Huge opportunities exist when a company decides to pursue global expansion: new markets, new audiences and access to a larger talent pool. But expanding your organization’s geographic reach doesn’t always mean opening an office or branch in a new country. Sometimes, it’s hiring talent in the new market or relocating a current employee.  

This might seem easy, but cultural and legal nuances require up-to-date local knowledge to stay compliant in managing your global team. And if you’re planning on expanding into multiple countries, the challenge becomes even bigger. Say you’d like to expand in the UK, France and Brazil; it’s crucial to understand the types of employees you’re hiring and each market’s distinct employment and payroll laws.  

Correctly Classify Each Employee 

First, you must define the relationship between the company and the employee. Are you hiring talent as a full-time team member or an independent contractor? The two differ in terms of payment, benefits, taxes and more. Hiring a contractor offers more flexibility to the working relationship, while hiring an employee gives employers more control of day-to-day tasks. It’s essential to classify correctly to avoid legal repercussions. 

 Classification Considerations: 

Comply with Local Laws

Once you understand how each employee fits into your company, you’ll need to understand the local labor laws. Keeping up with the regulations of every market where your employees reside can be daunting. Employment contracts, salary requirements, working hours and holidays vary from country to country.

For example: 

• Under French Law, an employee who can’t work due to illness will likely have their employment contract suspended. 
• Employees in Brazil are entitled to 15 days of sick leave per year.  
• Eligible employees receive up to 28 weeks of paid sick leave per year in the UK.

The administrative work that comes with staying abreast of all regulations can be overwhelming, but noncompliance with local regulations can damage your business and often result in hefty fines. 

Compensate with Confidence

This is where a Direct Employer of Record (EOR), like Elements Global Services, can help. With entities in more than 160 markets—including France, the UK and Brazil—our Direct EOR model allows us to help you hire employees under our legal entity on your behalf. As the legal employer, we can onboard new talent, manage team members and take care of essential payroll and HR administration tasks.  

Our tech-enabled solution then makes it easy to manage and pay your people all over the globe. As a result, we reduce your time spent on HR and related admin, freeing you to focus on your business. 

• Elements’ proprietary human capital management and global payroll platform simplifies HR admin, employee management and payroll management processes with a secure, intelligent, tech-enabled solution. Paying employees in multiple markets is simple, safe and smart.  
• Our platform is complemented by the market intelligence and up-to-date insights on tax and regulatory compliance needed to hire and manage global talent. Localized expertise helps companies navigate the complexities of international HR, payroll and local laws based on unique business needs. 
• Our Account Managers are available to provide real-time data, insight and analytics when you need them.  

See for Yourself

Moishe House employs talent all over the globe, which made it challenging to handle typical HR administration like salary, benefits and contracts. Find out how this nonprofit now quickly and efficiently manages and pays its talent in seven countries. Read the case study here. 

About Elements Global Services
Elements Global Services is a global tech firm, focused on software built to go beyond country borders and simplify a company’s ability to expand their business, onboard employees, manage compliance and pay globally. Headquartered in Chicago, Elements offers customers 100% direct Employer of Record services in over 160 countries, powered by proprietary HR technology that simplifies everything from payroll, benefits and human capital management to HR outsourcing, local compliance and visa & mobility.