EOR services in IT in Belarus

We have been providing EOR (Employer of Record) services in the IT sector for over 7 years now. Among our clients in this field are both large international companies and startups at various stages of funding acquisition (investor attraction).

Advantages of EOR in the IT sector in Belarus:

  • Instant Start – literally within 48 hours.
  • Cost Minimization.
  • Rapid candidate onboarding.
  • 24/7 continuous support.
  • Discounted recruiting: We offer discounts on recruiting to all clients who use our EOR service.

Stages of EOR service:

  1. Discussion of financial and other conditions.
  2. Cost calculation for the Client.
  3. Signing necessary contracts.
  4. Recruiting specialists for the Client (if needed).
  5. Candidate onboarding.

Discussion of financial and other conditions with the Client and cost calculation

Typically, we start with this stage. We conduct discussions of the financial and other terms of collaboration via Zoom, Skype, or in-person meetings at our office. During these discussions, we identify all the Client’s needs (EOR, recruiting) and clarify the presence of any specific reports that need to be provided to the Client. Based on these discussions, the Client receives a cost calculation for EOR services per person. If the Client brings in more than 10 employees, we offer discounts.

Signing necessary contracts with the Client

Since we have been in this business for over 7 years, we have all the necessary contract templates and documents for the Client. Typically, we send a package of documents for the Client’s approval. The legal structure of the documents is straightforward, providing the Client with full transparency and understanding of the situation.

Recruiting IT specialists under EOR

We have extensive experience in recruiting in Belarus and offer special conditions for recruiting to our EOR clients. The timeline for recruiting greatly depends on the level of the specialist and the state of the market. Sometimes we can fill vacancies within a few days, while other times it may take a month or more. As you know, recruiting also depends on the state of the market.

Candidate Onboarding for Clients

Candidate onboarding happens quite quickly. If necessary, we always coordinate the text of the employment contract with our clients in advance. In such cases, the client is provided with the contract text along with a detailed explanation. Most often, we hire candidates on a contract for 1 (one) year with a preliminary 3-month probationary period.

Employee Insurance and Other Benefits

To ensure employee comfort, we are always ready to provide additional services such as life and health insurance, sports compensation, fuel compensation, and more. We are open to discussing any additional benefits that the company may compensate or provide to the employees.

EOR Practice in Belarus

Considering our extensive experience in this field, we aim to highlight the key features of EOR practice in the Republic of Belarus, which include:

The absence of a definition of EOR services and staffing services in the legislation of the Republic of Belarus.

Our team has developed frameworks and obtained all necessary clarifications from regulators to provide such services to our clients. You can be fully assured that our partnership will be entirely legal and legitimate.

The presence of a memorandum/agreement on an insurance deposit for each candidate.

In addition to signing an MSA (master service agreement) with our clients, we also sign an insurance agreement in which the client commits to making an insurance deposit equivalent to one month’s salary of the employee, including all taxes and banking fees. This deposit is used by us in cases of employee termination for final settlement, payment of vacation pay, or covering sick leave payments. Since we invoice our clients once a month, there is often no opportunity to receive money from clients on short notice, which is why the insurance deposit is utilized.

Medical insurance and a social package.

As mentioned earlier, we can organize medical insurance and various compensation and bonuses for the client’s employees. Often, medical insurance in the Republic of Belarus does not offer the same extensive coverage as in Europe or the United States, so the practice of providing “Health money” is common, where we pay the employee an equivalent amount of their annual insurance coverage as a premium. We can also organize coworking space rental or rent a separate office for the client’s employees. Our team can handle many internal processes of the client’s company for their employees under EOR conditions. These may include branded “welcome packs,” greetings for themed holidays, and team-building activities. HR/recruiting outsourcing can also be arranged, integrated into the client’s company, and responsible for all HR processes within the client’s team.

Currency Linkage of Employee Employment Contracts.

This is a common practice in the IT sector in Belarus. Employment contracts rarely specify salaries only in Belarusian rubles. Most employees prefer to see their salaries linked to euros or US dollars. This preference arises due to the strong volatility of the Belarusian ruble. In agreement with the client, we specify the employee’s salary amount in euros or US dollars in employment contracts and calculate it according to the exchange rate of the National Bank of the Republic of Belarus (NBRB) on the last day of the month for which the salary is paid.

It’s worth noting that, according to Belarusian legislation, we are obliged to calculate the salary based on the NBRB rate, but we sell foreign currency at a private bank, where the rate is lower than the NBRB rate (it should be reminded that the employee will receive the salary according to the NBRB rate, and in practice, we receive less in Belarusian rubles to our account). Therefore, currency differences arise, which the client must also cover (in practice, for a salary of $4,000 USD, the currency difference amounts to no more than $50 USD).

Additionally, there is an option to use a special banking solution that allows for automatic conversion of the allocated Belarusian rubles to the employee’s euro or US dollar account at the NBRB exchange rate, which is a more convenient solution for the employee and reduces losses due to exchange rate differences.

Providing Equipment to Client Employees

This issue is quite complex in its implementation, and each of the solutions is not ideal. We always offer clients several options, and the client chooses the most suitable one:

  • Renting equipment that is available in our company’s possession (primarily Apple MacBook Pro (M1) and Lenovo Extreme series with Windows OS, 24″ Dell monitors, keyboards, mice). Unfortunately, the quantity of such equipment is limited, and it needs to be checked what is available at the time of starting the cooperation.
  • Renting equipment from third-party suppliers. The drawbacks of this option include high service costs, mandatory insurance payments, which also increase the final cost of the service, and the absence of many such vendors in the Belarusian market.
  • Purchasing equipment using the client’s funds. The only drawback is that the equipment will be listed on our company’s balance sheet, and it can be challenging to transfer the equipment to the client when the cooperation ends or the client’s employee leaves. The solution is to sell the equipment, but this takes some time, and there may be a lack of demand in the secondary market.
  • Purchasing equipment using the client’s funds in the name of the employee. In this case, we pay a bonus to the client’s employee, and they acquire the equipment privately. The risk for the client is that they may lose the equipment when terminating the employment relationship with the employee, as the equipment purchased effectively becomes the employee’s personal property.
  • The client can personally deliver the equipment to our office. If the client has the opportunity, they can send the equipment through a courier service to our office, and we will provide it to the employees.

Roadmap and Timeline

Let’s assume that the employee’s start date is planned for the 1st day of the month.

  • Before this date, we must sign all necessary documents with the client and receive payment for the insurance deposit. Afterward, we proceed with the onboarding of the client’s employee.
  • By the 15th day of the current month, we send an invoice to the client.
  • The client pays the invoice by the 25th day of the current month.
  • From the 1st to the 10th day of the month following the payroll month, we process salary payments to the client’s employees.

It’s worth noting that salary payments are made once a month, and according to Belarusian legislation, it is not possible to pay the salary in the same month for which the payment is being processed. In other words, it is impossible, for example, to hire an employee on October 1st and pay their salary for October on October 31st. This can only be done from November 1st to November 10th.

Why Choose Spex Advisers as Your EOR Provider in Belarus?

EXPERIENCE. We have ample experience to provide quality service to our clients.

TRANSPARENCY and CUSTOMER ORIENTATION. We are always ready to accommodate the client and find the most suitable solution.

COST OF SERVICES. Fair and market-driven prices from a direct EOR service provider.

FLEXIBILITY. Our clients can implement all possible additional services with our support, as long as they comply with Belarusian legislation.

DISCOUNTS. If you are our regular client, you can always count on this.

Contact Us

Write to us at info@spex.by or call us at +375293664477. We will be delighted to realize your project in the Republic of Belarus!

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