How to Hire International Employees Using Deel

How to Hire International Employees Using Deel

Hiring international employees has become an important growth strategy for businesses looking to access global talent, expand into new markets, and build distributed teams. However, hiring across borders involves more than finding the right candidate. Employers must also navigate local employment laws, payroll regulations, taxation, benefits, and employment contracts.

Managing these requirements independently can be expensive and time-consuming, particularly for companies that do not have legal entities in every country where they want to hire.

Deel simplifies international hiring by providing global workforce management solutions, including Employer of Record (EOR), global payroll, contractor management, and employee onboarding.

With Deel, businesses can explore ways to hire employees in different countries without necessarily establishing a local legal entity in every market.

In this comprehensive guide, we explain how to hire international employees using Deel, how its Employer of Record service works, how to onboard global talent, and what businesses should consider before hiring employees abroad.

What Is Deel?

Deel is a global HR and workforce management platform that helps businesses hire, manage, and pay employees and contractors across multiple countries.

The platform provides services designed to simplify international employment, payroll administration, compliance management, and workforce operations.

Some of its major solutions include:

  • Employer of Record (EOR)
  • Global Payroll
  • Contractor Management
  • Contractor Payments
  • Employee Onboarding
  • HR Management
  • Benefits Administration
  • Workforce Compliance

Deel is particularly useful for companies that want to build remote teams or expand internationally without managing every employment process independently.

Why Use Deel to Hire International Employees?

Hiring employees in another country can create several operational and legal challenges.

For example, a US-based company hiring an employee in India may need to understand Indian employment laws, payroll requirements, statutory contributions, employment contracts, and applicable benefits.

Deel helps businesses manage these complexities through its international hiring infrastructure and workforce management services.

1. Hire Without Establishing a Local Entity

One of the main advantages of Deel’s Employer of Record service is that businesses may be able to hire employees in countries where they do not have their own legal entity.

Instead of establishing a subsidiary or branch, a company can use Deel’s applicable local employment arrangement.

This can reduce the time and administrative burden associated with entering a new market.

2. Simplify International Employment Compliance

Employment regulations differ across countries.

Deel’s EOR service supports country-specific employment processes, documentation, and compliance requirements.

This helps businesses manage employment arrangements without having to independently develop expertise in every local jurisdiction.

However, companies should understand that using an EOR does not automatically eliminate every legal or tax responsibility they may have in the employee’s country.

3. Manage International Payroll

Deel supports international payroll and employee payment workflows.

Depending on the service and country, businesses can manage employee compensation, payroll administration, and payment coordination through the platform.

This can simplify payroll operations for distributed teams.

4. Streamline Employee Onboarding

Deel provides digital onboarding workflows that help businesses collect employee information and manage employment documentation.

Employees can complete relevant onboarding steps online, while HR teams can monitor the process.

5. Access Global Talent

Businesses are no longer limited to hiring employees within their headquarters’ geographic location.

Deel can help companies explore employment arrangements in supported countries, making it easier to build distributed teams.

Understanding Deel Employer of Record (EOR)

Before learning the hiring process, it is important to understand what an Employer of Record does.

An Employer of Record (EOR) is an organization that legally employs workers on behalf of another company under an agreed arrangement.

The client company manages the employee’s day-to-day work, while the EOR handles designated employment responsibilities such as local employment contracts, payroll, and statutory employment administration.

Deel’s EOR service helps businesses hire employees in supported countries without necessarily creating their own local legal entities.

How Deel EOR Works

Consider a company headquartered in the United States that wants to hire a marketing manager in India.

The company does not have an Indian subsidiary.

Using an appropriate Deel EOR arrangement, the process may work as follows:

  1. The US company selects a candidate in India.
  2. The company initiates the hiring process through Deel.
  3. Deel arranges the applicable local employment contract.
  4. The employee completes onboarding and documentation.
  5. Deel manages designated payroll and employment administration.
  6. The company pays Deel according to the agreed commercial arrangement.
  7. The employee performs their daily responsibilities for the client company.

This arrangement allows the company to hire internationally without necessarily establishing its own legal entity in India.

Important: EOR availability, employment arrangements, and responsibilities vary by country. Businesses should confirm the specific legal and operational structure with Deel.

Deel EOR vs. Global Payroll vs. Contractor Management

Deel offers different solutions for different types of international workforce arrangements.

