Expanding into a new country can feel less like a business milestone and more like standing at the edge of a cliff. The view is thrilling, with new markets, fresh opportunities, and the promise of growth on the horizon.
But for HR leaders, it also comes with a lot of uncertainty. What employment law will catch you off guard? Which payroll requirement will trip you up?
The truth is, global expansion doesn’t have to be overwhelming. With the right preparation, it becomes a structured process rather than a leap into the unknown.
This guide breaks down the eight areas HR leaders must get right before taking a team across borders. These are the foundations that turn this ambition into a sustainable reality.
1. Learn the Local Labour Laws
Labour law isn’t a background detail; it’s the ground you stand on. When you hire abroad, you’re stepping into a legal framework that was built to protect employees, and every country enforces it differently. “Close enough” doesn’t count. Mostly compliant isn’t compliant, and regulators, employees, and courts will hold you accountable.
Key areas to focus on:
- Employment contracts: In most markets, these are legally binding documents with prescribed clauses. They can cover job title, working hours, annual leave, salary, benefits, and notice periods. Even where contracts aren’t mandated, relying on informal agreements exposes you to disputes.
- Termination rules: Ending an employment relationship is rarely a simple managerial decision. Many countries require written justification, advance notice, or severance pay. Others demand consultation with unions or works councils. If you fail to follow the process, dismissals can be ruled unfair and overturned.
- Working hours: Maximum weekly limits, required rest periods, and overtime rules are designed to safeguard employee well-being. Exceeding them can trigger fines or claims.
- Protected categories: Anti-discrimination protections usually include race, gender, disability, and religion. Some countries extend them further to marital status, political beliefs, or family responsibilities. Breaching them risks lawsuits, reputational harm, and government penalties.
Example in action: In the Netherlands, employers cannot simply dismiss staff at will. Terminations typically require approval from a government agency or the courts, and failing to follow this process can result in reinstatement orders or significant compensation costs.
2. Get Payroll and Pay Practices Right
For most employees, nothing is more important than getting paid correctly and on time. For HR leaders, payroll is where compliance failures most often turn into sleepless nights. Miss a deadline, underpay a contribution, or miscalculate tax, and you’ll face both financial penalties and a loss of employee trust that’s hard to rebuild.
Key areas to focus on:
- Employer contributions: Salary is only part of the cost of employment. You’ll also need to cover contributions to social security, pensions, health insurance, and unemployment schemes. In some markets, these obligations can increase employment costs dramatically.
- Payroll frequency: Pay cycles vary, and expectations are cultural as much as legal. Monthly pay is standard in some countries, bi-weekly in others. In many regions, additional salary payments like a 13th month or holiday bonus are mandated by law or ingrained in practice. Missing them signals ignorance at best, negligence at worst.
- Reporting obligations: Payroll is linked directly to tax filings and government reporting. Contributions must be calculated accurately and remitted on time. Late or incorrect filings can snowball into fines, audits, or restrictions on future hiring.
- Currency and transfers: Paying across borders introduces complexity. Exchange rate fluctuations, bank restrictions, and local currency laws can delay or distort payments. Plan carefully to avoid cash flow problems for your team.
Example in action: In Brazil, every employee is entitled to a 13th-month salary. This legally mandated extra month’s pay can be paid as a lump sum at the end of December or divided into two equal payments between February and November. Miss it, and you’re noncompliant.
3. Pick the Right Market Entry Model
Before you sign your first contract abroad, you need to decide how you’ll operate legally in that country. This isn’t an administrative formality. It’s a strategic choice that determines how quickly you can hire, what risks you take on, and how much control you’ll have. Make the wrong call, and you could lock yourself into months of unnecessary cost and complexity.
Key areas to focus on:
- Subsidiary setup: Establishing a legal entity gives you full control, but comes with high costs, heavy administration, and often months of delay before you can even hire your first employee.
- Employer of Record (EOR): An Employer of Record hires employees on your behalf, handling compliance, payroll, benefits, contracts, and even terminations. It’s the fastest way to enter a market legally, making it ideal for testing opportunities without long-term commitments.
