International Team Recruitment

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International Team Recruitment

Your Checklist for Speedy and Effective Recruitment

Rose McCarter-Field

By Rose McCarter-Field

Recruiting a team in another country? Here is your essential checklist to ensure everything runs quickly and smoothly. Recruit a skilled team fast. Stay legally compliant with your contracts and international payroll.


Understand the terminology in that country

The job title and terms associated with your job will have different meanings in every country. Check your local terminology! Or ask a global HR expert to help!


Understand the working values of the country

Everything from legal holiday requirements to expected working conditions vary between each country. It’s worth getting a global expert involved who can help you to ensure you are providing the right offer to potential recruits.


Know your payroll legislation

The legal payroll requirements such as income tax will be different, make sure your payroll stays legally compliant when you start the team.


Know the employment law

Employment laws and cultural working expectations are different in each country. Make sure your company is compliant. At Project Recruit we work with a network of legal experts across 32 countries, so that our clients can gain assurance of local compliance across their globally situated offices.


Get Experienced Assistance

The nuances of recruitment and payroll in each country can be a minefield. Ensuring legal compliance is essential! It’s worth getting an expert involved to smooth the process, to make it run both quickly and in a legally compliant way.

As a client of Project Recruit, you have assurance of compliance with international tax legislation and anti-money laundering legislation.

Stay compliant with international laws now, and laws as they change. Gain access to our network of experts across 32 countries for seamless, reliable international payroll management.

Get in touch with any queries +44(0) 20 3551 5300


Workplace Internationalization has Triggered a Change in Tax Liabilities

international team on payroll

Workplace Internationalization has Triggered a Change in Tax Liabilities

The legal obligations of companies are changing as the workplace goes global.

Rose McCarter-Field

By Rose McCarter-Field

We live in a world of international working and localised tax legislation. How do companies manage the complex tax requirements for an international workforce? How is government tax legislation changing to deal with an increasing number of people working for companies in a different country to where they reside?

There is an increasing trend to remote and international working which has been accelerated following the Brexit vote and the pandemic. Following the Brexit vote, the number of people leaving the UK to live in the EU rose by 30% (1). From 2016-18 this averaged at 73,642 people emigrating per year (2). As a response to the pandemic, the 20 countries with the highest number of COVID-19 cases sent 37% of migrants home (3). In both instances, many people continued to work for their UK employer after leaving the UK. But, who is receiving their tax? And who should be receiving their tax? The question may sound obvious, but workforce internationalization is resulting in significant amounts of tax avoidance.

If a programmer for example, has gone home to Germany but continues to work for the same company as they did in the UK, who are they paying income tax to? And is that employee aware that they need to pay income tax in their own country? In this particular instance the two countries have an agreement to avoid double taxation, but it isn’t simple.

If this same programmer is working as a contractor for a UK company and living in Germany, how do the German authorities know they need to collect tax from this person? It is difficult to regulate when each individual is responsible for paying their taxes correctly.

Monitoring who should be paying taxes to whom, is a complex challenge for authorities. As a result many countries are changing their tax legislation to clamp down on tax avoidance. The IR35 legislation in the UK was brought in to ensure UK employers assign correct employment status to their workforce. This legislation places the legal responsibility for paying tax, on the company rather than the individual. This legislation is being adapted and implemented in other countries as a means to tackle this tax collection challenge.

A quarter of the UK workforce has been identified by a McKinsey report to be able to work just as effectively remotely 3-5 days per week (4). That’s a quarter of the workforce that could be recruited from anywhere. With one year’s experience of working remotely employers are now seeing increases in productivity from their remote workers compared to previous office levels of productivity (4). We are seeing a longer term move towards a more remote and internationalized workplace. This opens up huge potential for geographically widening the available talent pool. It also causes a taxation nightmare. 

The lack of standardised global taxation laws means tax and employment status in today’s world is both complex and difficult to regulate. To combat this, the previous onus on the individual to pay the right taxes to the right people, is being changed. The legal responsibility will be placed in the hands of the company. Companies will become legally responsible for correct taxation not just in their country of residence, but in the respective countries of their workers. Thus companies need to understand the laws and tax systems in multiple countries to comply with them, or risk fines and legal implications. These changes will impact tax payments for employees and contractors. 

Canada, Germany, and Italy are some of the first to start to readjust their tax legislation. In some instances these legislative changes are similar to the new UK IR35 legislation. In other instances the changes are quite different, such as a blanket tax.

The enormity of incorrect tax payments has been brought under the spotlight by high profile cases such as the Uber employment tribunal. GSK have also been highlighted as having thousands of contractors that will need to be considered employees from April, when the company will be legally responsible for paying tax directly to the government due to IR35. 

In the UK, business and financial services are a large share of the economy. The most notable sustainable remote working sectors are finance, scientific, and IT (4). These sectors are showing the largest long term move to a remote and internationalized workplace. As a result, these sectors will also see the biggest impact of complex global tax legislation.

Current approaches to payroll compliance are not kitted out for such a complex change. Neither internal payroll teams nor in-country tax specialists have the legal knowledge or the language capabilities to implement legally compliant payroll systems in an international workplace. They are not geared up to deal with this.

Outside specialist help will be critical for compliance. Experienced HR specialists that know the laws in the relevant countries will become essential. For example at Project Recruit, we have partnered with 32 accountancy firms in order to ensure the acquisition of such complex knowledge requirements. These firms provide global coverage of payroll legislation and systems. This allows our clients to comply with the laws now, and the laws as they change.

    1. The Guardian, 2020
    2. Business Insider, 2020 
    3. Migration Data Portal, 2021
    4. McKinsey, 2020
    5. PWC, 2021—next-steps.html
    6. BBC, 2020
    7. BBC, 2020
    8. Lewis Silkin, 2020

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