What is the Service Fee Policy for Maternity and Parental Leave?



Modified on: Fri, 31 Oct, 2025 at 3:47 PM

Our Employer of Record (EOR) service includes comprehensive employment administration, covering payroll, statutory benefits, compliance, and ongoing HR management. Because the employment relationship remains active during maternity or parental leave, our obligations as the legal employer continue. Accordingly, the monthly service fee remains in place during these periods.


Why the Monthly Service Fee Continues
When an employee goes on maternity or parental leave, the employment contract does not pause. Although the employee may not be actively working, we continue to perform a wide range of employer responsibilities, including:

  • Maintaining the employment contract and ensuring compliance with local labor and social security laws

  • Managing payroll adjustments, statutory leave payments, and any employer-funded top-ups

  • Handling reimbursement processes where applicable (for example, paying statutory benefits upfront and then applying for government reimbursement)

  • Continuing required filings and reports to authorities and benefits institutions

  • Coordinating documentation, notifications, and return-to-work procedures with both the client and the employee

In fact, the administrative workload on our side often increases during maternity or parental leave. This is due to the additional reporting, documentation, and follow-up required to ensure that statutory payments and reimbursements are processed correctly and on time.


Global Policy
This approach applies consistently across all countries where we operate. While specific processes and reimbursement schemes vary by jurisdiction, the EOR remains the legal employer and must maintain full compliance throughout the leave period. For this reason, the monthly service fee continues during maternity, paternity, or parental leave.


Optional Adjustments
In limited cases where local legislation or contractual terms significantly reduce administrative activity, we may review the situation with the client and determine whether a temporary fee adjustment is appropriate. Any such arrangements are evaluated individually and documented in writing.


Key Takeaway
During maternity or parental leave, the EOR continues to act as the legal employer and remains responsible for all related compliance, payroll, and reporting duties. Because our work and legal obligations persist, and in many cases increase, the monthly service fee remains applicable throughout the leave period to ensure accurate administration and full regulatory compliance.

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