I think it’s mainly taxation and the legal issues.
Tax should not be an issue if you are paying someone as an independent contractor. Their tax arrangements are on them.
If you have an employment arrangement however, then you begin to hold responsibility for ensuring that local taxes are paid. You need local payroll, relationships with tax authorities etc.
Legally, again you are mitigated somewhat if you use a B2B contractor relationship, but HR, Data Protection and liability rules are going to be complex and risky for the hiring entity. Imagine if you misunderstand vacation or pension rules in Timbuktu and find yourself in a lawsuit with an aggrieved employee.
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I think it’s mainly taxation and the legal issues.
Tax should not be an issue if you are paying someone as an independent contractor. Their tax arrangements are on them.
If you have an employment arrangement however, then you begin to hold responsibility for ensuring that local taxes are paid. You need local payroll, relationships with tax authorities etc.
Legally, again you are mitigated somewhat if you use a B2B contractor relationship, but HR, Data Protection and liability rules are going to be complex and risky for the hiring entity. Imagine if you misunderstand vacation or pension rules in Timbuktu and find yourself in a lawsuit with an aggrieved employee.