Hire in Belarus through our Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that takes on the legal and administrative responsibilities of employing workers on behalf of another company. This arrangement allows businesses to hire employees in countries where they don't have a legal entity, effectively expanding their global reach without the need to establish a local subsidiary or branch office.

In the context of Belarus, an EOR can be particularly useful for foreign companies looking to tap into the country's skilled workforce or expand their operations in Eastern Europe. By partnering with an EOR, businesses can navigate the complexities of Belarusian labor laws, tax regulations, and employment practices more efficiently.

How Does EOR Work?

The EOR model operates through a series of steps:

1. Client company selection: A business chooses an EOR provider with expertise in the target country, in this case, Belarus.

2. Employee hiring: The client company selects the candidates they wish to hire in Belarus.

3. Employment contract: The EOR becomes the legal employer of the selected candidates, drafting and signing compliant employment contracts.

4. Payroll and benefits administration: The EOR manages payroll, tax withholdings, and social contributions in accordance with Belarusian regulations.

5. HR support: The EOR handles day-to-day HR tasks, ensuring compliance with local labor laws and addressing employee concerns.

6. Reporting and compliance: The EOR takes care of all necessary reporting to Belarusian authorities, maintaining legal compliance.

Throughout this process, the client company retains control over the employee's daily tasks, projects, and performance management.

Benefits of Using an EOR

Employing an EOR in Belarus offers several advantages:

1. Rapid market entry: Companies can quickly establish a presence in Belarus without the need to set up a legal entity, saving time and resources.

2. Compliance assurance: EORs are well-versed in Belarusian employment laws, ensuring that all hiring practices and employment terms are compliant with local regulations.

3. Risk mitigation: By taking on the legal employer responsibilities, the EOR shields the client company from potential compliance risks and liabilities.

4. Cost-effectiveness: Using an EOR can be more economical than establishing and maintaining a local subsidiary, especially for smaller-scale operations or short-term projects.

5. Focus on core business: With the EOR handling administrative and legal aspects of employment, the client company can concentrate on its primary business activities and employee management.

6. Local expertise: EORs provide valuable insights into Belarusian business culture, labor market trends, and best practices for employee engagement.

7. Flexibility: Companies can easily scale their workforce up or down without the complexities associated with direct hiring and termination in a foreign country.

8. Global mobility support: For businesses looking to move employees into or out of Belarus, an EOR can facilitate the process, ensuring compliance with immigration laws and work permit requirements.

By leveraging the services of an EOR, companies can effectively navigate the unique challenges and opportunities presented by the Belarusian market, while maintaining focus on their core business objectives and growth strategies.

Belarus, a country in Eastern Europe, presents a unique employment landscape shaped by its history, demographics, and economic structure. The workforce is well-educated, with a high literacy rate and a strong emphasis on technical and vocational skills. However, the country faces challenges due to an aging population and a shrinking younger workforce.

Overview of Labor Laws

Belarus has a comprehensive set of labor laws that govern employment relationships. The Labor Code of the Republic of Belarus is the primary legislation that outlines the rights and obligations of both employers and employees. Key aspects of the labor laws include:

• Standard working hours are set at 40 hours per week
• Employees are entitled to a minimum of 24 calendar days of paid annual leave
• Overtime work is permitted but must be compensated at higher rates
• There are strict regulations regarding the termination of employment contracts
• Collective bargaining agreements play a significant role in labor relations

Cultural Considerations

Understanding the cultural nuances of Belarus is crucial for successful employment relationships:

• Hierarchy and respect for authority are important in Belarusian workplaces
• Communication tends to be formal, especially in initial interactions
• Direct communication style is common, which may be perceived as blunt by outsiders
• Work-life balance can be challenging, with long working hours often expected
• Building personal relationships and trust is crucial in business settings
• Gender roles in the workplace may still reflect traditional values

Challenges of Direct Hiring

Employers considering direct hiring in Belarus may face several challenges:

1. Bureaucratic hurdles: The process of hiring and registering employees can be complex and time-consuming due to extensive paperwork and regulations.

2. Language barriers: While many professionals speak English, official documentation and communication with authorities are typically in Belarusian or Russian.

