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The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Frequently Asked Questions

Explore answers to frequently asked questions about international employment compliance and workforce management challenges.

Properly classifying workers as employees or independent contractors is crucial to remain compliant globally. Using an employer of record (EOR) solution helps reduce co-employment risks when working with contractors overseas. They can validate contractor classification, set up proper contracts, manage payments, and ensure contractor vs. employee tests are satisfied per country.
Misclassification can lead to severe penalties, back-owed taxes/benefits, labor disputes, damaged reputation and more. Risks include tax agency audits, class action lawsuits from workers, sanctions for breaking labor laws, inability to engage contractors long-term, and large penalty fees per misclassified worker.
Employment laws governing hiring, firing, paid leave, minimum wage, overtime, benefits, taxes and more can vary drastically by country. Falling out of compliance, even unintentionally, opens companies up to fines, lawsuits, damage to brand reputation, inability to renew visas/licenses, and being barred from countries.
Tax obligations depend on the country but typically include employer tax contributions like social security taxes, healthcare taxes, pension/retirement taxes, unemployment/disability funds, and withholding income/payroll taxes from employee pay. Many countries also require paid leave funding.
Partnering with a global employment compliance expert like People2.0 is key. We constantly monitor changing regulations across countries to adjust processes. We provide localized HR expertise, update entities/contracts appropriately, attend to evolving tax/reporting duties, and implement controls to remain audit-ready.
Termination requirements like final pay timelines, documentation, approvals, severance, and notice periods mandate careful handling per country to avoid risks. An experienced global workforce solutions partner like People2.0 can compliantly off-board per location. 
Understanding statutory and typical supplemental benefits per country, and tailoring packages accordingly, is critical. An employer of record (EOR) partner can design compliant, market-rate packages including healthcare, retirement, leave, and perks like learning stipends to appeal to global hires.
Requirements differ based on the hiring country and the worker’s nationality/citizenship. Rules may mandate specific visa types, work authorization documents, minimum compensation, and other qualifications for legal employment. Global partners track evolving immigration protocols.
Leave laws range from non-existent to very generous by global standards. The US is the only developed nation with no federal paid parental leave, whereas many European companies are required to provide 6+ months partially paid maternity leave and paid paternity time.
Using a global payroll solution such as People2.0’s that has multi-country capabilities allows companies to unite payroll data from every country into one system. This enables centralized reporting, payments in the correct currencies/cycles, consistent processes, and integration with HCM/ERP systems.
Companies need in-country professionals fluent in HR practices, employee relations, union relationships and more. An employer of record (EOR) provides this local workforce staff while the company maintains full operational control over the employees. This ensures HR compliance without disrupting core business.
Questions about your specific compliance needs? Our experts are standing by. Connect with us today!

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