Sometimes, the best person for the job is someone who lives outside of your company’s home country. However, trying to hire an employee who lives in another country can lead to complications. For example, the employee payroll and HR management in Canada is very different than in the United States, due to different laws and regulations. There are over 190 regulatory legislative requirements in Canada, which can make it very challenging for U.S. based companies to ensure they are in proper compliance with these requirements when paying their foreign employee. If you’re looking to expand your company by hiring out of country, here are a few important things to look into before setting up your financial management services.
Holidays and Time Off
There are many nationally recognized holidays where employees are expected to be able to get off of work in order to observe the traditions. There are similar holiday rules for other countries; however, that does not mean they are all the same. Different countries have different holidays they observe, meaning your foreign employees will need to take off those days, even if your country doesn’t observe them. When setting up your business management services, make sure you also fully understand the policy for things such as time off, which can be very different from the U.S. laws.
In many countries, unions carry a heavy weight when it comes to industry. Employee benefits and the conditions of work are strongly connected to unions, which negotiate on the behalf of their employees. Many countries have work councils that must be contacted before any changes can be made to an employee’s contract or other work policies. Before hiring an employee, make sure you understand the unions they are a part of, and how they can affect your company.
Many U.S. companies like to make their employees sign a non-competing contract, which protects them from the leaking of trade secrets that could allow a former employee to become a competitor. However, many foreign countries have regulations against these types of contracts. A company can get in big trouble if they try to sign one of these contracts with a foreign employee.
If you are looking to hire an employee who does not live in the same country as your company’s headquarters, it may be beneficial to look for a business management services provider that has experience in the country where your potential employee resides.