If you want to grow your business, it might be time to start thinking globally.
Hiring remote talent from around the world gives you access to a deeper pool of applicants, unique skill sets, and fresh perspectives. Plus, with teams working across different time zones, your business can keep moving forward 24/7.
However, if you start hiring blindly, you can expose your company to significant financial and legal risks. That's because there's much more to global hiring than finding the right candidate and signing a contract.
Before you start hiring across borders, it’s essential to ask the right questions.
Key takeaways:
- Most countries legally mandate that businesses provide statutory benefits, like paid vacation, sick leave, and parental leave.
- Employers typically aren’t required to provide private health insurance, but it’s a perk they may need to offer to attract top talent.
- Working with local experts can help companies ensure they aren’t accidentally violating any labor or tax laws when hiring in a new country.
1. What Benefits Are Expected in Each Country Where I’m Hiring?
Employee expectations around benefits can look wildly different depending on the country. And in many cases, it’s not just what employees expect, it’s what’s legally mandated.
For example, employers must provide 16 weeks of paid maternity leave in Canada at 55% of the employee’s typical earnings. Meanwhile, pregnant Czech employees receive 28 weeks of leave at 70% of their salary, while in Norway, mothers are entitled to 49 weeks of fully paid leave.
Another commonly mandated benefit is the 13th-month salary, which is standard in Brazil and the Philippines, while in Greece and Spain, employers are expected to pay 13th-month and 14th-month salaries.
There are also some countries, like the Netherlands and Singapore, where offering a 13th-month bonus isn’t a legal requirement, but it’s customary, and it might be difficult for businesses to attract and retain employees if they don’t.
Other benefits that are often legally mandated by a country’s employment law include:
- Paid vacation and holiday leave
- Pension plans
- Sick leave
In addition to required benefits, there are a variety of in-kind benefits that are customary to offer, depending on the country, including:
- Private health insurance
- Commuter benefits
- Meal vouchers
- Additional paid time off
- Paid sick leave (if mandatory leave is unpaid or partially paid)
- Gym memberships
- Fully paid maternity leave (in countries where it’s not legally required)
- Child care
- Professional development stipend
- Flexible work
Overwhelmed yet?
Rather than expect your internal HR team to become experts on international employment law, partner with an Employer of Record (EOR) like RemoFirst. An EOR can provide guidance to ensure that you’re offering a competitive benefits package that meets not only the legal requirements but also includes the optional benefits that employees in a particular country would expect.
At RemoFirst, we work with local partners who are experts in their country’s employee benefits, so you can feel confident that you’re checking all the boxes when crafting your employment offer.
2. Is Private Health Insurance Mandatory?
In some countries, providing access to health insurance isn’t just a nice-to-have; it’s the law. Many countries, particularly in Europe, have specific mandates that employers must follow regarding health coverage.
But it’s not limited to Europe. For example, in the United Arab Emirates, employers must provide medical insurance for all employees, including citizens and foreign workers, such as digital nomads.
Meanwhile, in Mexico, companies must register their employees with the Mexican Social Security Institute (IMSS), which provides access to public healthcare and other Social Security benefits.
Failing to meet those requirements can expose your company to noncompliance penalties and leave your employees without health coverage.
For example, in France, Social Security authorities can conduct inspections and may impose financial penalties for non-compliance. Meanwhile, German employers can face fines of up to EUR 50,000 for not properly registering employees for health insurance or failing to pay contributions.
In many countries, including the Philippines and Germany, it’s common practice for companies to also fully or partially subsidize private health insurance. These health plans typically provide enhanced coverage, often covering expenses not paid for by the standard healthcare system.
Even if you're hiring in a country where it's not mandatory to provide private health insurance, it's something you should consider. Health coverage is one of the most important factors job seekers weigh when evaluating an offer.
That’s especially true in the U.S., where employer-sponsored health insurance is the primary source of coverage since there is no national healthcare system.
3. Does Our New Hire Need Visa Sponsorship?
Just because someone can work for you remotely doesn’t mean they’re legally allowed to do so in their country, or yours. If a candidate lives in a country where they’re not a legal resident, or plans to relocate, you could unintentionally create legal and tax complications for your business (and the employee).
