EOR-to-Entity Transition in China: Employee Transfer and Payroll Checklist

An EOR-to-entity transition in China begins when a company that has been hiring through an Employer of Record is ready to employ those workers directly through its own Chinese entity. The employees may keep the same roles, managers and business responsibilities, but their legal employer, labor contracts, payroll records, statutory registrations and work authorization may all need to change.

Decision guide: compare China EOR vs WFOE.

This is not simply a payroll-provider migration. The EOR’s Chinese employing entity must close or transition its employment relationship with each employee, while the client’s newly established entity must become operationally ready to sign contracts, run payroll, withhold individual income tax, administer social insurance and housing fund contributions, protect employee records and sponsor foreign employees where applicable. This guide assumes that the decision to establish and use the China entity has already been made. It does not repeat the strategic comparison between EOR and local entity. Instead, it explains how to move existing employees from EOR employment to direct employment without avoidable disruption. The transition covers:

• confirming that the China entity is ready to employ and pay staff;
• selecting the correct employment-transition route;
• protecting employee service, leave, salary and benefits;
• closing the EOR employment and final payroll;
• opening direct payroll under the company’s own entity;
• updating IIT withholding information;
• transferring social insurance and housing fund accounts;
• changing foreign employees’ work permits where required;
• migrating employee records and payroll history; and
• reconciling EOR invoices, payroll funding and deposits.

For a broader explanation of the original employment model, see HROne’s China Employer of Record guide.

If you are moving in the opposite direction, see closing your entity but keeping the team.

Content updated: November 3, 2026. Employment continuity, payroll and statutory transfer procedures require city- and employee-specific review.

When to Switch From an EOR to Your Own Entity

The decision to switch from an EOR to a locally incorporated employer depends on the activities the business needs to perform—not just team size. Compare the recurring EOR fee with entity setup, accounting, statutory filings, staffing and annual compliance costs before setting a transfer date.

Decision factor	Continuing with EOR may fit	Using your own China entity may fit
Local invoices and customer contracts	The team supports an overseas business without needing its own local invoicing capacity	The business needs to invoice, collect locally or conduct licensed operations
Team and cost	Limited or uncertain headcount; employer administration is outsourced	Stable staffing justifies comparing total entity costs with EOR fees
Operating authority	Employee roles fit a reviewed EOR arrangement	Onshore trading, licensing or contracting requirements call for an entity
Launch timeline	Entity formation is not yet ready	The entity, bank accounts, payroll and registrations can operate before transfer

For the underlying economics, compare EOR versus a local China entity and the China EOR cost model. These are planning factors, not a legal or headcount threshold.

How an EOR to Entity Transition in China Works

Under the EOR arrangement, the EOR’s local entity is normally named as the employer in the Chinese labor contract. It administers payroll, IIT withholding, social insurance, housing fund contributions, employment records and formal employee procedures. During the transition from an EOR model to a local entity, a China EOR service can remain relevant to the interim hiring arrangement. After the client establishes its own suitable China entity, the intended structure changes:

Responsibility	Before the transition	After the transition
Legal employer	EOR employing entity	Client’s China entity
Labor contract	Signed by the EOR entity	Signed by the client’s China entity
Payroll payer	EOR entity	Client’s China entity or its payroll agent
IIT withholding agent	EOR entity	Client’s China entity
Social insurance	Administered through the EOR	Administered through the client entity
Housing fund	Administered through the EOR	Administered through the client entity
Employment records	Held or administered by the EOR	Held or administered by the client entity
Work-permit sponsor	EOR entity where applicable	Client entity where qualified and approved

The destination is therefore not another EOR. It is direct employment under the company’s own China entity, with the company assuming the legal and operational responsibilities that previously sat with the EOR.

Do Not Transfer Employees Before the Entity Is Payroll-Ready

Receiving a business license does not necessarily mean the entity is ready to employ workers and complete payroll. Before selecting the employee-transfer date, confirm that the entity can perform every employer function required from the first day of direct employment. The entity-readiness review should cover:

• valid business registration and an appropriate business scope;
• official company chops and authorized signatories;
• a functioning corporate bank account;
• tax registration and access to the relevant electronic tax systems;
• registration as an IIT withholding agent;
• a social insurance employer account;
• a housing provident fund employer account;
• payroll calculation and approval procedures;
• salary-payment banking arrangements;
• locally compliant labor-contract templates;
• employee handbook and workplace policies;
• commercial insurance and supplementary benefit arrangements;
• personnel-file and document-retention controls;
• internal HR, payroll and finance owners;
• a payroll outsourcing provider where the entity will not run payroll internally; and
• foreign-employer registration and work-permit capability where foreign employees are involved.