3. Understanding local labor laws: Navigating the intricacies of Belarusian labor laws can be challenging for foreign employers.

4. Cultural adaptation: Adapting to local work culture and management styles may require significant effort and understanding.

5. Talent retention: With a competitive job market in certain sectors, retaining skilled employees can be challenging.

6. Compliance risks: Ensuring full compliance with local labor laws, tax regulations, and social security requirements can be complex for foreign companies.

7. Economic uncertainties: The country's economic situation and potential geopolitical factors may impact long-term hiring decisions.

By understanding these aspects of the employment landscape in Belarus, companies can better navigate the challenges and opportunities of hiring in this Eastern European nation.

Belarus has a unique payroll and tax system that involves contributions from both employers and employees. The system is designed to support various social benefits and ensure a stable workforce. Understanding the intricacies of payroll and taxes in Belarus is crucial for both employers and employees to comply with local regulations and manage their financial obligations effectively.

Employer Contributions

Employers in Belarus are responsible for several significant contributions to support their employees and comply with local regulations:

Social Security Contributions (SSC)

The most substantial employer contribution is to the Social Security Fund (SSF), which amounts to 34% of an employee's gross salary. This fund supports various state-provided social benefits, including:

• Pensions
• Sick pay
• Disability benefits

Income Tax Withholding

Employers are required to withhold a flat income tax rate of 13% from their employees' salaries. This withheld amount must be remitted to the tax authorities, typically within the following month.

Mandatory Insurance

To protect employees from workplace accidents and occupational diseases, employers must pay mandatory insurance premiums. The rates for these premiums vary between 0.6% and 3.6%, depending on the industry and assessed risk levels.

Additional Responsibilities

Employers in Belarus also have other payroll-related responsibilities:

• Monthly payroll processing (some industries may use split payments)
• Filing reports with tax authorities and the Social Security Fund
• Adhering to specific deadlines and requirements to avoid fines and penalties

Employee Contributions

While employers bear the majority of the tax burden, employees in Belarus also contribute to various funds:

Income Tax

Employees are subject to a flat income tax rate of 13%, which is calculated based on their gross income. This tax is withheld by the employer and remitted to the tax authorities.

Pension Insurance

Employees contribute 1% of their gross salary towards pension insurance. This amount is withheld by the employer and paid to the Social Protection Fund.

Mandatory Work-Related Injury and Occupational Disease Insurance

Employees also contribute to mandatory work-related injury and occupational disease insurance. The contribution rate varies between 0.1% and 1%, depending on industry-specific risk factors. Employers withhold this amount and pay it to the Belarusian Republican Unitary Insurance Enterprise (Belgosstrakh).

It's important to note that self-employed individuals are responsible for making their own pension and social insurance contributions. Additionally, Belarus has tax treaties with various countries that may affect tax deductions for foreign employees.

Understanding the payroll and tax system in Belarus is essential for both employers and employees to ensure compliance with local regulations and manage their financial obligations effectively. As tax laws and regulations are subject to change, it's advisable to consult with a Belarusian tax professional or check official government sources for the most up-to-date information.

Belarus offers a comprehensive set of employee benefits, combining mandatory provisions with optional perks to create attractive compensation packages. As an Employer of Record (EOR), Rivermate expertly manages these benefits, ensuring compliance with local labor laws while helping companies provide competitive offerings to attract and retain top talent. By partnering with an EOR, businesses can navigate the complexities of Belarus's benefit landscape, focusing on their core operations while leaving the intricacies of benefit administration to experienced professionals.

Mandatory Benefits

• Annual Leave: Employees receive a minimum of 24 days of paid annual leave per year
• Sick Leave: Workers are entitled to 80% of average daily earnings for the first 12 days of illness, followed by 100% thereafter
• Public Holidays: Paid time off for numerous national holidays throughout the year
• Maternity Leave: 126 days of paid leave for new mothers, extendable to 140 days in special cases
• Paternity Leave: Up to 14 days of unpaid leave within the first five months of a child's birth
• Pension: Employer contributions to the national pension plan for retirement income
• Medical Care: Access to state-funded healthcare through the national system
• Unemployment Benefits: Government-provided support for eligible individuals who lose their jobs

