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How to hire remote employees in
Laws about hiring are complicated, and the same is true in Laos. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Laos, you have two real options when it comes to hiring. We’ll detail both below.
If you want to successfully hire in
Laos
, you have two options:
Laws about hiring contractors are significantly more simple in
Laos
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Laos
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Laos
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Laos
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Laos
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Laos than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Laos.
An employee is entitled to 15 days' paid annual leave per year, if they have both:
There are 7 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Female employees are entitled by law to receive full wages in case of maternity leave, which can range from 90 to 105 days, or 120 days in the case of multiple births.
In the event of miscarriage, female employees are also entitled to maternity leave, with the number of days to be determined by the attending physician.
Male employees are entitled to take at least three days' paid leave if their wife gives birth or miscarries (Article 58, Labour Law).
Employees are entitled to up to 3 days of leave if the employee’s father, mother, spouse, or child is injured and hospitalized, and there is nobody to take care of them.
Jury Duty Leave and Voting Leave (Leave due to Public Interest) - Not specified by law.
Military Leave -Not Specified by law.
Not Specified by law.
Employees are entitled to up to 3 days of paid leave if the employee’s father, mother, spouse, or child passes away.
The employment will be terminated when one of the following conditions is met:
There is no defined notification period for a fixed-term contract, and such terms are generally agreed upon in the employment contract.
With respect to an indefinite-term contract, each party may terminate the contract at any time provided notification is provided to the other party at least 30 days in advance for contracts involving physical labor employees, and at least 45 days in advance for contracts involving employees who use intellectual/special skills.
Alternatively, the employer can choose to make payment in lieu of notice to the employee who will be terminated.
The Labor Law provides for severance payments to be made for the following types of termination of employment:
The notice period in Laos is:
There is no defined notification period for a fixed-term contract, and such terms are generally agreed upon in the employment contract.
The Labor Law provides for severance payments to be made for the following types of termination of employment:
Probation period may not exceed 30 days.
The Labor Law limits working hours to 48 hours per week.
Work that is performed beyond this limit will be considered as overtime.
Likewise, the law provides that an employee cannot work more than six days per week and eight hours per day.
According to the Labor Law, overtime cannot exceed three hours per day or 45 hours per month.
In addition, an employee cannot work overtime for more than four consecutive days, except in emergencies.
Overtime wages differ according to the type of overtime, with the Labor Law providing different rates for different days and periods in which the overtime is performed (e.g. overtime on regular days, overtime at night, overtime on public holidays).
With respect to an indefinite-term contract, each party may terminate the contract at any time provided notification is provided to the other party at least 30 days in advance for contracts involving physical labor employees, and at least 45 days in advance for contracts involving employees who use intellectual/special skills.
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