If an employee is found to be working without the necessary visa or work permit they can face various penalties, up to and including deportation. Employing someone without proper legal authorization can also result in fines for employers and potential criminal charges.
Depending on their residency status, you may need to look into visa sponsorship, work permits, or cross-border tax compliance. Failing to do so could result in penalties, payroll misclassification, or even the inability of the employee to continue working legally.
Changes in immigration laws can make the visa application process tricky, but EORs help take that complexity off your plate. They stay up to date on shifting regulations and adjust their processes to keep things compliant and on track.
An EOR will assume the primary responsibility for obtaining a visa. This includes:
- Determining an employee’s eligibility
- Requesting any required documents
- Confirming that all supporting documents meet local requirements
- Working with immigration authorities
- Maintaining compliance with local labor laws
- Minimizing the risk of penalties, legal issues, or delays
- Working to mitigate any issues if a visa application is initially denied
Partnering with an EOR to obtain a visa has several advantages, including helping to speed up the process. Securing a visa can often take months, but EORs have the local expertise and established connections to help move things along faster, so you can bring international talent on board without unnecessary delays.
By handing off visa applications to a trusted EOR partner, companies can avoid costly delays, reduce the risk of errors, and ensure a smoother experience for everyone involved.
At RemoFirst, we can help you navigate the process of applying for visas and work permits for employees in 85+ countries. Our team will assess the eligibility and associated costs, submit the application, and keep you in the loop every step of the way, from application to approval.
4. Is Local Guidance Essential to Comply with Labor Laws?
Short answer: yes. Global employment law is notoriously complex, and it changes often.
From working hours and termination procedures to required leave policies and holiday pay, what works in one country may not meet employee expectations, or even be illegal in another.
That’s why having reliable, local expertise is critical. Whether through in-country legal partners or an EOR, local guidance helps you avoid costly missteps, stay compliant, and offer competitive packages tailored for a specific region.
EORs can also help companies identify and mitigate potential risks. On a recent episode of our podcast, What HR Leaders Are Really Thinking in 2025, one of our senior account executives, Fernando Alves, shared a story that demonstrated how we were able to help a client quickly (and compliantly) grow their team.
“We had a client that started expanding rapidly into Europe and was planning to hire several remote employees in different countries,” said Fernando. “They consulted us early on to map out the local employment laws, tax implications, and payroll requirements before making any offers to the employees. And during this planning phase, we identified a critical issue.
“Without a proper local employment setup, the company risked creating a permanent establishment in one country. This could trigger significant corporate tax liabilities and legal penalties. But because they engaged early with RemoFirst, we structured the hires to remain fully compliant, handling local contracts, payroll, and benefits. This saved the customer from costly fines and a complicated tax audit down the line.”
Early compliance planning with local experts isn’t just bureaucracy, it’s a strategic safeguard that protects your business against risks — like permanent establishment — as you scale globally.
5. Can My Employer of Record (EOR) Do More Than Run Global Payroll?
Too often, companies think of EORs as just a way to pay their international employees. But, as we’ve already covered, an EOR is your first line of defense against labor law and compliance issues.
Simply put, working with an EOR allows companies to legally employ workers in other countries without setting up a local legal entity or inadvertently violating local employment laws.
An EOR like RemoFirst can manage a variety of HR duties in addition to payroll, including:
- Background checks
- Employment contracts
- Protection for your IP
- Shipping equipment
- Onboarding
- Tax withholdings
- Social Security contributions
- Local employee benefits, including health insurance
- Termination and offboarding
An EOR will also ensure you correctly classify workers as employees or contractors. Laws regarding what constitutes a contractor differ by country. If you get it wrong, you can face fines and other penalties.
If you only use your EOR to cut paychecks, you might miss out on critical support that protects your business. At RemoFirst, we do a lot more than process global payroll — we provide real guidance.
Build Your Global Team With RemoFirst
If you’re ready to expand hiring internationally, then RemoFirst is here to help. We enable companies to employ workers in 185+ countries, and hire and pay contractors in 150+ countries.
Our team ensures your business fully complies with local employment laws in every country where you hire, and that your employees and contractors are paid on time and in their local currency.
Ready to learn more? Book a demo to find out how we can help you grow your global workforce.
