Difficulty level: moderate – some experience of employing overseas will be beneficial.

Preparation time: up to 6 months.

Ingredients

  • A suitable legal entity in your target country.
  • A contract of employment, preferably dual language (any employment lawyer can provide this).
  • An HR Manager (must be familiar with current HR laws of the specific country).
  • A payroll system and administrator.
  • A local bank account.
  • Policy and procedures for General Data Protection Regulations compliance.
  • A pension scheme (must meet the regulations of the target country).
  • Mandatory benefits schemes (tip: embellish with your favourite supplementary benefits!).
  • Expense management system.

Method

Step 1 – Investigate what type of entity is required in order to employ in your target country. Open that entity.

Step 2 – Get a clear understanding of the employment regulations and statutory cost of employment in your target country. This can make your European Employment Cake quite rich! Repeat step one if necessary.

Step 3 – Open a bank account in your target country so you can pay staff and local taxes. Be prepared to visit the country in person for this step. Tip: allow enough time for step 3, this can take many months.

Step 4 – Appoint your local advisors; you will need a lawyer, an accountant and an HR manager. Did you buy the right ingredients?? You may also need to procure a pensions adviser, a payroll company and a benefits provider.

Step 5 – Make your offer of employment! If the talent you have identified has not been able to wait around, your European Employment Cake may be unusable.

Step 6 – Onboard your new employee! Negotiate the employment contract (use a good quality translator to change any clauses as necessary), capture employee details, set the employee up on payroll, benefits and pension schemes and manage in accordance with local HR laws.


If you don’t have time to make your own European Employment Cake or are missing some key ingredients, excellent alternatives can be purchased off the shelf.

Share this article, choose your platform!

Published On: 01/07/19Last Updated: 14/09/22

About the Author: Sam Barnes

Sam is our Global Business Development Manager for Employer of Record services. For the last 10 years, he has assisted companies in the successful execution of their international expansion plans. Sam tells us “There’s something inherently exciting about growing a business into overseas jurisdictions. Each country does things slightly differently and it’s great to be able to share learnings on statutory requirements and cultural nuances”. Email: sam.barnes@topsourceworldwide.com

Subscribe to our newsletter don’t miss out

Subscribe to receive our latest posts and events straight to your inbox.

We care about your privacy. By submitting this form, you’ll receive the requested information as well as business insights from TopSource Worldwide. You can unsubscribe at any time. For details, view our Privacy Policy.

Our top blog categories

Global employment cost calculator

Estimate the cost of your new hire with our new calculator.

Calculate costs

Recent posts

What makes effective HR management?

By |21/09/22|

Your workforce is the most essential component of your business. Therefore, you must have effective HR management to achieve an efficient, positive, and productive ...

Related posts

  • Published On: 30/09/222 min readBy

    When you are thinking about your maternity leave, inevitably you will begin to consider the way in which you ...

    Read the full blog
  • Published On: 21/09/222 min readBy

    Your workforce is the most essential component of your business. Therefore, you must have effective HR management to achieve ...

    Read the full blog
  • Published On: 31/08/222 min readBy

    Every business must be able to operate in an efficient way that maximises productivity and minimises cost and waste. ...

    Read the full blog
  • Published On: 30/09/222 min readBy

    When you are thinking about your maternity leave, inevitably you will begin to consider the way in which you ...

    Read the full blog
  • Published On: 21/09/222 min readBy

    Your workforce is the most essential component of your business. Therefore, you must have effective HR management to achieve ...

    Read the full blog
  • Published On: 31/08/222 min readBy

    Every business must be able to operate in an efficient way that maximises productivity and minimises cost and waste. ...

    Read the full blog
  • Published On: 30/08/222 min readBy

    When you have an excellent workforce who are actively engaged in the progression of your company, then great things ...

    Read the full blog

Start your global expansion journey today.

Expand faster and stay compliant in over 150 countries without a legal entity

  • Expand globally

  • Deploy quickly (in days not weeks)

  • A single global portal for all your hiring needs

  • No legal entity required

  • Experienced expert team

Contact us today & talk to an international payroll or EOR consultant

We care about your privacy. By submitting this form, you’ll receive the requested information as well as business insights from TopSource Worldwide. You can unsubscribe at any time. For details, view our Privacy Policy.