his scope of work is to deliver services for another company from which he gets his instructions and the tasks which he has to deliver. The employee’s salary is paid either by our company or directly by the client company. This is a choice which we leave for the company and is strictly a case by case solution.
Many persons use the concept of employee outsourcing service to mean the employer of record service. Well, legally speaking, there is no difference between the the employee outsourcing service and the employer of record service, at least in Lebanon. However, some make the difference, from a business perspective, by considering that employee outsourcing mainly means that the company has started by recruiting its own employees and hired them for a certain period, and then decided to outsource them – for various purposes.
Whatever the case is, please note that the employee outsourcing and the employer of record service have the same effect in Lebanon. The employee ends up being our company’s employee and our company (also sometimes named the admin employer)pays him a monthly salary and takes care of payroll services and all other matters which are legally the responsibility of the employer. The client company (sometimes called the co-employer) will benefit from the services of the employee without having the compliance and HR headache. Let us not forget that these two concepts (employee outsourcing and the employer of record service) are equally and identically applicable for skilled and unskilled employees.
Okay, so what is manpower? Manpower is a global term meaning people available for work, or workforce. In practice, many people use the term manpower services to design people (mainly unskilled) provided by a company for construction or infrastructure projects.
In fact, the term manpower services is much more global and sometimes designate all types of services ( including employee outsourcing, employer record services, as well as staffing) that a company would provide in the field of human resources. So the term manpower (not only in Lebanon, but in any other place) is mainly the general term that refer to the industry, but, in practice, is being used in a much narrower sense.
If you need to learn more about our employer of record services, please visit this page EMPLOYER OF RECORD SERVICES – Newton Workforce.
If you need any further details, we are only one email away. Please contact us at info@newtonworkforce.com. Newton Workforce is a leading employer of record company providing manpower and HR services mainly to multinationals seeking to have employees in Lebanon.