We are unsure who is the legal employer in the foreign country since we don't have a legal entity there. Is it our company or WorkMotion? How does this work?
Our local partners through WorkMotion are the official employer of record, for all aspects associated with compliant onboarding.
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, and labor law).
You as a client do not have to take on those responsibilities. Our local partners take on all compliance responsibilities of an employer in order to enable your company to hire talent globally. Some of these responsibilities include:
- Issuing the locally compliant employment contract
- Setting up payroll
- Local registrations of the employee with authorities
- Calculating monthly payroll
- Payments to the employee (=salary), tax authorities, social security, etc