If one of these elements is incomplete, moving the employees may create a period in which the EOR has stopped acting as employer but the new entity cannot yet run payroll or complete statutory filings. The China company formation guide explains the wider entity-establishment process. Once the entity exists, HROne’s China payroll outsourcing service can support payroll calculation, IIT, social insurance, housing fund administration, payslips and reporting while the company remains the direct legal employer.

Set a Transfer Date Around Legal and Payroll Readiness

The target date should be selected jointly by legal, HR, payroll, finance, the EOR and the new entity. Do not choose it solely because the business license has been issued or because an internal project milestone has been reached. A practical cutover date should allow enough time to:

• review each employee’s existing contract and status;
• agree on the old-employment exit route;
• prepare and sign the new labor contract;
• complete employee communications;
• finish the old EOR payroll;
• register employees under the new payroll and tax account;
• coordinate social insurance and housing fund procedures;
• change work permits for foreign employees;
• activate benefits under the new entity;
• transfer required employee records; and
• fund the first direct payroll.

The company should ideally complete the transition between payroll cycles or at a clearly defined month-end boundary. However, the legally correct employment and permit sequence takes priority over administrative convenience.

Determine the Correct Employment-Transition Route

The new China entity is generally a separate legal employer from the EOR entity. Employees should not be treated as having transferred automatically merely because the overseas client owns or controls the new entity. China’s Labor Contract Law provisions on employer changes state that a change in an employer’s name, legal representative or investors does not affect an existing contract. They also state that a contract continues following a merger or division through the entity that succeeds to the original employer’s rights and obligations. An EOR-to-client-entity migration usually does not fall into either situation. The EOR entity and the client’s entity continue to exist as separate companies. The parties therefore need a documented route to close or transition the old employment and create the new direct employment relationship. Possible routes may include:

• a mutual termination between the EOR and employee followed by direct employment with the client entity;
• a tripartite transition agreement involving the EOR, employee and client entity;
• a genuinely voluntary employee resignation followed by direct employment;
• expiration or another lawful conclusion of the EOR contract followed by a new contract; or
• another locally reviewed structure based on the facts of the case.

Mutual termination should not be treated as a paperwork shortcut. Under the Labor Contract Law rules on financial compensation, compensation may be payable where the employer proposes termination by mutual agreement. The old EOR, client and employee should agree on the legal basis, payment treatment and documentation before the transition is announced as final. An employee should not be pressured to submit a resignation merely to reduce the cost or administration of the transfer. A resignation should reflect the employee’s genuine decision and understanding of the consequences.

Protect Employee Continuity in Writing

Employees are likely to view the transition as an internal company change, even though their legal employer is changing. Their main concerns will usually be salary, job security, service history, leave, benefits and whether they need to complete onboarding again. The transition agreement or new contract should address:

• whether the role and reporting line remain unchanged;
• the final date with the EOR and first date with the new entity;
• whether there is any employment gap;
• recognition of prior service;
• unused annual leave and other leave balances;
• salary and salary-payment date;
• bonus and commission entitlement;
• allowances and reimbursements;
• supplementary medical or commercial insurance;
• confidentiality and intellectual-property obligations;
• employee handbook and policy changes;
• work location and remote-work arrangements;
• work-permit consequences for foreign employees; and
• who will answer employee questions.

Recognized service

Previous service with the EOR should not be assumed to become service with the new entity automatically for every legal or contractual purpose. The new entity can agree to recognize the employee’s earlier service for specified purposes, but the wording should be precise. The agreement should state whether recognition applies to:

• internal seniority;
• company-provided annual leave;
• benefit eligibility;
• bonus plans;
• future notice or settlement calculations;
• long-service awards; or
• other company policies.

Contractual recognition should not be presented as eliminating the former EOR’s existing obligations or automatically determining every future statutory severance question.

Probation

The new entity should not automatically restart probation simply because it is signing a new contract. The China probation period rules impose contract-term limits and restrict repeated probation with the same employer; a cross-entity employee transfer additionally requires assessment of employment continuity, consent and local labor-law risk. The employee may already have performed the same role for the same business for a substantial period. A new probation clause can create legal and employee-relations risk, particularly if it appears to reduce job security during a transfer initiated by the company. Any proposed probation arrangement should receive case-specific review.

