Under the Employer of Record (EOR) arrangement, Team APAC legally employs individuals on behalf of client organizations. To facilitate smooth transactions and mitigate financial risks, Team APAC requires clients to place a deposit for each EOR employee hired.
Deposits are charged and refunded using the local currency of the employee’s country. If transactions occur in currencies other than the local currency, currency exchange rates applicable at that time will apply.
Calculating Deposit Amounts
Deposits generally amount to between 1 to 2 months of total recurring charges, which include:
- Employee salaries
- Employer-related expenses
- Fixed monthly allowances
- Team APAC management fees
Factors influencing the deposit amount include amendments to the original EOR contract or transfers of existing EOR employees.
Should the deposit exceed the final amount invoiced upon termination or resignation, the surplus funds will be refunded to the client. Conversely, if the deposit is insufficient to cover the final invoice, it will remain on hold until the client fully settles any outstanding balance.
Important: Deposit requirements may be higher in regions with elevated financial risks associated with employee terminations.
Situations Requiring Increased Deposits
Team APAC may request a larger deposit under certain conditions or requests, including but not limited to:
- Removal of probation periods
- Provision of PTO benefits beyond statutory requirements
- Extension of notice periods beyond the standard duration
- Transfer of employees retaining accrued entitlements (such as PTO, seniority benefits, or severance packages)
- Salary or fixed allowance increases
These adjustments protect both Team APAC and its clients against additional financial obligations or risks.
Refund of Deposits
In accordance with Team APAC’s Master Services Agreement, refunds will be processed within 45 days after the completion of the termination process and the full payment of outstanding invoices.
However, refunds are frequently issued sooner than this deadline.
Normally, deposits are refundable after the employment relationship concludes, whether due to employee resignation or termination, provided that all outstanding invoices have been fully paid.
In cases of resignation, a signed resignation letter from the employee and payment of the final invoice are required before processing the refund.
If the deposit amount exceeds the final invoice, the difference will be returned to the client. If the deposit amount is less than the final invoice, clients must settle the remaining balance before receiving any deposit refunds.
The final invoice typically covers:
- The employee’s final salary
- Compensation for unused leave
- Any severance owed legally or voluntarily provided by the client
- Outstanding Team APAC service fees
Deposits are refunded using the currency specified by the client’s bank account for refunds. If the deposit currency differs from the account provided, a currency conversion will occur at the prevailing exchange rate. Clients should therefore provide bank details matching the deposit currency to avoid additional exchange fees.