- Professional Employer Organisations (PEOs): Similar to an EOR but with a co-employment model. With a PEO, you share responsibility for employees, which can work well for ongoing HR support but may be less flexible.
Example in action: To expand into Germany quickly, you could start by hiring through an EOR to get a compliant team in place quickly. Once you prove demand in the market, you could then establish a GmbH subsidiary, transferring employees into the new entity with confidence.
4. Adapt Your Recruitment Playbook
Hiring abroad isn’t just posting the same job ad in a new location. Recruitment is cultural. The channels candidates use, the information they expect, and even the way they interpret an interview vary widely from country to country. Assume your home playbook will work everywhere, and you risk missing the talent you’re trying to attract.
Key areas to focus on:
- Recruitment channels: Job boards and professional platforms differ across regions. Some markets rely heavily on agencies, others on university partnerships or informal networks. Knowing where talent actually looks is the first step.
- Candidate expectations: What motivates someone to join your company won’t be the same everywhere. In some countries, stability and benefits are prized above all. In others, career growth and flexibility are stronger draws. Misunderstanding these drivers makes it harder to compete.
- Legal restrictions: Reference checks, background screening, and data collection all have rules. What feels like due diligence at home may be illegal elsewhere.
Example in action: In the United Kingdom, it’s illegal for employers to ask about a candidate’s marital status, plans for children, or age. In some parts of the world, these questions may still be considered routine.
5. Onboarding and Employee Experience
The moment someone joins your company abroad, their first impression sets the tone. A poor onboarding process creates confusion, slows productivity, and undermines trust. In a global context, onboarding isn’t just about handing over a laptop and login details. It’s about making sure employees feel supported, compliant, and connected from day one.
Key areas to focus on:
- Compliance from the get-go: In many countries, onboarding includes mandatory steps like registering employees with local authorities, enrolling them in social security, or providing statutory policy documents. Skip these, and you’re non-compliant before the employee has even started work.
- Probation and training: Probation periods differ by country in both length and scope. Some jurisdictions also require employers to deliver training on topics like workplace safety or anti-harassment within the first weeks.
- Cultural integration: Remote or international hires can easily feel disconnected. Onboarding should include cultural orientation and introductions to help new employees understand company values and local team norms.
- Tools and access: Technical setup (payroll systems, HRIS, benefits enrolment, and collaboration platforms) should be seamless. Gaps in access make new hires feel like an afterthought.
- Consistency vs. localisation: Striking the right balance matters. Some onboarding elements should feel the same company-wide, while others must adapt to local expectations and legal frameworks.
Example in action: In Australia, employers are legally required to provide every new hire with a “Fair Work Information Statement” on or before their first day.
6. Don’t Forget Data Privacy
Employee data is some of the most sensitive information you’ll ever handle. Once you expand internationally, the rules multiply. Each country has its own framework for how personal data can be collected, stored, transferred, and eventually deleted. A casual approach won’t cut it. Regulators and employees expect their data to be treated with care.
Key areas to focus on:
- Clear consent: In many jurisdictions, employees must be told exactly what data is being collected, why, and how it will be used. Vague catch-all statements won’t hold up legally.
- Retention and deletion: You can’t keep records forever. Some countries impose strict time limits on how long payroll, tax, or disciplinary data can be held. Past those deadlines, data must be securely deleted.
- Cross-border transfers: Moving data between regions is one of the trickiest areas. Employers often need safeguards like standard contractual clauses, approved frameworks, or even local hosting to remain compliant.
- Vendor compliance: HR systems and payroll providers are data processors. If they’re not compliant, neither are you. Due diligence on vendors is part of your responsibility.
- Breach management: Many regulators expect immediate action when things go wrong. This means documented incident response plans, clear reporting lines, and timely communication with affected employees.
Example in action: Under the EU’s GDPR, employers must report a data breach to authorities within 72 hours. Fines under GDPR can be up to €20 million or 4% of the total worldwide annual turnover of the preceding financial year, whichever is higher.
