Overview
Justworks has been simplifying payroll, benefits, and HR for small businesses since 2012, supporting teams across all 50 U.S. states. We have now expanded globally to provide a user-friendly platform for managing international workforces, all backed by award-winning customer support.
Here’s what employers and employees need to know about transitioning to Justworks as your Employer of Record (EOR).
What to Expect During the Transition As An Employer
When transitioning employees to Justworks as your new Employer of Record, it is essential to consider specific compliance and operational aspects. Here’s a breakdown of what to expect:
The Resign and Rehire Process
We use a ‘resign and rehire’ method to transition employees, ensuring a seamless process without gaps in employment. However, essential compliance steps are required.
Employment Agreement Compliance
All amendments to employment agreements must comply with the labor laws of the employee's country. These agreements should align with the specific risk framework for operating as an Employer of Record (EOR). Justworks can assist in crafting a compliant employment agreement.
Contractual Continuity
Employee agreements with Justworks must replicate the terms and benefits of their contract with the previous EOR provider. Benefits offerings must meet or exceed the prior coverage to ensure no loss of entitlements.
Seniority Recognition
Recognizing employees’ seniority for statutory benefits (such as maternity and paternity leave) is crucial. The method for recognition depends on the country:
- In some cases, seniority can be directly acknowledged within the new employment agreement.
- In others, recognition must be indirect, either within the agreement or upon termination.
Handling Final Payouts and PTO
Employers must handle employees’ accrued benefits with their previous EOR provider before transitioning to Justworks. This includes vacation time, severance, and other accrued entitlements. You have two options:
- Utilize Accrued PTO Before Transitioning
Employees can use their remaining PTO prior to switching. This allows them to rest and avoids the operational complexities of unpaid leave after transitioning. - Payout Accrued PTO with the Previous Provider
Pay out all accrued unused PTO prior to the switch. Employees can then take the same number of days off with Justworks as unpaid leave.
Transparent Communication
Being transparent with employees is essential. Employers should communicate any changes to their benefits packages, making sure employees understand how these changes compare to what was offered by the previous Employer of Record (EOR) provider. It's important to clearly outline the benefits of the transition and to reassure employees that their rights and benefits will remain uninterrupted.
What to Expect During the Transition As An Employee
Our team helps make switching to Justworks as simple as possible for you and your employer! Here’s what you can expect:
Account Setup
You’ll receive an email invitation to create your Justworks account. Simply follow the instructions to set everything up.
New Employment Agreement
Justworks will issue a new employment agreement for you to sign, effective from your Justworks start date.
Formal Resignation
You’ll formally resign from your current EOR provider as of your start date with Justworks.
Final Payments
Your previous EOR will handle any final payments, including PTO, severance, or bonuses, if applicable.
First Paycheck
Your first paycheck through Justworks will be processed shortly after your onboarding is complete.
So What Stays the Same?
We prioritize continuity and ensure the employment terms remain consistent throughout the transition:
- Seniority and Benefits
An employee’s years of service, leave entitlements, and other accrued rights remain intact. Additionally, we focus on providing top-tier benefits as well as ensuring a seamless transition without any loss or lapse in coverage. - Compensation and Management
The employer will continue to oversee the employee’s pay, performance, and schedule. - Pension and Retirement Plans
Where applicable, existing arrangements will carry over seamlessly.
With Justworks, you can:
- Easily access pay stubs, tax documents, and your personal information.
- Submit PTO requests directly to your manager.
- View important documents, such as your employment agreement.
- Rely on award-winning customer support for any account-related questions.
How the ‘Resign and Rehire’ Process Works
To ensure compliance and continuity, employees will formally resign from their current Employer of Record (EOR) provider and start with Justworks the following day. This process guarantees that there is no gap in their employment and allows their accrued rights and benefits to transition smoothly.
Should anything come up, our expert International Onboarding team, specializing in such scenarios, are here to help with any questions along the way.
Benefits of Justworks as Your EOR
Justworks takes care of the administrative aspects of employment, allowing teams to focus on their objectives. While the company manages daily responsibilities such as paid time off (PTO) and salaries, we handle:
- Payroll
- Benefits administration
- Tax filings
This collaboration ensures compliance, dependable service, and comprehensive benefits.
Ready to Switch?
If you're ready to join Justworks or have any questions, contact us:
📞 Phone: (855) 661-9022
📧 Email: hello@justworks.com
Start working fearlessly around the world with Justworks!
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.