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The world may be more connected than ever, but navigating a patchwork of local employment laws remains a major challenge for global businesses, writes Kat Theobald.
It is no secret that the internet, social media, and global employment have brought people and perspectives together like never before. This interconnectedness is transforming the way we live, work and interact with each other. Now, in 2025, in part thanks to flexible working policies, people can work from anywhere, and 42 per cent of employees now state that they would like to work abroad at some point. Similarly, a record number of people are choosing to remain in their country of residence but find remote employment overseas.
Businesses choose to employ individuals from around the world for multiple reasons, some of which include attracting and retaining top global talent, expanding into new markets, establishing temporary overseas project teams and enhancing diversity. Perhaps your business has experienced one of these or is considering it as part of your future strategy?
Whatever the reason for global employment, one thing is certain – it needs to be handled properly. Failure to do so could result in significant fines and penalties, which can ruin a company’s reputation, revenue and ability to recruit in the future. Employees on the receiving end can also be punished, through no fault of their own, and even be subject to deportation in extreme cases if visas are invalid, for example.
I do not believe that most companies set out to deliberately manipulate the system; instead, there is just a general lack of understanding, or worse, they adopt a “head in the sand” approach, with companies hoping the consequences never find them. To some extent, it is hardly surprising so many take this approach. Managing different laws and compliance rules and regulations for each country is incredibly confusing and far more complex than people think.
Alongside tax systems, visas, contracts, and payroll procedures, there are even different ways to process expenses across countries, for example. It is not an exaggeration to say that even just one small mistake could mean a company is non-compliant and risks breaking the law.
So, how do organisations overcome these issues and ensure that they do not commit any offences? The answer is simple: use an expert, which, in this case, is an employer of record (EOR). We streamline global hiring by acting as the official employer for international workforces and can do this without setting up local entities or navigating complex employment laws. It is also far more cost-effective for us to manage this process rather than handling it internally.
Imagine how many hours it would take an HR manager to ensure compliance across all aspects of employment, from onboarding to payroll, from locally compliant contracts to employee benefits. It would be simply too much work for an individual to undertake alongside their regular responsibilities, so it would likely require the recruitment of a couple of additional team members. These would require training, months of paperwork preparation, and significant capital investment.
Therefore, my message is simple: if you or your business is expanding overseas, for whatever reason, don’t let complex local laws get in the way or run the risk of non-compliance. Choose an expert EOR who knows how to handle the process and can save you time, money and stress. This, in the long-term, will keep your global employees protected, happy and healthy.
Kat Theobald is head of business solutions at Peak PEO.
