Challenge
A Singapore-based SaaS firm with a 12-person team of developers and sales staff in Japan faced the challenge of strategic withdrawal from the Japanese market while needing to retain their valuable local talent. The company was executing a strategic restructuring that required closing their Japanese entity, but they couldn't afford to lose their skilled development team and sales professionals who possessed critical market knowledge, client relationships, and technical expertise specific to the Japanese market.
Solution
AYP Group implemented a comprehensive Employer of Record (EOR) solution that enabled the SaaS firm to execute their strategic withdrawal while retaining their entire Japanese team. The solution included:
- Strategic planning for entity closure while maintaining workforce continuity
- Legal termination of all 12 employees from the closing Japanese entity with full compliance
- Immediate re-engagement of all staff under AYP's EOR employment structure
- Seamless transfer of employment contracts, compensation packages, and benefits
- Full compliance with Japanese labor laws and employment regulations
- Maintenance of existing working relationships and team dynamics
- Complete HR and administrative support throughout the transition process
- Ongoing payroll, tax, and benefits administration under the EOR model
AYP ensured that while the legal employer changed, all operational aspects remained unchanged for the employees, maintaining business continuity and team morale.
Results
The strategic withdrawal and talent retention initiative delivered outstanding results:
- 100% talent retention - all 12 developers and sales staff were successfully retained
- Zero operational disruption during the entity closure and transition process
- Complete compliance with Japanese employment laws and regulations
- Seamless continuation of development projects and sales activities
- Maintained all existing client relationships and service delivery standards
- Preserved critical market knowledge and technical expertise
- Successful entity closure without any loss of institutional knowledge
- Continued ability to serve Japanese clients without maintaining a local legal entity
- Smooth strategic restructuring with maintained workforce capability