{"id":1893,"date":"2024-10-23T16:31:37","date_gmt":"2024-10-23T20:31:37","guid":{"rendered":"https:\/\/hspgroupstg.wpenginepowered.com\/?p=1893"},"modified":"2024-10-24T10:52:42","modified_gmt":"2024-10-24T14:52:42","slug":"what-is-global-mobility-and-how-an-eor-can-help","status":"publish","type":"post","link":"https:\/\/hsp.com\/what-is-global-mobility-and-how-an-eor-can-help\/","title":{"rendered":"What is Global Mobility and How an EoR Can Help"},"content":{"rendered":"\t\t
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What is Global Mobility? <\/strong><\/h2>\n

Global mobility refers to the movement of employees across international borders to foster growth in global markets. Typically, it involves hiring, relocating, and managing staff while ensuring compliance with all legal and tax requirements across all jurisdictions. <\/span><\/p>\n

Effective global mobility requires a holistic strategy aligned with your company’s growth goals, efficient and streamlined operations for managing a global workforce, and compliance regardless of location. Successful global mobility management frees your company to focus on its primary business objectives by ensuring that all aspects of your international workforce management and mobility needs are met seamlessly and accurately. Managed effectively, global mobility is a critical part of how your company can expand into international markets.<\/span><\/p>\n

Which types of legal compliance do I need to follow regarding global mobility?<\/strong><\/h2>\n

Because the laws and requirements of different countries and jurisdictions vary (and are constantly changing), global mobility is not typically an easy process for most companies. Here are the three most common pain points that you may encounter as you grow your company overseas:<\/span><\/p>\n

Immigration compliance for employees:<\/b> Navigating visa and work permit regulations across multiple countries is very complex. Not only does it differ from country to country, but those requirements will inevitably change over time. Non-compliance risks are severe\u2014ranging from legal penalties, delays, and even denied entry for employees. These things can have wide-ranging negative impacts on your reputation, your operations, and employee satisfaction.<\/span><\/p>\n

Tax and payroll compliance: Ensuring accurate tax calculations and payroll processing across different countries adds another layer of complexity. Similar to immigration requirements, the rules vary depending on location, change over time, and carry fines and other penalties if they are not followed. It is also important to consider whether sending employees overseas to work on behalf of your company could trigger a corporate tax nexus for your organization, which is affected by things including: how long the employees have been or will be in place, the nature of the work being performed, number of employees, economic value generated, and the specific jurisdiction\u2019s definition of permanent establishment. <\/span><\/p>\n

Employment compliance: Depending on the exact arrangement of the international assignment, you would need to follow both the statutory minimum employment standards of the country to which the employee is assigned as well as that employee\u2019s contractual agreement in the home country. This includes considerations around how long the international assignment is expected to be (short-term versus long-term) as well as benefits, payroll setup, and tax obligations (home country versus host country).<\/span><\/p>\n

What is an EoR?<\/strong><\/h2>\n

An Employer of Record (EoR) is a service provider that handles most aspects of HR tasks (including hiring and payroll) for companies looking to expand their operations abroad. Essentially, an EoR becomes the legal employer of record for a company\u2019s workforce in another country. This allows the company to operate in that country without having to establish a legal entity (a taxable presence in a country). <\/span><\/p>\n

Many companies choose this option as a fast and easy way to hire workers overseas quickly without the administrative burden. One key distinction is that while the EoR provider handles the administrative tasks related to hiring and managing employees, the daily supervision remains yours. An EoR\u2019s provider\u2019s primary responsibilities are:<\/span><\/p>\n