10 essentials every company needs to hire international employees

In 2025, 84% of executives struggled to find skilled talent in their local markets. More companies are looking beyond borders to hire the talent they need. But hiring in a new country can be daunting.

Every country has unique employment regulations, tax brackets, and benefits requirements. And they change all the time.

If you're taking your hiring worldwide, you'll need solid prep work. Let’s explore the essentials that every company needs to hire international employees.    

10 requirements for hiring international employees

If you choose to establish a subsidiary, these are 10 common requirements for hiring employees from another country:

1. Corporate structure

Before you can hire employees in a new country, you’ll need to establish an entity or partner with an employer of record (EOR).

Setting up an entity is complex. It often requires extensive paperwork, legal hurdles, and long waiting times before you can start operating in a new country.

Working with an EOR is a faster and easier alternative. An EOR legally employs workers on your behalf, so you can hire globally without setting up a legal entity. Partnering with an EOR gives you access to cutting-edge global employment technology, plus human expert support. It allows you to hire employees abroad in days and avoid the legal and bureaucratic hurdles of entity management. EORs make global employment easy by handling local compliance, payroll, and HR tasks.

Hiring contractors can be another option for businesses looking to hire internationally. Contractors aren't employees, but they provide flexibility and expertise. You can save on onboarding costs while still hiring individuals with specialized skills.  G-P Contractor™ can make hiring and paying contractors easier by offering features for invoice management and misclassification protection.

2. Registration

If you choose to set up your own entity, the next step is registering with the appropriate authorities so you can legally do business in the country. Every country has its own unique requirements. 

For example, in Peru, you must register your company name with the Peruvian Public Registry, then get a Certificate of Registration. In Germany, you need to incorporate with a notary. Then, you have to file registration paperwork with the trade register, the tax office, and any relevant local trade bodies. Spain, requires anti-money laundering and anti-terrorism declarations along with the registration paperwork.

To register a business, you’ll likely need to present official documents, such as:

• Certification of your company name from the public register

• A written description of proposed company activities

• Registered office addresses

• List of stakeholder and director names

• Articles of association

• Bank account information

• Proof of capital payment in the required amount

The list of requirements will vary by location. Check with the relevant authorities in your target country to learn more about your registration obligations.

3. Compliant employment contracts

One of the most common legal requirements for global hiring is drafting local employment contracts. If you set up your own entity, you'll need to research and familiarize yourself with contract structures and requirements in the local country.

Managing this process yourself comes with risks. Your company may be liable for noncompliant contracts. The safest option is to partner with an EOR with local expertise, or to use G-P Gia™, the first-of-its-kind agentic AI solution, to generate contracts.

Contract requirements can vary widely between countries. For example, in Germany, you have to develop a locally compliant employment contract for each employee. The contract should specify the following information:

• Compensation

• Benefits

• Termination requirements

You may also need to draft contracts in the local language and specify salary and benefits information in the local currency. In Egypt, companies must create four copies of the contract — one for the employer, one for the employee, one for the Social Insurance Office, and one for the competent administrative authority (Ministry of Manpower or its directorates). The law also requires that the contract clearly state the agreed wage or salary, including payment method and timing.

4. Termination and severance requirements

Before you can hire globally, you’ll need to research in-country termination and severance requirements so you can make staffing changes if needed.

Many countries require employers to have reasonable grounds for terminating an employee. In some cases, the employer might have the option to pay additional compensation to terminate the employee legally.

Many countries also require extended notice periods before terminating employees. The lengths of these mandatory notice periods often depend on the employee’s position or time at the company.

In France, after an employee’s probationary period, the notice period ranges from 1–3months. Three months is common for managers protected under Collective Bargaining Agreements (CBAs). In Australia, notice periods increase with years of service. Employees who have worked for a company for less than a year are entitled to one week’s notice.

5. Standard pay, bonuses, and benefits

Take some time to get familiar with the standard wages and benefits for the positions you’re filling. 

Knowing the minimum wage in your new country is an excellent place to start. In many countries, 13th-month bonuses are customary, while in others, it’s a statutory obligation. Germany, for example, doesn’t mandate these bonuses. However, the law in the Philippines requires 13th-month bonuses, and many employers choose to give 14th-month bonuses in December.

In many countries, employers must provide paid sick leave, maternity and paternity leave, paid holidays, and paid vacation. In Israel, employees receive 16 to 28 paid vacation days per year (calendar days). They also get varying amounts of paid sick leave, depending on the industry, and maternity and paternity leave.

In some cases, you may need to provide health insurance. Employees in certain countries receive their health insurance from a national program, which your company will likely pay into. Even if a national health service exists, your company may wish to offer supplemental insurance to give employees comprehensive health coverage.

6. Standard working conditions and CBA requirements

Familiarize yourself with standard aspects of business, such as working hours, overtime, and paid leave policies. In the Netherlands, for example, standard working hours are 36-40 hours per week, but many run to 48 hours. Employment law caps working hours at 60 hours per week and 12 hours per shift.