Annual leave and benefit balances

Before the EOR employment ends, reconcile:

• statutory annual leave;
• additional company leave;
• time off in lieu;
• sick-leave records;
• bonus and commission accruals;
• approved expenses;
• overtime records;
• medical-insurance claims; and
• other employee balances.

Each balance should be paid, used, transferred as an agreed contractual entitlement or otherwise resolved in writing. It should not disappear simply because the payroll platform or legal employer changes.

Prepare New Direct Employment Contracts

The client’s Chinese entity should issue a locally compliant labor contract identifying itself as the employer. The old EOR contract cannot simply be copied with the employer name replaced. Under China’s Labor Contract Law, the written contract should include essential terms such as employer and employee details, contract duration, job duties, work location, working time, remuneration, social insurance and working conditions. Compare the old and new contracts line by line:

Contract item	Transition question
Employer	Does the contract show the client’s exact registered Chinese entity?
Contract term	Does the new term align with the agreed transition and service treatment?
Role	Are the title, duties and reporting line consistent with actual work?
Work location	Does it match the payroll, social insurance and work-permit location?
Salary	Are base salary, allowances, bonus and payment date clearly stated?
Working time	Is the applicable working-hours arrangement documented correctly?
Leave	Does the contract or transition agreement address existing balances?
Benefits	Are statutory and supplementary benefits accurately described?
Service recognition	Does the wording specify which prior service is recognized and why?
Confidentiality and IP	Are obligations transferred into documents signed with the new entity?
Policies	Has the employee received and acknowledged the new entity’s handbook?

The employee should receive sufficient time to review the new documents. Signing should be completed before the new entity treats the employee as having started direct employment.

Close the EOR Employment Correctly

The EOR remains the legal employer until its employment relationship has ended through the agreed route. The client should not instruct the EOR to remove employees from payroll without completing the associated employment process. The EOR closing file may include:

• mutual termination, resignation or other exit documentation;
• the final employment date;
• termination certificate;
• final salary calculation;
• unused leave treatment;
• bonus and commission calculation;
• expense reimbursement;
• severance or agreed transition payment;
• IIT withholding;
• final social insurance and housing fund handling;
• final payslip and bank-payment proof;
• work-permit release or cancellation documents;
• employee-file handover records; and
• equipment or access records where applicable.

The Labor Contract Law provisions on employment closure require the employer to issue proof of revocation or termination and complete the relevant employee-file and social-insurance transfer procedures. See HROne’s China EOR termination guide for the wider legal and payroll process.

Reconcile the Final EOR Payroll

The EOR’s final payroll should be treated as a formal closing payroll, not simply the last ordinary monthly run. Confirm the treatment of:

• salary through the final employment date;
• attendance and unpaid leave;
• overtime;
• bonus and commission;
• unused annual leave;
• approved expenses;
• employee deductions;
• IIT withholding;
• social insurance;
• housing fund;
• benefit deductions;
• severance or transition payments; and
• any off-cycle payment required after the normal cutoff.

The client should obtain the final payroll register, payslip, IIT record, statutory-contribution record and payment evidence before closing the EOR account.

Option: Keep HR and Payroll Outsourced After the Entity Switch

Once the client’s China entity becomes the legal employer, the team can keep HR administration and payroll support outsourced. That is a different arrangement from an EOR continuing as legal employer.

Model	Legal employer	HR and payroll operations
Entity with internal HR	Client’s China entity	Client manages employment records, payroll, IIT and statutory contributions
Entity with PEO or payroll outsourcing	Client’s China entity	Service provider assists with agreed payroll, employee administration and statutory submissions; ultimate employer responsibility remains with the client

Compare EOR-to-PEO transition support and HROne’s China PEO service before choosing the handover scope. Discuss a transition plan once the employing entity’s registration and payroll readiness have been verified.

Set Up the First Payroll Under the China Entity

The first entity payroll should be prepared before the employee’s direct-employment start date. Waiting until the first salary cutoff creates unnecessary risk. The opening payroll file should confirm:

• employee legal name and ID or passport information;
• new employment start date;
• work city and payroll city;
• bank-account information;
• base salary and allowances;
• variable-pay rules;
• salary payment date;
• working-time arrangement;
• social insurance contribution base;
• housing fund contribution base and ratio;
• IIT information;
• special additional deduction information where applicable;
• benefit deductions;
• leave opening balance under the new entity; and
• general-ledger and cost-center mapping.

