Employment Classification

 Correctly classify workers as employees vs. independent contractors (misclassification carries heavy penalties in most countries)
 Review local definitions — many countries (UK, Australia, EU) have a third “worker” or “dependent contractor” category
 Confirm if contractor agreements need to be registered with local authorities
 Audit existing contractors for reclassification risk before scaling hiring

Employment Contracts

Draft contracts in the local language (legally required in France, Spain, Poland, and others)
 Include mandatory clauses per local labor law (notice periods, probation, termination conditions)
 Avoid copy-pasting a US/UK contract template — local courts will apply local law regardless
 Have contracts reviewed by in-country legal counsel
 Specify governing law and jurisdiction clearly

Compensation & Payroll

 Confirm the statutory minimum wage and ensure compliance
 Check mandatory 13th/14th month pay requirements (common in Latin America, Philippines, parts of Europe)
 Understand mandatory pay frequency (weekly, bi-weekly, monthly — varies by country)
 Set up compliant local payroll or partner with a global payroll provider
 Account for foreign exchange risk in salary planning
 Understand tax withholding obligations as an employer

Statutory Benefits & Entitlements

 Map mandatory paid annual leave (ranges from 10 days in the US to 30+ in some EU countries)
 Understand statutory sick leave and pay obligations
 Check maternity, paternity, and parental leave requirements
 Know public holiday entitlements (and whether they must be paid)
 Check mandatory severance pay rules upon termination
 Understand redundancy consultation requirements (EU requires collective consultation for mass layoffs)

Social Security & Tax Contributions

Register as an employer for social security/national insurance contributions
 Understand employer vs. employee contribution splits
 Check if a totalization agreement exists between countries (avoids double social security taxation)
 Confirm pension/retirement fund obligations (auto-enrollment in UK, superannuation in Australia)
 Understand payroll tax filing deadlines and reporting obligations

Work Authorization & Visa Compliance

 Verify the candidate’s right to work before making an offer (legally required in most countries)
 Understand visa sponsorship obligations and costs if hiring foreign nationals
 Check if shadow payroll is required for international assignees
 Track visa and work permit expiry dates — employing someone with expired authorization carries criminal liability in many jurisdictions

Data Privacy & Background Checks

 Ensure hiring practices comply with local data privacy laws (GDPR in Europe, LGPD in Brazil, PIPL in China)
 Get explicit, informed consent before collecting candidate data
 Understand what background checks are legally permitted — criminal, credit, and reference checks are restricted in many countries
 Define data retention periods for unsuccessful candidates
 Ensure your ATS and HR systems are compliant with cross-border data transfer rules

Anti-Discrimination & Equal Opportunity

 Know what protected characteristics apply in the country (age, religion, marital status, sexual orientation — these vary significantly)
 Ensure job postings do not contain language that could be deemed discriminatory locally
 Understand pay equity reporting requirements (mandatory in EU, UK, and several US states)
 Train hiring managers on local discrimination law before interviews begin

Onboarding & Documentation

Onboarding & Documentation

Collect all mandatory new hire documentation required by local law
 Issue a written statement of employment particulars within the legally required timeframe (Day 1 in the UK, for example)
 Register the employee with relevant government agencies (social security, tax authority, labor ministry)
 Complete any mandatory pre-employment medical checks where required (common in parts of Asia and the Middle East)
 Provide mandatory workplace health & safety information

Termination & Off-boarding

Understand notice period requirements — these are often statutory minimums that contracts cannot override downward
 Know if “at-will” employment exists — it does not in most countries outside the US
 Follow required disciplinary and performance management procedures before terminating for cause
 Calculate and pay all final entitlements correctly (accrued leave, severance, notice pay)
 Understand garden leave rules and post-termination restriction enforceability
 Check if a government filing or notification is required upon termination

Ongoing Compliance Monitoring

Subscribe to labor law updates in each country you operate in
 Audit employment contracts and policies annually against any legal changes
 Maintain a compliance calendar with payroll filing, reporting, and renewal deadlines
 Appoint a local HR or legal contact in each country for escalations
 Conduct periodic audits of worker classification, especially for contractors