The world of remote hiring has a steep learning curve even for experienced professionals, and if you aren’t careful, you may run into both practical and legal problems while managing your new international remote workforce. Remote consultants can save your company money and time if you handle them properly, but they can also become a nuisance if you aren’t prepared for the intricate legalities.
Here are all of the things you’ll need to consider while hiring remote consultants.
Types of contracts
In order to make sure things run smoothly with your new remote consultant, you need to have a clear idea of which contract type to use. There are a variety of remote work contracts that can work well. Think about which contract type for remote work will best suit your company and the work involved.
Fixed contract: When hiring an independent contractor, a fixed contract is a good option. With a fixed per week or per month rolling contract, you’ll be able to plan exactly how much you’ll spend. This option is the closest to your regular full-time employees. Of course, with this option, you will not be paying for the amount of work submitted, but rather for the amount of time spent overall.
Pay as you go: A pay-as-you-go contract is based on timesheets; therefore, it is a great option if you aren’t sure how long the tasks will take and don’t want to engage your contractor full-time. The contractor will have to submit the number of hours or days worked for approval on a weekly, bi-weekly, or monthly basis. If no more work is required, you won’t be tied to a long-term fixed contract.
Milestone-based contract: With a milestone-based contract, you can set up individual tasks for the freelancer. Once each task is completed, the set fee is paid and another milestone is set up. This is the perfect type of contract for situations with well-defined, unique tasks.
Once you’ve chosen a suitable contract type, create a consultant contract template that you can use for all of your new remote workers to keep things streamlined.
In addition to sorting out your contract types, you’ll also need to consider the challenges presented by differences in time zones. It is recommended to stick with remote workers who are within a two-hour window of your company’s time zone. Working around anything larger can become frustrating and inefficient.
Before the relationship begins with your remote consultants, clearly define and test any and all communication tools. Will you communicate primarily over email, Zoom, or Slack? If you are clear about which communication tools you’ll be using, you’ll be able to ensure that you never miss messages or cross wires. With good communication comes efficient work!
If you’re hiring remote workers from a variety of locations, you’ll need to be careful about following the country’s labor laws. For instance, labor laws in the UAE for remote work can differ from the laws in other locations. Be sure to research all relevant laws before you send out any contracts or payments. Automated tools like RemotePass can help you stay compliant at all times with minimal effort.
Compliance varies from country to country, so all consultant contracts should be localized for each country. Legal fees for this kind of compliance work can vary from $2,000 (7,000 AED) to $5,000 (20,000 AED).
Ensure that the contracts you send out to your remote workers protect your company from any liabilities. For instance, they should ensure that the work abides by any data protection laws for both countries involved. Ensure that your contracts clearly state that the contract is an independent contract, and that your company is therefore not liable to any tax withholding or end of service benefits.
Ensure that the independent contract includes a scan of the contractor’s government-issued identification. Depending on the country you and the consultant are in, there may be specific laws regarding identification. In India, for instance, the independent consultant will need to provide a copy of the PAN card and an identification document such as UIDAI ID/Aadhaar, Electors Photo Identity Card (EPIC), or a driver’s license.
Once you have collected personal information on your new consultants, ensure you have a secure, legal method of storing the information in compliance with your country’s data protection laws.
Accounting & Finance
The other major thing to consider is the matter of payments. Be sure to plan your payment and invoice methods in advance, so your finances don’t become confused or disorganized. Managing payment cycles for multiple contractors located in different countries can be tricky, especially with a variety of payment-cycles and currencies involved. International payroll tools like RemotePass can help you streamline payments, save money on interchange fees, automate invoicing, and integrate fully with your accounting systems.
Payment for remote teams
Will you need to pay consultants in various countries and currencies? What payment methods will you offer? PayPal, wire transfer, and checks are commonly used for contractors. With global payroll tools like RemotePass, you centralize payments in your local currency and offer contractors the flexibility to choose the currency and how they want to receive their money.
Ensure that you request official invoices from each consultant for each payment. This way, you’ll be able to track what is paid and when.
Figure out an organized method for managing any expenses from contractors. Use international payroll software like RemotePass to keep track of the submission and approval process for contractor expenses if applicable.
The Bottom Line
While hiring remote contractors can do wonders for your business, it can initially be a tricky task. With the matter of remote employment contracts (UAE or otherwise), legalities, internal systems, communication, and payment methods, there’s a lot you’ll need to organize in advance. However, with modern software, the entire system can be organized digitally—you’ll quickly be outsourcing to excellent, specialized workers and getting the job done better than ever before. Explore how RemotePass can streamline compliance and payments for your remote global team.