Where the company does not have an experienced internal payroll team, it can retain legal-employer responsibility while using China payroll outsourcing for monthly payroll execution. The China payroll guide explains the gross-to-net process, payroll inputs, IIT, statutory deductions, payslips and payroll controls.

Update IIT Employment and Withholding Records

The EOR and client entity are separate IIT withholding agents. The old EOR should close or update the employee’s status in the natural-person tax system, and the new entity should add the employee under its own withholding account. The State Taxation Administration’s guidance on changing employers confirms that a new employer can add the employee’s employment information without waiting for the former company to disappear from the employee’s IIT application. The former withholding agent should update the employee’s status and report the departure date. The payroll transition file should retain:

• salary paid by the EOR during the tax year;
• IIT withheld by the EOR;
• taxable benefits and allowances;
• bonus treatment;
• special additional deductions;
• employee tax identification details;
• foreign-employee residency information where relevant; and
• copies of prior tax reports or employee-visible records.

The new entity should follow the current withholding-system rules rather than manually treating tax previously withheld by the EOR as tax withheld by the new entity. Employees who receive salary from more than one employer during the tax year may need to review the result through the annual IIT reconciliation process.

Transfer Social Insurance Without a Coverage Gap

The old EOR and new entity should agree which employer is responsible for the final contribution month and when the new entity will add the employee to its account. Official Shanghai guidance states that employers must register employees for social insurance within 30 days of employment. It also explains that where an employee works for two employers during the same month, the first employer is responsible for arranging that month’s social insurance in Shanghai. Local procedures can differ, so the same rule should not be applied automatically in every city. See the official Shanghai social insurance guidance for that local example. The transfer checklist should identify:

• current contribution city;
• new contribution city;
• old-employer removal date;
• new-employer registration date;
• final and opening contribution months;
• contribution bases;
• medical-insurance continuity;
• cross-city transfer requirements;
• employee account numbers; and
• evidence that the new registration is active.

A same-city employer change may be simpler than moving the employee to another city. A cross-city transition may require separate account-transfer procedures and can affect contribution bases, medical access and housing fund administration. Use HROne’s China social insurance guide for the national framework and verify the actual procedures in the employee’s location.

Transfer the Housing Provident Fund Account

The client entity should have an active housing fund employer account before it takes over employees who must participate in the system. China’s Housing Provident Fund Regulations require newly established units to complete contribution registration and require employers to establish or transfer employee accounts after hiring. They also require the former employer to handle transfer or account-sealing procedures after the employment relationship ends. A typical EOR-to-entity process may involve:

1. the EOR completes its final housing fund contribution;
2. the EOR seals or releases the employee’s account;
3. the new entity confirms its employer housing fund account;
4. the employee’s personal account is transferred to the new entity;
5. the account is reactivated where required; and
6. the new entity begins contributions using the correct base and ratio.

The transfer should be verified through system records or official receipts. An email stating that the account has been transferred is not a substitute for confirming that the employee appears under the new entity and that contributions can be made. See HROne’s housing provident fund guide for contribution and account-management principles.

Move Foreign Employees to the New Entity Carefully

A foreign employee’s work permit is connected to the approved employing entity, occupation and location. Establishing a China entity does not automatically make that entity the employee’s authorized sponsor. Before moving the employee, confirm that the new entity:

• is legally established and operating;
• can register in the foreign work-permit system;
• has a business scope and activity consistent with the proposed role;
• can provide the required stamped company documents;
• can sign the employment contract;
• can support the salary and tax records in the application;
• can administer social insurance where required; and
• has assigned an owner for future renewals and changes.

Beijing’s official guidance for foreign employees changing employers states that an employee changing to a new employer while remaining in the same occupation should first cancel the existing permit and apply for a new permit within the stated period. Do not assume that the employee can continue working during every stage between cancellation and approval. The EOR, new entity and immigration adviser should establish the permitted sequence before fixing the employment-transfer date. The plan should also cover:

• release and cancellation documents from the EOR;
• new employment contract;
• new entity registration documents;
• application timing;
• residence-permit updates;
• social insurance changes;
• dependents’ documentation;
• business-travel restrictions during processing; and
• a contingency if approval is delayed.

