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Analysis & Design of Optimum Global Workforce Expansion Strategy

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The benefits of global hiring should be accessible to everyone, from freelancers and startups to scaling companies and multinational organizations. Access to talent anywhere in the world can create opportunities far beyond cost efficiency, including broader talent pools, specialized skills, greater flexibility and new ways to build international teams.

But hiring globally does not necessarily mean that any standard cross-border employment model, such as using an Employer of Record (EOR), is the right solution.

In most jurisdictions, an EOR arrangement can raise fundamental regulatory questions around the nature of the relationship. If the EOR operates under a labour leasing licence, it is subject to the highly regulated legislation applicable to temporary work agencies, which can have severe adverse effects not only on the EOR but also on its clients. Without any such licence, there is a high risk that the arrangement is considered unlawful labour leasing, potentially exposing both parties to significant fines and other serious legal consequences.

EORs are not licensed to provide legal advice, and it could in any case not be independent advice because the EOR has a commercial interest in promoting its own EOR model. Moreover, employee transfers and terminations, switching EORs, or even just the seemingly simple act of terminating an EOR agreement can be extremely complex and expensive, making independent legal advice essential to ensure they are handled correctly.

HBD brings the legal expertise to navigate these situations and assess the regulatory implications of all available options. Furthermore, HBD can provide more compliant business models than traditional EOR services, including alternative EOR structures and non-EOR solutions designed to mitigate risks like labour leasing and misclassification.

HBD helps clients design their best workforce expansion structure, taking into account the applicable legal framework as well as their individual business needs.