How to hire remote employees in

Laos

Laos is a beautiful Southeast Asian country filled with great remote talent and, unfortunately, complex labor laws. If you’ve found someone in Laos you’d like to hire—but are less excited about the prospect of wading through legal jargon and thousands of dollars—you’re in the right place. Read on to learn the best way to hire someone in Laos.

Country snapshot

CURRENCY
Lao kip
EMPLOYER TAXES
6%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Lao (Official), French, English

What to know before you hire in 

Laos

Laws about hiring are complicated, and the same is true in Laos. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Laos, you have two real options when it comes to hiring. We’ll detail both below.

If you want to successfully hire in 

Laos

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Laos

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Laos

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Laos

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Laos

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Laos

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Laos

?

If you’re hiring contractors in 

Laos

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Laos

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Laos

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Laos than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Laos.

Taxes in 

Laos

Employer tax

Social Security Contributions

Individual tax

Leave

Paid Time Off (PTO)

An employee is entitled to 15 days' paid annual leave per year, if they have both:

  • An indefinite contract or a fixed-term contract of more than one year.
  • Been employed for one full year.

Public Holidays

There are 7 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • The law provides that, upon presentation of a medical certificate, employees are entitled to sick leave fully paid up to a maximum of 30 days each year.
  • However, workers working on a daily or hourly basis under a specific employment contract are entitled to sick leave only if they have worked for more than 90 days for the same employer.

Maternity Leave

Female employees are entitled by law to receive full wages in case of maternity leave, which can range from 90 to 105 days, or 120 days in the case of multiple births.

In the event of miscarriage, female employees are also entitled to maternity leave, with the number of days to be determined by the attending physician.

Paternity Leave

Male employees are entitled to take at least three days' paid leave if their wife gives birth or miscarries (Article 58, Labour Law).

Parental Leave

Employees are entitled to up to 3 days of leave if the employee’s father, mother, spouse, or child is injured and hospitalized, and there is nobody to take care of them.

Other Leave

Jury Duty Leave and Voting Leave (Leave due to Public Interest) - Not specified by law.

Military Leave -Not Specified by law.

Marriage Leave

Not Specified by law.

Bereavement Leave

Employees are entitled to up to 3 days of paid leave if the employee’s father, mother, spouse, or child passes away.

Termination

Termination Process

The employment will be terminated when one of the following conditions is met:

  • the expiration of the contract, or completion of tasks set out in the contract
  • the death of the employee or the employer
  • the termination of the company;
  • the employee has been sentenced to imprisonment; or
  • the employer and employee have provided mutual consent

There is no defined notification period for a fixed-term contract, and such terms are generally agreed upon in the employment contract.

With respect to an indefinite-term contract, each party may terminate the contract at any time provided notification is provided to the other party at least 30 days in advance for contracts involving physical labor employees, and at least 45 days in advance for contracts involving employees who use intellectual/special skills.

Alternatively, the employer can choose to make payment in lieu of notice to the employee who will be terminated. 

The Labor Law provides for severance payments to be made for the following types of termination of employment:

  • In the case of general unilateral termination of the contract, the severance value is 10% of the employee’s last wage multiplied by the number of months worked.
  • In the case of unjustified unilateral termination of a contract, the severance value is 15% of the employee’s last wages, multiplied by the number of months worked, with no capped amount for severance payment.
  • In the case of the death of an employee, the employer must pay 50% of the compensation that would have been received by the employee for general unilateral termination of the contract.

Notice Period

The notice period in Laos is:

There is no defined notification period for a fixed-term contract, and such terms are generally agreed upon in the employment contract.

Severance Pay

The Labor Law provides for severance payments to be made for the following types of termination of employment:

  • The Labor Law provides for severance payments to be made for the following types of termination of employment:
  • In the case of unjustified unilateral termination of a contract, the severance value is 15% of the employee’s last wages, multiplied by the number of months worked, with no capped amount for severance payment.
  • In the case of the death of an employee, the employer must pay 50% of the compensation that would have been received by the employee for general unilateral termination of the contract.

Probation Period

Probation period may not exceed 30 days.

Employee requirements in 

Laos

Working Hours

The Labor Law limits working hours to 48 hours per week.

Work that is performed beyond this limit will be considered as overtime.

Likewise, the law provides that an employee cannot work more than six days per week and eight hours per day.

Overtime

According to the Labor Law, overtime cannot exceed three hours per day or 45 hours per month.

In addition, an employee cannot work overtime for more than four consecutive days, except in emergencies.

Overtime wages differ according to the type of overtime, with the Labor Law providing different rates for different days and periods in which the overtime is performed (e.g. overtime on regular days, overtime at night, overtime on public holidays).

With respect to an indefinite-term contract, each party may terminate the contract at any time provided notification is provided to the other party at least 30 days in advance for contracts involving physical labor employees, and at least 45 days in advance for contracts involving employees who use intellectual/special skills.

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