Employee without a company

[dllaverias]

In this day and age, many Companies hire employees remotely in a country where they do not have a legal entity. How do you set employee's up if you don't have a legal entity for that country in the system? Do you create a "placeholder Company" in that country? Do you tie them up to another parent company that handles their expenses?

[nlgro023 · Accepted solution]

Well ... you always need to fill out something, so you can indeed only pursue 2 approaches (I've used both as my customers differed in terms of business needs).
1. I've created a 'dummy' legal entity that tied those employees together and I've made sure that their location was at least registered in the system to help differentiate in reports and modules
2. Commonly in their contract it does suggest a certain company (for my prior customers they had a legal entity that was global/international) and they were added there + again location was used to help differentiate in reports and modules.

It requires a bit of extra work to get this right for modules like time off (i.e. deviations in business rules, time profiles etc.), compensation (rules/plans etc.), Learning (assignment profiles/roles etc.) etc., but it's proven to be most fitting approach for me.

[dllaverias · Accepted solution]

Thank you for your reply Jasper and confirming part of my theories. To add complexity to this, one other thing I am considering are the interface OUT with payroll (since in my case they should not be a part of ) and the interface IN from Finance since cost centers are created by company, so some sort of logic must exist when assigning them.

[nlgro023 · Accepted solution]

For Payroll In the end that boils down to just having a criteria to filter them out/in. Assuming you use an existing legal entity, you'd at least need a field to filter them out/in (Location or Paygroup are the more common ones).

As there's likely that your cost centers have associations to something (which will in the end tie to a legal entity or if you're lucky to multiple) that may actually dictate which out of 2 options is the best one. I hope your cost centers have something in their code that helps to validate the structure (as mostly certain numbers of a code are only tied to certain locations/legal entities etc.) as that would make it a bit easier to tie the dots. Else I fear that after a replication, tying a cost center to a department or anything else may even become a manual exercise if you don't get any other valid data to help you assess the assignment.