Review HROne’s China work permit guide for the broader employer-change and immigration process.

Migrate Employee and Payroll Data Lawfully

The company will need historical information from the EOR to operate payroll, administer benefits and maintain defensible employee records. However, the EOR should not simply send its entire personnel database to the client entity without reviewing purpose, necessity and access rights. China’s Personal Information Protection Law requires personal information processing to follow principles including lawfulness, necessity, transparency, accuracy and security. Providing personal information to another personal information handler can require employee notice and separate consent. Cross-border access can create additional requirements. The data-migration plan should include:

1. Inventory the records. Identify which documents and data are necessary for direct employment.
2. Classify the data. Separate ordinary employment records from sensitive information such as financial accounts, health records and identification documents.
3. Confirm the legal basis. Determine whether processing is necessary for the employment contract, HR administration, statutory duties or another lawful basis.
4. Give required notices. Tell employees who will receive the data, why it is needed and how it will be used.
5. Obtain separate consent where required. Do not rely on an old generic consent that does not cover the transfer.
6. Use secure transmission. Avoid uncontrolled email attachments or public file-sharing links.
7. Validate accuracy. Reconcile names, IDs, salary, bank, tax, leave and contribution data.
8. Limit access. Give access only to authorized HR, payroll, finance and compliance personnel.
9. Record receipt. The new entity should confirm that the required file is complete and readable.
10. Define retention. The EOR should retain records it is legally required to keep and return or delete other information according to applicable obligations.

The transferred employee file may include:

• offer and labor-contract records;
• employee identification documents;
• payroll and payslip history;
• IIT records;
• social insurance and housing fund records;
• leave balances;
• benefit enrollment;
• work-permit documents;
• performance and disciplinary records where necessary;
• confidentiality and intellectual-property documents; and
• termination and transition documentation.

HROne’s China HR documentation requirements guide explains how these records fit together across the employment lifecycle.

Close the EOR Service Agreement and Recover the Deposit

The employment transition and the commercial EOR exit should be managed together but documented separately. Review the EOR service agreement for:

• termination notice;
• minimum service period;
• employee-transition support;
• final payroll deadlines;
• offboarding fees;
• data-transfer obligations;
• record-retention responsibilities;
• work-permit cancellation support;
• final invoice timing;
• deposit deductions;
• dispute reserves; and
• deposit refund deadlines.

The old EOR may still need funds for final salary, statutory contributions, severance, leave, expenses or later payroll corrections. At the same time, the company must fund the first payroll through its new entity. Budget for temporary cash overlap rather than assuming the old EOR deposit will be returned before the new entity’s first payroll. The China EOR cost guide explains the difference between recurring employment expense, payroll pre-funding and refundable deposits.

Run a First-Payroll Parallel Check

Before releasing the first direct payroll, compare the new entity’s calculation with the final EOR records. This does not mean paying employees twice. It means reviewing the outputs in parallel so unexpected differences can be corrected before payment. Check:

• employee population;
• employment start dates;
• base salary;
• allowances;
• bonus and commission;
• attendance and leave;
• employee bank accounts;
• IIT information;
• social insurance;
• housing fund;
• benefit deductions;
• net salary;
• payslip format;
• payment file;
• general-ledger mapping; and
• employer-cost reporting.

Any material difference should have a documented explanation rather than being accepted merely because the payroll system generated it.

EOR-to-Entity Transition Checklist

Checkpoint	Required evidence	Status
Entity is legally established	Business license and company registration documents	Pending / Complete
Corporate bank account is operational	Bank confirmation and payment controls	Pending / Complete
Payroll and IIT systems are ready	Tax-system access and payroll test	Pending / Complete
Social insurance account is ready	Employer registration evidence	Pending / Complete
Housing fund account is ready	Employer account confirmation	Pending / Complete
Employment-transition route is approved	Legal review and transition plan	Pending / Complete
Employee terms are agreed	Service, leave, salary and benefit schedule	Pending / Complete
New contracts are signed	Signed direct-employment contracts	Pending / Complete
EOR employment is closed	Exit agreement and termination certificate	Pending / Complete
Final EOR payroll is reconciled	Payroll register, payslip and payment proof	Pending / Complete
IIT employment information is updated	Old-employer departure and new-employer registration	Pending / Complete
Social insurance is transferred	Removal and new enrollment evidence	Pending / Complete
Housing fund is transferred	Seal, transfer and activation evidence	Pending / Complete
Foreign permits are updated	Cancellation and new approval documents	Pending / Complete
Employee data is transferred	Inventory, notices, consent and receipt record	Pending / Complete
Benefits are active	Enrollment confirmation and coverage date	Pending / Complete
First entity payroll is approved	Payroll review and payment authorization	Pending / Complete
EOR deposit is reconciled	Final statement and refund confirmation	Pending / Complete

