Hiring a foreign employee is no longer limited to large multinational corporations. With remote work and global talent platforms, companies of all sizes can now access skilled professionals from around the world. However, international hiring comes with legal, payroll, and compliance complexities that must be handled correctly.

In this guide, we’ll explain how to hire a foreign employee step by step, common challenges businesses face, and how solutions like WorkMotion make global hiring simple and compliant.

Why Hire a Foreign Employee?

Hiring internationally allows businesses to:

• Access a wider and more diverse talent pool

• Fill skill gaps faster

• Reduce hiring costs in certain regions

• Expand into new markets without setting up a local entity

Whether you’re hiring a remote software developer, sales manager, or customer support specialist, global hiring can give your business a competitive edge.

Step-by-Step Guide: How to Hire a Foreign Employee

1. Decide How You Want to Hire

Before hiring a foreign employee, you must choose the right hiring model:

• Set up a local entity: Time-consuming and expensive

• Independent contractor: Simpler, but risky if misclassified

• Employer of Record (EOR): The fastest and safest option

An Employer of Record like WorkMotion legally employs the worker on your behalf, handling compliance, payroll, and local labor laws.

2. Understand Local Labor Laws

Each country has its own employment regulations, including:

• Minimum wage and working hours

• Mandatory benefits

• Termination rules

• Tax and social security contributions

Failing to comply can result in penalties or legal disputes. Using an EOR ensures local labor laws are followed from day one.

3. Check Visa and Work Authorization Requirements

If the employee will work in their home country, a visa is usually not required. However, if they need to relocate, you must consider:

• Work permits

• Residency visas

• Immigration timelines

WorkMotion supports global mobility and can assist with visa and relocation processes where required.

4. Create a Locally Compliant Employment Contract

Employment contracts must comply with local regulations and typically include:

• Job role and responsibilities

• Salary and payment frequency

• Benefits and leave entitlements

• Notice periods and termination clauses

WorkMotion provides locally compliant contracts tailored to each country, removing legal uncertainty.

5. Set Up Payroll and Taxes

Paying a foreign employee involves more than just sending salary payments. Employers must handle:

• Local payroll processing

• Income tax withholding

• Social security contributions

• Payslips and reporting

With WorkMotion, payroll and tax compliance are fully managed in the employee’s local currency.

6. Provide Mandatory Benefits

Many countries require employers to provide statutory benefits such as:

• Health insurance

• Paid leave

• Pension contributions

• Parental leave

WorkMotion ensures all mandatory benefits are provided while also allowing companies to offer competitive additional perks.

7. Onboard and Manage the Employee

Once hired, proper onboarding is essential for long-term success. This includes:

• Secure document collection

• Benefits enrollment

• Clear communication of company policies

WorkMotion offers a centralized platform to manage onboarding, contracts, payroll, and employee data globally.

Common Challenges When Hiring Foreign Employees

Hiring internationally without expert support can lead to:

• Employee misclassification risks

• Compliance violations

• Payroll errors

• Delays in hiring

Using an Employer of Record significantly reduces these risks while speeding up the hiring process.

Why Use WorkMotion to Hire Foreign Employees?

WorkMotion helps companies hire employees in over 160 countries without setting up local entities. With WorkMotion, you can:

• Hire legally and compliantly worldwide

• Run global payroll with ease

• Offer country-specific benefits

• Manage contracts and compliance in one platform

This allows you to focus on growing your business while WorkMotion handles the complexity of global employment.

Final Thoughts

Hiring a foreign employee doesn’t have to be complicated. By understanding local laws, choosing the right hiring model, and partnering with an Employer of Record like WorkMotion, businesses can build global teams quickly, legally, and confidently.

If you’re planning to expand internationally, WorkMotion provides the tools and expertise to make global hiring seamless.