Expanding your business internationally could be the greatest decision you ever make as a business owner. It presents connection opportunities in abundance, and can be a great way to reach a new market that could help your business thrive. However, there are various legal complexities that need to be monitored and adhered to. With so much to focus on, it can be easier for certain aspects to slip through the net, particularly the various international laws. In order to adhere to global compliance, you may want to consider turning to a professional employment organisation.

Here at Payroll Worldwide, we provide human resources (HR) and payroll services to companies in Latin America and those wishing to expand, ensuring that the necessary employment laws and other various legal requirements are met. We can either provide a concierge service to those weaving with your company, supplying them with visas and work permits. To find out more about labour legislation and a wide range of national laws that need to be adhered to, read below.

 

Tax Laws Overseas

Tax law varies from country to country, so it is important to keep informed on the changes that are happening in your country of work. Foreign-owned companies are facing tax changes like never before; developments such as US tax reform can change the environment for international tax, as countries make changes that are affecting domestic tax rules for foreign investors. It is vitally important that you research the territory you are wishing to do business in to avoid any surprises.

For some international businesses, you may find that you have to pay tax in two separate locations, meaning you will have two tax laws to understand and stick to. Some agreements and trade deals may alter your obligations, but you must conduct some research. Although research is important, it might be in your best interest to consider a professional employer organisation (PEO) to help you stay compliant in your country of business. Here at Payroll Worldwide, we can help you stay on top of any changes to regulations, keeping you compliant at all times. To find out more about our global compliance management services, please visit us here.

 

International Labour Law: What You Need to Know

International labour laws cover the rights and obligations of the employees in a business, as well as employers and trade unions. They are developed by four main entities: world trade organisations, the world bank, the international monetary fund and the international labour organisations. Across the global markets, these organisations have been responsible for structural change in the labour markets. They establish the minimum protection for bad work practices, and they need to be followed accurately, no matter your business.

If you choose to operate in another country, but bring in employees from England, you could choose to have the employee contract governed by the labour laws of either country. However, employees could suffer from these rules, as they could be contracted to less favourable laws. As an employer, it is your choice to seek what is best for your employees, as well as help your business thrive. 

However, In Latin America, people cannot work under an English law contract while residing in the country If they are hired by a local company, the contracts have to be in accordance with the country’s law

 

Contractors and Global Compliance

Most commonly, an employee’s contract will have a full contract, with a salary plus potential benefits, which an employer should provide. When expanding overseas, you should clarify whether your staff are employees or independent contractors. When someone is an employee, you should provide them with certainties as part of their contract, otherwise, you may be non-compliant with labour laws. Independent contractors could either be a consultant or self-employed individual.

By highlighting your relationship early in the employment process, you can avoid any repercussions or fines in the future. A PEO can help you with global compliance, such as employment protection, collective agreements and employment contracts. If you are expanding and need help with employment or labour law, please give us a call on 7469 892524. Alternatively, you can fill out our online form here.