Who is the employer - WorkMotion or our company?

Question 

 We are unsure who is the legal employer in the foreign country since we don't have a legal entity in there. Is it our company or WorkMotion? How does this work?

Answer

Our local partners through WorkMotion are the employer, not your company.

Employing talent abroad is linked to several compliance risks: on the corporate level (Permanent Establishment), and in relation to the employee (employment taxes, social security, labor law).

You as a client don't have to take on those responsibilities. Our local partners take on all of the responsibilities of an employer in order to allow your company to hire talent globally. Some of these responsibilities include:

  1. issuing the employment contract
  2. setting up payroll
  3. local registrations of the employee with authorities
  4. calculating monthly payroll
  5. payments to the employee (=salary), tax authorities, social security, etc.
  6. ensuring compliance with local labor regulations, etc.