Expanding your team into new markets means adding people on the ground with the right mix of experience and knowledge. But hiring the right people where you need them comes with its own set of challenges — from complying with local employment laws to implementing international payroll and benefits. We’ve put together eight things every Canadian business should consider before making your first international hire.

 

1 Employment agreements

Every country classifies employment types differently, from contractors to full-time employees. These different employment types are the framework for employment agreements, and it is vital to understand the requirements for each, from how taxes are calculated to how you can severe employment if necessary.

 

2 Employment law

Employment law can vary widely from country to country, state to state, and province to province. It is critical to understand your obligations as an employer regarding topics like statutory holidays, severance pay and paternity and maternity leave rules.

 

3 Compensation and benefits

You’ve put in the effort to create a total compensation package that makes sense for your home market. But hiring internationally can mean starting over. Each new location you hire in will have market expectations for salary, benefits and holidays. Understanding these will set you up for success.

 

4 Legal requirements to work

Similar to hiring where you’re based, you need to confirm that your international hire is legally allowed to work in the country they are residing. Many countries across Europe and Latin America have created specialized digital-nomad visas to attract skilled workers. Still, you must confirm if they can legally work for your business while on one of those visas.

 

5 Background checks

Resumes and references can only tell so much about a potential hire. Getting a complete background check, including a police check, can mean the difference between a great first hire and a disaster in the making.

 

6 Taxation and other legal requirements

Having an international employee or employees means you are responsible for taxes and any other local legal requirements. Hiring without a legal entity that understands these rules and regulations could put your business at risk both at home and abroad.

 

7 Data security and confidentiality

Employers must protect employees’ personally identifiable information and other sensitive data. Regulations such as the European Union’s General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA) have severe penalties for employers and other entities in the event of a privacy or data breach.

 

8 Employer of record

Employing someone in another country requires that you have a legal entity established to act as an employer of record (EOR). This entity functions as the local HR or People team to manage recruiting, hiring, benefits and terminations. Finding the right EOR to help you build the right team can be a challenging and time-consuming process.

 

Ready to make your first hire?

Communitech Outposts offers a tailored Employer of Record service designed to supercharge the growth of your business outside of Canada. Quickly hire and onboard international employees and let us take on administrative responsibilities like local tax, benefits, pensions and in-country compliance.

 

Learn more about Communitech Outposts.