7. Don’t Underestimate Cultural Norms
When you expand internationally, you bring your company’s culture with you. That culture is what unites teams across borders, but it doesn’t exist in a vacuum. Every country has its own workplace traditions, communication styles, and expectations. Success comes from holding onto what makes your company unique while recognising and adapting to the cultural context you’re operating in.
Key areas to focus on:
- Protect your core culture: Define the values and behaviours that make your company distinctive, and make sure they’re reinforced consistently across all locations.
- Adapt where it matters: Not every practice translates. Feedback styles, meeting etiquette, and holiday observances may need to flex. Adapting here shows respect without diluting your identity.
- Communication styles: Directness works well in some countries, but a more nuanced approach is expected in others. Adjusting style ensures your message lands.
- Work-life balance: Some countries value a strict separation between work and personal life, while others expect higher availability. Being aware prevents friction and burnout.
- Recognition and feedback: Decide what parts of your approach to recognition are non-negotiable, and where localisation adds value.
Example in action: In France, employees have a legal “right to disconnect” outside of working hours. A company with a culture of late-night emails needs to adapt expectations. This doesn't mean abandoning responsiveness altogether, but setting boundaries that respect local law and norms.
8. Getting Benefits and Perks Right
Salary might get people’s attention, but it’s benefits and perks that often seal the deal (and keep employees loyal). When you expand into a new country, what you consider “standard” may be seen as insufficient, or even non-compliant. Benefits aren’t just about generosity. They’re about meeting legal obligations and cultural expectations. Miss the mark, and you’ll struggle to compete for talent.
Key areas to focus on:
- Mandatory benefits: In many countries, employers must contribute to healthcare, pensions, and unemployment insurance. These are non-negotiable mandatory benefits, and failing to provide them means you’re breaking the law.
- Paid leave: Entitlements differ dramatically. Some countries mandate generous parental and annual leave, while others have minimal requirements. Your global leave policy needs to account for both.
- Common perks: In some markets, allowances for transport, meals, or even home internet are expected. These aren’t always required by law, but skipping them makes you less competitive.
- Bonus structures: In certain regions, annual or semi-annual bonuses are a normal part of compensation. Whether mandated or expected, they’re something candidates factor into their decision-making.
- Local benchmarks: Conduct research before you enter a market. Relying on assumptions from your home country will leave you behind competitors who know what’s standard locally.
Example in action: In Portugal, employees often expect a meal allowance, traditionally provided as lunch vouchers or prepaid cards. It isn’t a legal requirement, but it’s such a common practice that not offering it makes you far less attractive as an employer.
9. Know Where to Get Help When You Need It
No HR leader should be expected to master the legal, cultural, and operational nuances of every country. Expansion is too complex for guesswork, with many HR challenges to overcome, and the cost of mistakes is too high. The smartest leaders know when to call in expertise and where to find it.
Key areas to focus on:
- HR consultants: Independent experts can guide you through specific challenges. Our Boundless HR Support service gives you access to in-country experts across dozens of markets, helping you find your way through payroll, employment law, benefits, and cultural expectations with confidence.
- Employer of Record (EOR): An EOR can take on the legal role of employer, handling compliance, payroll, and contracts while you test a market or build scale.
- Employment lawyers and tax advisors: For complex or high-risk issues, legal specialists ensure you avoid costly missteps.
- Recruitment partners: Local agencies and networks connect you with talent pools you might not reach alone.
Your Partner in Global HR Success
Expanding into a new country is never simple. Labour laws differ, payroll gets messy, cultural norms clash, and benefits expectations shift under your feet. No single HR leader can carry all of that alone, nor should they have to. The companies that succeed are the ones that know when to lean on expertise.
That might mean bringing in consultants for specialist advice, working with an Employer of Record to get compliant quickly, or engaging lawyers and tax advisors to navigate complex rules. It also means having a reliable partner in your corner.
At Boundless, our HR support service connects you with in-country experts across dozens of markets. Whether you’re making your first international hire or scaling across multiple countries, we give you the peace of mind that comes from knowing nothing has been left to chance.