In some countries, certain industries have CBAs that regulate working hours and conditions more stringently than the government. Be sure to check whether your industry has CBA requirements and how they'll affect your workplace policies. Additionally, remote workers often require different management strategies to integrate successfully into your organization.

7. Payroll withholdings and contributions

In many countries, your company will need to contribute a percentage of each employee’s salary to various social security funds, such as:

• Retirement pensions

• Healthcare programs

• Employee compensation funds

• Unemployment funds

• Disability benefits

Contributions vary significantly by country. In Indonesia, payroll contributions to the social security healthcare programs constitute about 5% of earnings, and the employer and employee split the contributions equally. In France, employer contributions to social security can run up to 45% of the employee’s salary.

8. Legal and human resources personnel

Once you’ve taken care of legal documentation, you can begin the recruiting and hiring processes. Global employment support can make all the difference in attracting and managing new employees. 

If you work with an EOR, you won’t have to worry about compliance. The EOR handles most of the HR work for you. With G-P EOR, you can onboard and manage talent in 180+ countries quickly and compliantly. We ensure compliance with local laws and regulations, so you don’t have to.

AI agents such as Gia can work alongside G-P EOR to provide real-time regulatory guidance and create legally compliant documents in 50+ languages. 

You can navigate the nuances and complexities of the law easily with G-P EOR. You’ll have access to legal and HR experts around the clock who can guide you on regulatory requirements and minimize risk.

9. Local recruitment strategy

You’ll also need strategies for recruitment in your new country. Job seekers in certain countries might be used to learning about open positions through their social connections, by searching specific websites, or by going to job fairs or conventions. You’ll want to work closely with your local contacts to determine which advertising and recruitment strategies will work best in your target location.

Both your company and potential hires are seeking the right fit — you need talent and local insight, and they need a company that matches their values and goals. Working closely with EOR experts helps you hire skilled employees and provide a mutually beneficial working relationship.

10. Onboarding

Once you’ve found the right fit for the role, you can begin the onboarding process. Make sure you complete these essential tasks:

• Collect and process the necessary legal information.

• Add employees to your payroll.

• Determine the required withholdings.

• Set up the necessary benefits.

• Introduce employees to your company culture.

• Train employees on their new job responsibilities.

If you’re working with an EOR like G-P™, you won’t have to worry about the administrative burden of onboarding. We’ll streamline the process, so you can focus on training your new hire and integrating them into your company culture.

Key documents required to hire global employees

When hiring international employees, you'll need to prepare several documents to stay compliant:

• Employment contracts: Employee contracts should clearly outline job responsibilities, salary, benefits, working hours, and termination conditions. They should also comply with the labor and employment laws of the employee's country.

• Work permits and visas: For international employees, valid work permits or visas are mandatory. These documents authorize the employee to legally work in the host country and are typically based on the employee's nationality and job role.

• Tax identification numbers: Employees need tax identification numbers for tax withholding and compliance with local tax regulations.

• Social security and insurance registration: Many countries require employees to be registered with the national social security system or private insurance schemes. This documentation ensures benefits access and legal compliance.

• Payroll and banking information: To process salary payments and maintain payroll records, employers need accurate payroll and banking details from employees.

• Employee handbooks and policies: Employee handbooks and policies outline company rules and workplace conduct. Gia can  draft policies on your behalf for different countries and translate them into local languages.

• Specific regional documents: You'll need extra documents from employees, depending on the country. These can include medical examination certificates, offer letters, or civil certificates, such as marriage or birth certificates.

Simplify global hiring

While international hiring requires greater diligence and a longer time frame than hiring nationally, you can streamline the process by:

1. Partnering with an EOR: An EOR can manage local compliance, payroll, and HR, so you can hire in new countries without the time and cost of entity setup.

2. Centralizing global hiring with technology: Use a best-in-class EOR to manage onboarding, documentation, and payroll in one place. An EOR reduces the cost, complexity, and risk of global employment with a seamless onboarding experience and innovative platform features.

3. Creating country-specific compliance checklists: Develop detailed checklists for each country to meet all legal, tax, and documentation requirements.

4. Automating payroll and benefits administration: Implement automated systems to handle payroll, withholdings, and statutory benefits according to local laws.

5. Engaging local experts for regulatory guidance: Consult in-country legal and HR professionals to stay current with changing regulations and avoid compliance issues. You can use Gia’s advanced AI capabilities to access expert-vetted HR guidance instantly. Gia gives you up-to-date information on local laws and regulations so you can navigate the complexities of international compliance.

6. Offering competitive benefits: Research and provide benefits packages that align with local expectations to attract and retain top talent.

7. Prioritizing data security and privacy: Ensure all HR processes and systems comply with international data privacy standards to protect employee information.

You can also improve how you hire international employees by researching your country of interest. Start by looking into:

• Compensation

• Bonuses and statutory benefits

• Standard working conditions and compliance requirements

• Payroll withholdings and contributions

• Termination and severance requirements

Build your international teams with G-P

Setting up payroll, calculating withholdings, and ensuring regulatory compliance can divert your focus from more essential business matters. As a global EOR, G-P takes on these responsibilities so you can concentrate on strategic initiatives and building your team.

Book a demo to learn more.

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