Compliance Without Complexity: Managing Multi-Country HR Operations

Companies hiring across borders gain access to diverse, specialized skills. However, this also poses significant compliance challenges. In fact, the 2024 Getting the World Paid survey found that 63% of companies see compliance as a major challenge when managing a global workforce.

To succeed in international markets, businesses must adhere to varying regulatory frameworks regarding taxation, payroll, data security, employee classifications, and social security contributions. Non-compliance can lead to legal and financial risks, including steep fines, lawsuits, reputational damage, and other costly penalties. 

It’s why HR software for multi-country compliance has become a necessity. These tools automate routine administrative tasks, align with local labor laws, and stay current with evolving employment regulations across various regions.

In this guide, we explore strategies to streamline compliance when expanding internationally or improving your multi-country HR operations. Inside, you’ll discover the best HR platform for growing companies and how these tools support business growth across Asia and beyond.

Managing Compliance Across Borders

Managing HR operations across Southeast Asia can be complex, especially for businesses expanding into the region. Each country has its own local employment laws covering critical areas, such as taxation, data privacy, minimum wages, salaries, overtime, benefits, employment permits, and termination. Navigating these nuances is challenging. Without careful attention to detail, non-compliance issues can quickly spiral into costly legal and financial consequences.

For example, while Singapore’s Employment Act governs the entire country’s labor market,  Malaysia’s Employment Act 1955 only applies to Peninsular Malaysia, as Sabah and Sarawak have different labor laws. These legal disparities can easily result in employee misclassification, particularly during the hiring process. 

When companies misclassify employees as independent contractors, they risk depriving workers of essential benefits like paid leave, healthcare, and unemployment insurance. In countries like Vietnam, companies that misclassify workers and fail to withhold their personal income tax may face a 20% penalty on underpaid taxes with a 0.03% interest per day. 

Similarly, the Singaporean government is paying closer attention to organizational compliance, especially regarding employee classifications. For example, in September 2024, the Singaporean Parliament passed a landmark bill offering ride-hailing drivers the same privileges as employees. The law mandated the platforms to provide drivers with work injury compensation and Central Provident Fund (CPF) savings. Failure to comply can lead to hefty fines, and in severe cases, regulatory audits, lawsuits, and reputational damage that can hinder business success.

These examples highlight the growing regulatory scrutiny toward compliance failures. To manage these risks, businesses operating in SEA need systems built for compliance. And that’s where HR software for multi-country compliance becomes imperative.

A Human Resource Information System (HRIS) for distributed teams Asia is essential to avoid such sanctions and build a legally compliant business across SEA. It automates local labor laws, properly classifies employees, manages their records, and stays updated with country-specific regulations on payroll, benefits, and data privacy. Below, we examine how these tools ensure compliance across SEA countries.

How HR Software for Multi-Country Compliance Can Help

Automated compliance

HR software for multi-country compliance helps businesses across Southeast Asia comply with local labor laws by automatically applying region-specific rules. These systems adapt to regulatory requirements covering working hours, overtime, statutory benefits, and tax deductions. Additionally, they automatically update to reflect legal changes in each jurisdiction, preventing HR teams from applying outdated policies or manually updating systems. 

HR software for multi-country compliance also has built-in compliance checklists and localized templates to ensure HR teams meet local reporting and documentation standards easily. Additionally, these platforms monitor changes in employee status, such as employee promotions or moving from probation to full-time employment, and automatically update payroll to reflect these changes. This reduces the risk of errors, legal penalties, and employee disputes across different countries.

Seamless statutory deductions

In Southeast Asia, employers are responsible for withholding taxes and social security contributions for employees. But following every country’s rates, withholding requirements, and filing deadlines can be difficult, and mistakes can lead to costly penalties. HR software for multi-country compliance eases this burden. It ensures correct tax withholdings and mandatory contributions according to each country’s specified rates and statutory deduction rules.

