How companies can hire remote employees in multiple countries legally

Expanding a remote workforce across borders requires more than posting jobs internationally. Companies must follow local employment rules, manage payroll and taxation correctly, establish compliant contracts, and protect employee data. Understanding compliance, onboarding, and costs up front helps reduce legal risk and supports smoother HR and benefits administration across multiple jurisdictions.

How companies can hire remote employees in multiple countries legally

Compliance and regulation

Hiring employees in multiple countries starts with understanding local regulation and compliance requirements. Each jurisdiction has distinct rules for employment status, mandatory contributions, working hours, termination protections, and recordkeeping. Companies should map applicable employment laws before hiring, identifying whether local labor law or international agreements govern a role. Relying on local services or legal counsel can help interpret complex areas such as worker classification, collective bargaining rules, and sector-specific regulation. Keeping a centralized compliance record streamlines audits and ensures consistent adherence to evolving rules across a global remote workforce.

Payroll and taxation

Payroll and taxation are core operational elements when hiring internationally. Employers must withhold and remit payroll taxes, social contributions, and any statutory benefits according to local tax codes. Cross-border payroll requires coordination of pay cycles, currency conversion, and reporting. Data about employee earnings must be stored securely and made available for statutory filings. Many companies use specialist payroll providers or EOR arrangements to manage withholding, tax reporting, and local filings, reducing exposure to penalties and simplifying administrative overhead for HR teams handling remote employees.

Onboarding and contracts

Onboarding remote employees in other countries involves more than orientation: it includes compliant contracts, registration, and local documentation. Contracts should reflect local employment law, cover working hours, probationary periods, termination terms, and intellectual property assignment where permitted. Onboarding workflows must collect legally required data such as tax IDs, right-to-work evidence, and bank details for payroll. Digitized onboarding platforms can streamline paperwork while maintaining secure storage of personnel data. Ensuring contract language aligns with local mandatory clauses is essential to avoid unenforceable terms or unexpected liabilities.

HR and benefits

Delivering HR services and benefits to a global workforce requires alignment with local expectations and legal entitlements. Statutory benefits—paid leave, parental leave, social security, and health coverage—vary by country and often cannot be substituted with equivalent private offerings. HR teams should design benefits packages that combine mandatory local benefits with company-provided options where allowed, and communicate clearly about enrollment, eligibility, and local points of contact. Central HR policies must be flexible to accommodate jurisdictional differences while preserving consistent global standards for performance management and employee relations.

Global remote workforce and data

Managing employee data across borders raises both operational and regulatory challenges. Data protection laws such as GDPR and other national regime requirements govern the collection, storage, transfer, and deletion of personal information. Employers must put in place data processing agreements, maintain secure systems, and limit access to sensitive HR data. When using global platforms for onboarding, payroll, and benefits, confirm the vendor’s data residency and security practices satisfy local regulation and internal policies. Transparent privacy notices and documented consent processes help reduce legal risk for remote hiring in multiple countries.

Costs and hiring models

Costs vary depending on whether a company establishes a local entity, contracts independent consultants, or uses an Employer of Record (EOR) to hire employees under local employment. Key cost drivers include employer social charges, statutory benefits, onboarding and payroll fees, local compliance management, and vendor service fees. An EOR model shifts many administrative and compliance tasks to the provider, often at a per-employee monthly fee plus payroll and statutory costs. Estimating total cost requires factoring in country-specific employer contributions, currency effects, and any setup or termination fees. Below is a comparison of several established EOR service providers and typical cost ranges.


Product/Service Provider Cost Estimation
Employer of Record (EOR) service Deel Approx. $300–$700 / employee/month
Employer of Record (EOR) service Remote Approx. $300–$700 / employee/month
Employer of Record (EOR) service Papaya Global Approx. $300–$800 / employee/month
Employer of Record (EOR) service Globalization Partners Approx. $600–$1,200 / employee/month
Employer of Record (EOR) service Safeguard Global Approx. $400–$1,000 / employee/month

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

Conclusion

Hiring remote employees across multiple countries legally requires a coherent approach that covers compliance, payroll, onboarding, taxation, contracts, HR, benefits, data protection, and cost planning. Choosing the right hiring model—direct entity, contractor, or EOR—depends on scale, control needs, and the company’s tolerance for administrative complexity. Early legal and payroll planning, secure data practices, and clear contracts reduce risk and make international hiring more predictable for both employers and employees.