Audit the First Month After the Transition

The transition is not complete when the employees sign their new contracts. It is complete only after the company confirms that the first month of direct employment worked correctly. Audit:

• salary payment timing and accuracy;
• payslips;
• IIT declaration;
• social insurance enrollment and payment;
• housing fund enrollment and payment;
• employee bank information;
• benefit coverage;
• leave and service records;
• foreign work permits;
• employee access to historical records;
• general-ledger postings;
• payroll funding and bank reconciliation;
• employee questions or complaints; and
• outstanding EOR invoices and deposit refund.

Assign owners and correction dates for every exception. Do not allow small first-month discrepancies to become permanent payroll master-data errors.

Move From EOR to Direct China Payroll With a Controlled Plan

An EOR-to-entity transition is a normal stage in China expansion. Many companies use an EOR to hire their first employees, test the market or build a pre-opening team, then move those employees to direct employment after their own entity becomes operational. The transition succeeds when the company treats it as a coordinated employment, payroll, tax, benefits, immigration, data and finance project—not as a simple change of payer. HROne can support the EOR closing process and help the company establish payroll outsourcing for its own China entity. The transition plan can cover employee documentation, final EOR payroll, direct payroll onboarding, IIT, social insurance, housing fund, payslips, reporting and first-month reconciliation. This article provides general information and does not constitute legal, tax, payroll, immigration or data-protection advice. The correct treatment depends on the EOR structure, employee contracts, city, entity readiness, employee nationality, service history, benefits and local administrative procedures. Obtain case-specific review before implementing the transfer.

Need to plan the handover? Discuss an EOR-to-entity transition with HROne to map the employment exit, new legal employer, payroll opening, IIT withholding, statutory registrations and deposit reconciliation. If the new entity will outsource ongoing HR and payroll operations, the China PEO option can be assessed separately.

Frequently Asked Questions

When should a company switch from an EOR to its own China entity?

Switch when the company needs local invoicing or licensed operations, its entity and bank account are operational, and a documented comparison shows the direct-employer model fits its stable staffing plan. Confirm payroll, IIT, social-insurance, housing-fund and employee-transfer readiness first. If the issue is provider performance rather than an entity requirement, consider switching EOR providers instead.

Do employees automatically transfer from the EOR to our China entity?

Usually not. The EOR entity and the client’s China entity are separate employers. The parties normally need to document how the EOR employment ends and how direct employment under the new entity begins.

Must the employee sign a new labor contract?

Yes, where the client’s entity becomes the new legal employer, it should sign a locally compliant labor contract with the employee before direct employment begins.

Can the China entity recognize the employee’s EOR service?

The entity can agree to recognize previous service for specified contractual purposes such as internal seniority, leave or benefits. The wording should be documented clearly and should not be assumed to determine every statutory obligation automatically.

Should the employee receive a new probation period?

A new probation period should not be added automatically. The employee may already have performed the same role for the same business, so any probation arrangement requires careful legal and employee-relations review.

How should the final EOR payroll and first entity payroll be coordinated?

The EOR should complete a closing payroll through the final employment date. The new entity should prepare an opening payroll from the first direct-employment date. The two payroll files should be reconciled to prevent missing or duplicate salary, deductions and statutory contributions.

What happens to individual income tax when the employer changes?

The old EOR should update the employee’s departure information, and the new entity should add the employee under its own IIT withholding account. Historical salary and tax records should be retained for reconciliation and employee annual filing where applicable.

How are social insurance and housing fund transferred?

The EOR normally completes its final contributions and removes or releases the employee. The client entity then enrolls the employee and transfers or activates the relevant accounts according to local procedures.

Can a foreign employee keep the same work permit?

A change of legal employer normally requires work-permit review and may require cancellation followed by a new application under the client entity. The employee should not begin working for the new entity until the applicable authorization is in place.

When should the EOR deposit be returned?

The refund normally follows final payroll, statutory payments, employee exit or transfer completion, invoice reconciliation and satisfaction of the service agreement’s closure requirements.