EPF Calculator

For instance, an HR management system in Singapore ensures correct IRAS tax filings at the specified 17% flat rate and automates accurate CPF deductions. In Malaysia, HR software for multi-country compliance deducts taxes at the standard corporate rate of 24% and statutory contributions like the Employment Insurance System (EIS), Employees Provident Fund (EPF), and the Social Security Organization (SOCSO). 

CPF Calculator

These automated calculations improve payroll accuracy and ensure continuous compliance across multiple regions.

Additional resources: Global Employer of Record Guide for Singapore

Accurate payroll processing

Accurate salary calculations and timely payouts are critical for compliance. However, it becomes challenging when managing teams across countries with different minimum wage laws and currencies. HR software for multi-country compliance simplifies this by localizing payroll processes to each jurisdiction. 

In the Philippines, for instance, these tools calculate payroll based on the country’s minimum wage of approximately PHP 645 while considering standard work hours, overtime pay, and public holidays. Through a secure and centralized employee database, HR teams can quickly access updated employee records and vital documents to ensure accurate and consistent payments.

With features like automated tax calculations and statutory deductions, an HRIS for distributed teams Asia helps SEA companies reduce payroll errors and comply with strict employment requirements across the region.

Safeguards employee data

HR software for multi-country compliance helps businesses abide by the data privacy laws governing each region in Southeast Asia. These platforms usually have strong data protection systems that safeguard employee payroll information, including: 

• End-to-end encryption—for confidentiality when sharing data between devices.
• Access controls like passwords, biometric passwords, and two-factor authentication.
• Using secure cloud storage solutions like Google Drive.

Read more: How HRIS Supports Compliance and Risk Management for FinTechs

How Milieu Insight Achieved Multi-Country Compliance with Omni HR

Milieu Insight, a leading market research technology in Southeast Asia, struggled to manage HR operations across six countries. Their old system lacked customizable reporting features and couldn’t maintain consistent HR processes across different locations. Additionally, the support was slow and didn't understand local labor requirements and Milieu Insight’s business needs. This made it difficult for the company to comply with the varying employment laws in each region and achieve smooth operations. 

Outcomes with Omni HR

After exploring the market for the best HR software for multi-country compliance, Milieu Insight made a well-informed decision by choosing Omni. With Omni’s flexible configuration options for different countries, Milieu Insight gained a smarter market entry, achieving the following results:

• Maintained consistent HR processes across all regions with customizable reporting and configurable workflows while meeting country-specific requirements.
• Reduced implementation and troubleshooting delays due to Omni’s responsive regional support and expertise.
• Stayed compliant with employment laws as the company scaled into new markets, ensuring smooth multi-country HR operations.

Learn more: Milieu Insight Runs 85% Faster Multi-Country HR Operations with Omni

Best HR Platform for Growing Companies

Omni

Omni is an all-in-one HR software for multi-country compliance designed to support growing businesses across Asia and beyond. It offers a comprehensive suite of modules to manage the entire employee lifecycle, from hiring and onboarding to payroll and compliance, while ensuring adaptability to local regulations and global standards. 

Automated compliance and real-time regulatory updates

Omni integrates built-in local tax calculators and statutory reporting tools, enabling businesses to process payroll accurately across multiple Asian countries. 

Compliance regulations are constantly changing, making it challenging to remain compliant, especially when running multi-country operations. Omni helps HR teams remain up to date on the latest developments in regulatory compliance and avoid costly penalties.

Here are some key ways Omni supports compliance:

• Automates compliance with labor laws
• Facilitates GDPR and data protection compliance
• Manages employee consent for data processing
• Supports data subject access and erasure requests

Manage data privacy and document retention

Omni employs robust security measures to protect employee data, including compliance with international data privacy standards and data localization requirements. 

Omni implements an AES-256 encryption standard (the same as what banks use) to protect the transmission of data to our site. Our servers are located in physically secure, ISO 27001-certified data centers, and we apply end-to-end encryption to ensure maximum protection of your employee data.

Our compliance-ready features make keeping your data secure from an employee level seamless. Regular compliance reporting, access controls, and consent management capabilities ensure your data is secure at every level.