Optional Benefits

• Private Health Insurance: Supplemental coverage for wider healthcare access and better facilities
• Accident Insurance: Financial protection for work-related injuries or disabilities
• Wellness Programs: Initiatives promoting healthy lifestyles, such as gym memberships or fitness classes
• Voluntary Pension Insurance: Employer-matched contributions to supplementary pension plans
• Life Insurance: Additional financial security for employees and their families
• Flexible Work Arrangements: Options for remote work, flexible hours, or compressed workweeks
• On-site Amenities: Facilities like canteens, relaxation areas, or childcare services
• Meal Subsidies or Vouchers: Assistance with daily meal expenses
• Transportation Benefits: Subsidies for public transit, company shuttles, or parking allowances
• Training and Development Programs: Investments in employee skill enhancement and professional growth

By offering a mix of these mandatory and optional benefits, companies operating in Belarus can create compelling compensation packages that support employee well-being, foster loyalty, and drive organizational success.

The process of termination and offboarding in Belarus is governed by specific legal requirements that both employers and employees must adhere to. Understanding these procedures is crucial for ensuring a smooth and compliant transition when ending an employment relationship.

Termination Process

In Belarus, employers cannot terminate an employee's contract at will. Dismissal must be based on legally valid grounds as outlined in the Labour Code of the Republic of Belarus. These grounds include mutual agreement, expiration of a fixed-term contract, initiative of either party (with valid reasons), employee transfer, or circumstances beyond the control of both parties.

Notice Requirements

When terminating an employment contract, proper notice must be given:

• For employer-initiated termination, a minimum of one month's notice is typically required
• Employees must provide at least two weeks' notice when resigning
• In cases of mutual agreement, the notice period can be determined by both parties

The notice must be provided in writing, clearly stating the reasons for termination and the effective date.

Severance Pay

Employees dismissed under certain circumstances are entitled to severance pay. The amount generally depends on the reason for termination and the length of service. For instance, if the dismissal is due to company liquidation, staff reduction, or the employee's inability to perform their duties, a severance payment of at least three average monthly salaries is mandated.

Offboarding Process

The offboarding process in Belarus typically involves the following steps:

1. Exit Interview: Conduct an exit interview to gather feedback and ensure a smooth transition.

2. Return of Company Property: Ensure all company assets, such as laptops, access cards, and other equipment, are returned.

3. Knowledge Transfer: Facilitate the transfer of important information and responsibilities to relevant team members.

4. Final Paycheck: Process the final paycheck, including any outstanding wages, bonuses, or unused vacation pay.

5. Documentation: Prepare and provide necessary documents, such as a work reference letter and certificate of employment.

6. Benefits Closure: Handle the termination of employment-related benefits, such as health insurance and pension contributions.

7. Access Revocation: Remove the departing employee's access to company systems, email, and facilities.

By following these procedures, employers in Belarus can ensure compliance with local labor laws while maintaining a professional and respectful offboarding process. It's important to note that employment contracts and collective bargaining agreements may provide more favorable terms for employees, including longer notice periods or more generous severance packages.

Belarus has specific visa and work permit requirements for foreign nationals seeking employment in the country. Here's an overview of the key points to consider:

Visa Requirements

Foreign workers typically need to obtain a work visa before entering Belarus. The process usually involves:

1. Securing a job offer from a Belarusian employer
2. Obtaining an invitation letter from the employer
3. Applying for a work visa at a Belarusian embassy or consulate in their home country

Work Permit Process

Once in Belarus, foreign workers must obtain a work permit. The main steps include:

1. The employer applies for a special permit to hire foreign workers
2. Upon approval, the employer then applies for the employee's work permit
3. The work permit is usually valid for one year and can be renewed

Registration

Foreign workers must register with local authorities within five days of arrival in Belarus. This can often be done through the employer or the hotel where they're staying.

Important Considerations

• The entire process can take several weeks to a few months
• Some professions may require additional documentation or certifications
• Citizens of certain countries may have different requirements due to bilateral agreements

Employer of Record Solution

Using an Employer of Record service like Rivermate can significantly simplify the process of hiring foreign workers in Belarus. We handle the complex visa and work permit procedures, ensuring compliance with local regulations and allowing companies to focus on their core business activities.