Global Hiring Options Explained

Option 1: Independent contractor

As a non-employee, an independent contractor is a person providing services to the company on its own. As a result, private contractors need to pay their own social security contributions.

  • You have less control over the workers because contractors have autonomy over the execution of the tasks.
  • You can engage contractors only for short-term projects not to receive misclassification fines.
  • Independent contractor hire leads to increased misclassification risk. Each country has its own regulations and employee misclassification fines. For this reason, companies require a compliant agreement with independent contractors and the internal HR department to manage the workforce.
  • Please note that the relationship between the company and the contractor is not regulated by the labor code. This leads to a risk of contract termination without any legal consequences.

Option 2: Foreign Legal Entity

When expanding overseas, you can proceed with a direct approach — to open a legal entity in the targeted country(-ies).

Option 3: EOR (Employer of Record)

Employer of Record (EOR) — is an intermediary between the employee and company. In other words, you do not have to set up a company in a foreign country, but hire your personnel through an EOR agent and run your business as usual but now being international.

  • Employee onboarding
  • Local agreement drafting and approval
  • Payroll setup and calculation
  • Wages payment and payslips providing
  • Benefits compensation and expenses reimbursement
  • Tax filing
  • Legal consultancy.

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Acvian

Acvian

Employer of Record Services in 118 Countries