Multi-currency and multi-language support

‍Omni offers a global solution tailored for Asian businesses. Our expert, country-specific support helps you manage your distributed workforce efficiently, ensuring engagement and clarity in 190+ countries and 10+ languages. User-level language preferences and mobile accessibility in all supported languages mean your employees can easily access essential information from anywhere, in the language they need. Our multi-language notification systems and localized training materials boost clarity and accountability for your teams.

“Omni's uniquely flexible features allow us to customize HR operations for each country we operate in, ensuring we meet regional requirements. They impressed us with their exceptional customer service and proactive approach to gathering client feedback.” 
- Shux M., Chief People Officer at Endowus

Read more to: Learn how Omni improved Endowus’ employee experience with 40% faster onboarding processes

Omni’s comprehensive features make it the best HR platform for growing companies seeking to manage HR operations efficiently across multiple countries while ensuring compliance with local regulations.

BIPO

BIPO is a comprehensive HRIS for distributed teams Asia that offers human capital management solutions, global payroll outsourcing, and Employer of Record (EOR) services. The software enables businesses to manage their unique HR needs effectively and conveniently, ensuring a more organized and productive work environment for both managers and employees.

This HR software for multi-country compliance is ideal for businesses of all sizes, including startups and large enterprises operating across multiple countries. Furthermore, it is particularly suitable for companies expanding into or already managing workforces in Asia and other global markets.

Here’s how BIPO’s HR software for multi-country compliance stands out and supports compliance:

• Its services are powered by the Athena BI (Business Intelligence) platform, which provides real-time workforce insights for making data-driven decisions across multiple jurisdictions.
• It provides expertise from in-country HR, payroll, and tax professionals for companies looking to expand into SEA without setting up a local entity.
• BIPO supports multiple languages and offers flexible configuration to meet varying business needs and country-specific requirements while maintaining an intuitive user interface.
• The platform supports HR operations in over 160 countries with built-in compliance for local labor laws, tax regulations, and statutory reporting for companies operating across Southeast Asia and beyond.

Deel

Deel is an HR software for multi-country compliance that helps organizations hire, onboard, and pay employees and contractors seamlessly without establishing a legal entity. This minimizes risks related to taxes, benefits, or labor laws. This HR software for multi-country compliance is ideal for startups, mid-market, and large enterprises looking to streamline their HR operations or manage their global workforce better with consolidated and compliant payroll.

Here’s how Deel’s HR software for multi-country compliance stands out and supports compliance:

• It uses localized contract templates reviewed by legal teams to ensure smooth compliance with local labor laws and tax regulations.
• It accurately calculates region-specific payroll, withholds taxes and social security contributions, and administers statutory benefits to workers.
• Deel safeguards sensitive HR and payroll data across borders, as the tool is SOC 2 certified and fully GDPR-compliant.
• This HR software for multi-country compliance saves detailed documentation and audit trails for clear reporting during regulatory reviews.

Simplify Cross-Border HR Compliance with Omni 

With all of the complexities of multi-country compliance, where regulatory requirements span multiple jurisdictions and are constantly evolving, Omni stands out as the comprehensive HR software for multi-country compliance designed for the unique challenges faced by your global organization. With bank-grade AES-256 encryption, ISO 27001-certified data centers, and end-to-end encryption, we provide the robust security infrastructure essential for protecting your sensitive financial and employee data.

Omni's automated workflows and centralized document management system help your HR team maintain compliance across multiple regulatory frameworks. Through features like automated compliance reporting, customizable access controls, and consent management capabilities, Omni transforms complex compliance requirements into manageable, streamlined processes.

For organizations looking to scale while maintaining regulatory compliance, Omni offers more than just an HRIS platform—we provide a strategic partnership that supports your growth while safeguarding your organization against compliance risks. As testified by our customers across the region, Omni's customizable platform adapts to your unique organizational needs while ensuring consistent compliance standards across operations.