What is a global employment solution?
Global employment solution
A global employment solution is a software platform or service that enables you to hire remote workers based anywhere in the world. Global hiring comes with a lot of legal and compliance issues and the role of a global employment solution is to overcome those issues and enable you to employ internationally with minimal hassle.
What are some of the things that a global employment solution can help with?
There are a number of tasks associated with employing a globally distributed workforce that a global employment solution can help with, for example:
- Hiring in other countries
- Drafting compliant contracts
- Running international payroll
- Managing time-off policies
- Paying the right amount of tax
- Providing healthcare and other benefits
In all the steps mentioned above, a good global employment solution ensures your company follows the law in every country that you hire in.
How does a global employment solution work?
There are many different models that companies use to compliantly hire in foreign countries, such as:
Employer of Record (EOR)
‘EOR’ is a term used to describe a company that formally employs team members while, in reality, the team members provide services to a different organization. This enables companies to use EORs located in other countries to hire staff based on local laws and norms (see ‘GEO’ below).
Professional Employer Organization (PEO)
With a PEO, both the employer and the PEO co-employ team members. While the PEO can help reduce the administrative burden of global employment, the company must be an established entity in the country from which it hires staff.
Global Employer Organization (GEO)
Global employer organization (GEO) and global PEO (GPEO) are terms used to describe an EOR which employs team members who live in jurisdictions outside of those in which a customer (company) is incorporated.
Find out more about which global employment solution is best for your company.
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.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.