A global contractor, also referred to as an international contractor or foreign independent contractor, is an independent contractor who works for a business while residing in a country outside of where that business is based. For example, a software engineering contractor based in Lebanon working for a tech startup in the United Kingdom could be referred to as a global contractor.
Many companies believe that hiring contractors abroad negates the complexities around labor laws and payroll that companies face when hiring employees abroad. However, there are also many complexities around engaging with contractors in foreign countries, and companies should be aware of these risks before hiring.
For example, different countries have different rules around misclassifying contractors as employees. Check out our Worker Misclassification Analyzer to learn more about the various regulations around the world.
When onboarding a global contractor, you can’t just use a template contract that you use for contractors based in the same jurisdiction as your company. Instead, you need to make sure that the contract accounts for all the complexities of hiring in that location.
Paying a contractor can be a more complex process as well. Different jurisdictions have different tax rules that a local accountant or employment expert might need to navigate.
Oyster’s global employment platform has dedicated contractor management tools that enable you to onboard and pay international contractors without the usual compliance headaches. Find out more about our global contractor management tools.
Disclaimer: This article and all information in it is provided for general informational purposes only. It does not, and is not intended to, constitute legal or tax advice. You should consult with a qualified legal or tax professional for advice regarding any legal or tax matter and prior to acting (or refraining from acting) on the basis of any information provided on this website.
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