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Europe (EU) PEO

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Europe is a large continent bordered by the Urals, the Caspian Sea, the Caucasus Mountains, and the Black Sea. Iceland, though outside this boundary, is still considered a part of Europe. As of 2016, there were 741.4 million residents in Europe, making it one of the most popular areas for businesses to expand.

Companies can expand into this region of the world without having to set up a subsidiary or local company presence. As your European PEO we become your employer of record in that country and provide the infrastructure to manage international staff via our Global Expansion Platform™.


Expanding into Europe

There are many advantages for organizations who want to expand into Europe. In addition to the large and prosperous population, you will find many highly skilled workers in Europe. Some of the highest-rated colleges and universities, including the University of Oxford, are in Europe.

However, expansion into this part of the world can also be complex. The European Union is a political and economic grouping of 28 signing members. In addition to members of the EU, there are non-members such as Albania and North Macedonia. Some nations in Europe are not part of the EU but have an agreement with the grouping. In 2016, the United Kingdom voted to leave the EU, though the exact details of how this could impact labor issues remained unresolved in 2019.

Opening offices or subsidiaries in Europe is complicated and sometimes difficult. Germany requires 24,000 Euros of capital to open a branch and companies often have to wait months to start operating. Trying to comply with local laws and requirements is also a challenge.

There is a simpler way if you want access to the European market and hire European workers. With our platform, you can start hiring in a new country and enter an untapped market in a matter of days. Globalization Partners manages the administrative burden and through a service agreement they work and report to you just like your current employees.

Europe Employment Law and Compliance

If you want to expand into Europe, you need to comply with local employment laws, which vary widely by country. In Poland, for example, labor laws cap overtime at 150 hours per year and overtime is paid according to an allowance schedule. Employees are also guaranteed up to 26 days of vacation.

Hiring and Work Permits in Europe

The UK requires work contracts to outline the compensation in British pounds. These contracts also must include an outline of disciplinary measures, grievance procedures, employee duties, benefits, and additional details about termination. A key benefit outlined in these contracts is the NIC (National Insurance Contribution) contribution to health care. Employers will typically contribute about 13.8% towards NIC, in addition to compensation.

Compensation and Payroll in Europe

To expand into Europe and hire European workers, you need to meet payroll requirements as well as minimum wage rules. As of January 2019, minimum wages ranged from €286 in Bulgaria to €2071 in Luxembourg.

Europe and GDPR

In Europe, GDPR (EU General Data Protection Regulation) started on May 25, 2018, as the main Europe data privacy law. The regulations require businesses to have data rights management systems and follow a set of guidelines to keep customer data safe, among other things. Every company seeking to do business in Europe needs to ensure GDPR compliance.

How Global PEOs Help Businesses Expand into Europe

With a Europe global PEO such as Globalization Partners, you get to hire any skilled worker you like without having to worry about opening a branch overseas. Your ability to hire top talent expands, and Globalization Partners handles payroll and compliance with all relevant local laws, so you don’t have to spend months researching. With Globalization Partners, you can hire European workers fast and focus on growing your business while we handle the details of employment law and payroll.

Globalization Partners allows you to hire local European employees without having to set up an entity in Europe. We handle compliance with European employment law and take care of payroll. When employment or data laws are updated in Europe, we automatically make sure you stay compliant.

Taking care of compliance and payroll issues for employees outside your country is a full-time job. You need to stay up-to-date on regulations, best practices, and a whole new way of doing business. You may also need to deal with different languages.

Globalization Partners eliminates all those concerns. Our local experts know exactly what to do to ensure you are fully compliant while still enjoying the skills and services of workers in Europe.

Talk to a European PEO Expert

If you’d like to expand into Europe easily and quickly, speak with a global expansion expert today. Globalization Partners will ensure you are compliant, disperse payroll accurately, and adhere to local tax law.

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