Hiring internationally has given businesses greater access to talent worldwide, helping them find the skills, knowledge, and experience they need to succeed. However, expanding your business globally is not straightforward. Because immigration and employment laws vary by country, the process must be handled correctly to ensure the international employee can continue working compliantly.
Whether you are hiring a single employee from overseas or managing an entire workforce of international talent, understanding the clear, necessary processes can help you complete global recruitment with ease. By taking these precautions and understanding each step involved, you can ensure compliance and keep the process as smooth as possible.
To make your global hiring process as smooth as possible, we have compiled the ultimate checklist for hiring international employees to support your business goals every step of the way.
- Decide where your employees will be based:
The first crucial step is deciding whether your employees must relocate for their role or can work remotely. Your employees’ location can have a major impact on employment laws, tax requirements, benefits, payroll, and immigration obligations, especially if they remain in their own country.
Therefore, it is important to consider:
- Where the employee is based.
- Whether or not they will be working remotely, from an office, or a combination of both.
- Whether they will be travelling between countries.
- Whether the position is temporary or permanent.
- Whether or not your business already has an established presence in their country.
Understanding these details early in the process can help determine whether any arrangements need to be made before the employee begins.
- Immigration and Right to Work requirements:
If your employee is relocating to another country, they will likely need a work visa, work permit, or other documentation to work for the business legally. Requirements often vary depending on their nationality, length of stay, destination and their role, but it is important to keep this in mind when preparing for their transition.
For example, in the UK, employers must check that employees have the ‘right to work’ before they begin employment, which can often be completed with an online check or appropriate documentation.
For international employees, immigration requirements can often be complex. Using a global mobility service can make the transition process much simpler, helping businesses understand exactly what needs to be done and how to complete any forms within the allotted time frame.
- Understand local employment laws:
Employment laws vary from country to country. It is incredibly important to understand the varying laws from each country in which you hire, including:
- Working hours.
- Annual leave allowance.
- Sick pay.
- Termination rules.
- Notice periods.
- Probation.
Because these rules vary, international hiring can be much more complicated. For example, a contract used for an employee in one country may vary significantly for an employee in another country. Research each country thoroughly and ensure each contract is created correctly in line with its specific rules and requirements.
Working with an expert global HR specialist can ensure all information is accounted for and that employment laws are followed every step of the way.
- Choose the right employment structure:
Once you have the correct paperwork for the employee, it is important to choose how you employ them. For example, depending on the circumstances, you may be able to hire the employee through an existing overseas entity. However, establishing a local entity for a single employee, or a small team, can often be very time-consuming. This is where an EOR can be incredibly useful.
For example, an EOR (Employer of Record) lets businesses hire internationally without establishing a local entity in each country, simplifying the process and ensuring your employee can start working as soon as possible.
- Establish an international payroll structure:
Once all official documentation is complete, employees must have a payroll structure arranged before the start of their employment. However, this is often much more complicated than simply paying the employee into their international bank account.
For an international employee to be paid, it is incredibly important to manage local tax, benefits, varying currencies, social security contributions, reporting requirements and different global payroll deadlines. If any of these structures are not followed, it can cause costly fines for the business and damage its reputation.
To ensure all global payments are made with ease, a global payroll provider can simplify the process, stay up to date with changes to local laws and regulations, and ensure all employees are paid accurately and on time, every time.
- Tax, social security, benefits and compensation:
Similarly, tax and social security obligations play a major role in the process and must be considered before the employee receives their first pay. Depending on where the employee works and lives, tax and social security contributions will vary, especially if the employee is working remotely, as working locations can affect tax positions.
Tax should always be treated as a priority, planned into the process from the outset. Using a specialist global payroll system can help you understand each process clearly and avoid fines.
Benefits and contributions must also be adapted to meet the local expectations and legal requirements of any country the employee operates from. This can vary from country to country, including healthcare benefits, pension contributions, paid leave and allowances.
If an employee is also relocating to another country for their role, support may also be needed. This could include:
- Banking.
- Travel arrangements.
- Healthcare.
- Visas and work permits.
- Temporary/permanent accommodation.
- Family relocation.
- Local registration.
- Cultural and language support.
Global mobility services can make the transition much easier, providing support at every step of the relocation process.
- Preparing a compliant contract and preparing for a smooth onboarding process:
Before the employee starts, ensuring that their contract is correctly processed and that all agreements are finalised, depending on the country where they will be working, is incredibly important. The contract should outline all key terms and conditions, including their salary, working hours, holiday entitlement, benefits, responsibilities and notice periods. It should also be made clear where the employee is expected to work, especially if they are working remotely or travelling internationally.
Once the contract is signed and completed, it is just as important to ensure the employee receives the same level of support as domestic employees, with guidance throughout their start to reflect their circumstances and ensure a smooth transition.
Before their first day, ensure they have received all necessary equipment, are logged into all systems they will need access to, and have all the information they need. If the employee is relocating, ensure they have practical information about their new location/address and provide as much support as possible for a positive transition.
Communication is your best friend when it comes to a new international employee. Transitions can be incredibly stressful and anxiety-inducing, so a structured onboarding process can help them feel welcomed, prepared, and supported from day one.
It is also incredibly important to monitor compliance even after the employee has started their role. Tax requirements, payroll regulations, and immigration rules can change, and businesses must regularly review all arrangements to ensure they remain compliant. Using a global payroll provider can ensure local guidance is monitored throughout employment, helping navigate immigration and employment laws, payroll, and international tax requirements.
International Hiring Made Simple:
While hiring internationally can unlock valuable opportunities to grow and expand a business, it can also make management much more complex. From immigration processes to employment contracts, each step must be carefully managed to ensure all parties are compliant and trustworthy.
A global mobility partner can help coordinate the process end-to-end, from employee relocation to HR support. We support businesses expanding their international workforce, from global mobility services to payroll, ensuring employees can begin their employment with confidence.
By following a clear checklist and partnering with a global specialist, your business can create a confident, compliant organisation for the employee and ensure their role is seamlessly integrated.
For more information, contact us today and start your journey to international employment with ease.