When hiring for a role, there’s one goal among HR professionals that’s universal: find the best person for the job.
Now that the rise of remote work has made it easier than ever to hire anyone, well, anywhere, many companies are expanding their hiring beyond their company’s borders.
However, if a new potential hire isn’t legally authorized to work in their current location, it can quickly snowball into a compliance nightmare.
There are a lot of common myths and misinformation about visas and immigration. The laws are also complex and ever-changing, and following them to a “T” can determine whether an employee can legally work for your company — or even remain in the country.
Here’s what you need to know about obtaining the correct visas for your international employees.
Key takeaways:
- Misunderstanding visa or immigration laws can lead to severe business disruptions, including fines, audits, and even the deportation of employees.
- Every company needs to adhere to the same compliance standards when hiring across borders, from large corporations to small startups.
- Every country’s visa and employment rules are different, so working with local experts helps avoid costly legal mistakes.
Misconception 1: Remote Work Means No Visa Is Needed
Employers often assume that remote employees can work from anywhere and don’t require a visa. However, an employee still needs a legal right to work in the country where they reside.
For example, if your company wants to hire a U.S. citizen who lives in Spain, that individual must still have the legal right to be employed in Spain. If the potential employee is an immigrant to Spain or a digital nomad, you’ll need to ensure they possess the legal status to work there.
That’s why your hiring process needs to include verifying that someone is legally authorized to work in their country of residence — whether through citizenship or a valid work visa.
If that’s not the case, you’ll need to identify what type of visa they’ll need to legally work for your company, and start the visa application process. Otherwise, your company could face fines, and the employee could risk deportation — not to mention the disruption it can cause to your team.
Misconception 2: Any Visa Works for Employment
There are many types of visas, from student visas to tourist visas. However, those visas are tied to a specific purpose, e.g., attending school or travel. Simply holding a visa doesn’t automatically grant someone the right to also work in that country, even if they’re there legally.
Some countries do offer temporary work visas, such as a working holiday visa, but they have limits and can’t be used for permanent employment. For example, Australian citizens aged 18–35 can apply for the U.K.’s Youth Mobility Scheme visa, which grants them the ability to work in the U.K. for any British employer, but only for a period of up to two years.
Even if an employee holds a valid work visa, that doesn’t necessarily mean they can work for just any company. Many visas are employer-sponsored, meaning the visa is legally linked to the company that sponsored it. If the employee leaves that company, the visa is no longer valid for new employment.
In these cases, the new employer can’t simply “take over” the existing visa. They would need to apply for a new sponsorship and have the visa reissued under their company’s name before the employee can legally start working. This process can take time and may involve government fees, documentation, and proof that the role meets local employment requirements.
Misconception 3: Business Visas Cover Long-Term Work
Some countries grant business visas that can be used for meetings, conferences, or short-term activities. Germany, for example, offers a business visa that permits visa holders to conduct business in Germany for up to 90 days within a 180-day period. India also requires business visas, which are typically valid for one year and allow multiple entries.
Business visas are not intended for permanent work. Some employers mistakenly rely on business visas for extended projects instead of setting up direct employment in the country. The host country may expressly prohibit certain types of business activities while working under a business visa.
If companies misuse or abuse business visas, they can face severe financial consequences. For example, Infosys was fined USD 34 million in the U.S. for relying on business visas instead of professional worker visas for thousands of workers.
Misconception 4: Compliance Only Matters for Big Companies
Corporations occasionally make headlines for immigration or visa violations, but it’s a mistake to assume only large companies need to worry about compliance. In reality, immigration authorities strictly enforce visa and employment laws, regardless of a company’s size.
For smaller businesses, non-compliance can be particularly damaging, leading to significant fines, legal complications, and lasting reputational harm.
A small company in the U.K. was fined GBP 40,000 after it was discovered that an employee did not have the proper authorization to work in the country. The owner mistakenly believed he was employing the person legally and called the fine “devastating.”
Misconception 5: Hiring Foreign Workers as Contractors Minimizes Immigration Issues
Classifying an employee as an independent contractor can seem like an easy way to avoid immigration or visa issues. If independent contractors choose to pursue permanent residency in another country, the burden is on the contractor to maintain the right to work in that country.
However, local employment laws still apply, and most countries have strict regulations governing the classification and misclassification of employees. In the eyes of most employment laws, contractors have the freedom to manage their own work, unlike employees, whose schedules and methods are typically set by the company.
If you classify a worker as an independent contractor and it’s later determined that they are, in fact, functioning as an employee, you might face fines, have to pay back taxes, or owe the worker other benefits that would have been granted to an employee.
Misconception 6: EU Citizens Can Work Freely Anywhere Without Paperwork
EU residents can travel freely across member countries, but working in another country isn’t always as simple — different rules and requirements may apply.
Under EU rules, workers are only supposed to pay social security taxes in one country at a time. To make sure they don’t end up paying twice when working in another country, employees need an A1 Certificate, which proves they’re contributing in their home country. Even short business trips count. Without the certificate, employees could be on the hook for local taxes from the moment they enter another EU country for a work-related visit.
If you have EU-based employees, ensure they have the necessary documentation at all times when traveling to another EU country. Otherwise, you risk triggering local tax requirements, legal issues, and project delays.
Misconception 7: A Work Visa Means You’re Fully Compliant
The reality is that obtaining a work visa is just the first step. Full compliance also requires adhering to a country’s payroll regulations, tax rules, and benefits obligations — all of which can change frequently.
For instance, a company might hire an employee with a valid work visa but neglect to register them for local taxes, or fail to meet updated visa requirements when it’s time to renew.
Mistakes like these can lead to costly fines and even jeopardize the employee’s legal right to work in the country.
Misconception 8: Immigration Rules Are the Same Everywhere
It’s easy to assume that once you’ve figured out one country’s immigration laws, other countries will essentially follow the same process — but that couldn’t be further from the truth. Every country has its own visa categories, eligibility rules, and documentation requirements.
Even within the EU, each nation runs its own visa system and work authorization process. What’s acceptable in one country might not apply just a few borders over.
That’s why local expertise is key. Understanding which visa to apply for, staying up-to-date with compliance rules, and verifying an employee’s legal right to work can help your company avoid costly mistakes and prevent unnecessary delays.
Real-World Consequences of Getting it Wrong
If your company is found to have violated local immigration and visa laws, you can face significant fines. These are usually applied to each employee, and can range from hundreds to thousands of dollars per violation.
Penalties also increase for companies that repeatedly violate the laws. That means companies employing hundreds of unauthorized workers may face fines of millions of dollars.
Some businesses knowingly hire unauthorized workers and deliberately skirt immigration and work visa requirements. If caught, these companies can face criminal charges, including imprisonment.
Even honest mistakes can have serious consequences. A single compliance slip-up can lead to audits or government investigations that drain time and resources.
And if word gets out, it can hurt your company’s reputation — making it harder to win new business or attract top talent down the line.
Employees can also face hardship, such as deportation or being barred from re-entry into a country.
How to Navigate Visas the Right Way
If your company is planning to move talent across borders or hire someone who isn’t a citizen of the country where they currently reside, obtaining the correct work visa should be at the top of your to-do list.
When hiring or transferring someone who you know will need a work visa, it’s essential to double-check that they will be able to work in that country legally — and for your company specifically. For example, never assume an existing visa automatically carries over to your company; many are tied to a specific employer or role.
If the employee needs to apply for a new visa, take the time to carefully review their documentation, follow the application process, and complete any required background checks.
Work visa and immigration laws are so complex that you don’t want to risk getting it wrong. The best way to ensure compliance with the visa process is to work with an immigration lawyer, local compliance experts, or through an Employer of Record (EOR).
Avoid Visa Headaches With RemoFirst’s Expert Assistance
Falling for these common misconceptions about visas and immigration law is how companies end up in compliance hot water.
The safest bet is not to go it on your own, but instead rely on experts who can ensure that you are compliant with all immigration and visa laws in the present, and as they evolve over time.
At RemoFirst, we help companies navigate visa and work permit applications in 85+ countries, helping you avoid costly mistakes.
We also help companies:
- Employ staff in 185+ countries
- Run background checks
- Ship equipment to new hires
- Manage global payroll
- Offer competitive benefits, including private health insurance
- Hire and pay contractors in 150+ countries
Want to know more about how we can help your company hire globally? Schedule a demo, and we’ll walk you through the process of how easy it can be to grow your team across borders.