Feature Employer of Record Global Payroll Contractor Management
Worker Type Employees Employees Independent contractors
Local Entity Required Generally not required for the client Generally required Depends on the arrangement
Legal Employer Deel or relevant local entity Client’s local entity Contractor remains independent
Payroll Managed under EOR arrangement Managed for client’s employees Contractor payments
Employment Contract Facilitated through EOR Client’s employment arrangement Contractor agreement
Compliance Support Employment-related support Payroll-related support Contractor-related support
Best For Hiring without local entities Payroll for existing international entities Managing independent contractors

Choosing the correct arrangement is important because employees and independent contractors are not legally interchangeable.

Misclassifying an employee as a contractor can create legal, tax, and financial risks.

How to Hire International Employees Using Deel: Step-by-Step Tutorial

Now let’s explore the international hiring process using Deel.

The exact workflow may vary depending on the country, service selected, employment arrangement, and company requirements.

Step 1: Create a Deel Account

Start by visiting the official Deel website.

Website: Deel Official Website

Businesses interested in international hiring can explore Deel’s EOR service and request a consultation or demonstration.

During the initial discussion, Deel may ask about:

  • Company name and location
  • Number of employees
  • Countries where you plan to hire
  • Job roles and responsibilities
  • Proposed employee compensation
  • Employment start dates
  • Benefits requirements
  • Hiring timeline

This information helps determine the appropriate hiring solution and available services.

Step 2: Select Employer of Record

If your company wants to hire employees in a country where it does not have a local legal entity, Deel EOR may be an appropriate option.

For example:

Company Location Employee Location Potential Solution
United States India EOR
United Kingdom Philippines EOR
Canada Germany EOR
Australia Brazil EOR
United States Mexico EOR

These are illustrative examples. Actual availability and employment arrangements must be confirmed for the relevant country.

If your company already has a legal entity in the employee’s country, Deel Global Payroll may be more suitable.

Step 3: Select the Employee’s Country

Once you choose the appropriate hiring solution, select the country where the employee will work.

The country is important because it determines applicable employment requirements.

Different countries have different rules regarding:

  • Minimum employment standards
  • Employment contracts
  • Working hours
  • Paid leave
  • Social security contributions
  • Tax withholding
  • Statutory benefits
  • Termination procedures
  • Notice periods

Deel’s country-specific workflows help businesses navigate these requirements.

However, employers should verify the applicable legal obligations and service coverage before proceeding.

Step 4: Add the Employee’s Information

After selecting the country, provide the necessary details about the employee and the proposed employment arrangement.

Typical information may include:

Information Purpose
Full Name Employee identification
Job Title Defines the employee’s role
Work Location Determines applicable employment rules
Start Date Establishes employment timeline
Salary Defines compensation
Working Hours Determines schedule and relevant requirements
Employment Type Determines the arrangement
Benefits Establishes applicable benefits
Reporting Manager Defines organizational structure
Additional Compensation Includes eligible bonuses or allowances

Accurate information is essential for creating the correct employment documentation.

Step 5: Review the Employment Cost

Before hiring an international employee, review the total employment cost.

The employee’s gross salary is not necessarily the complete cost to the company.

Depending on the country and arrangement, additional costs may include:

  • Employer social security contributions
  • Statutory benefits
  • Insurance
  • Paid leave obligations
  • Bonuses and allowances
  • EOR service fees
  • Other applicable employment costs

Deel may provide an employment cost breakdown based on the country and proposed compensation.

Example of International Employment Costs

Consider a hypothetical employee earning a gross monthly salary of $4,000.

Cost Component Illustrative Monthly Amount
Gross Employee Salary $4,000
Employer Contributions $400
Benefits and Allowances $150
EOR Service Fee $599
Estimated Total Employment Cost $5,149

These figures are purely illustrative and do not represent Deel’s actual pricing or any specific country’s statutory requirements.

Actual costs depend on the employee’s location, compensation structure, applicable contributions, benefits, and Deel’s commercial terms.

Step 6: Generate and Review the Employment Contract

Once the employment details are configured, Deel facilitates the applicable employment contract under the selected EOR arrangement.

The contract should reflect local employment requirements and the agreed terms.

Important details may include:

  • Employee name
  • Job title
  • Compensation
  • Employment start date
  • Working hours
  • Paid leave
  • Benefits
  • Probationary period, where applicable
  • Notice period
  • Termination provisions
  • Confidentiality obligations
  • Other applicable employment conditions

The employee and relevant parties should review the contract before signing.

Important: Employment terms and legal requirements vary by country. Do not assume that a contract template suitable for one country can be used unchanged in another.

Step 7: Send the Employee an Invitation

After the employment arrangement is prepared, the employee may receive an invitation to complete onboarding through Deel.

The employee can access the relevant onboarding information and follow the instructions provided.

Depending on the country and employment arrangement, the onboarding process may involve:

  1. Creating or activating a Deel account
  2. Reviewing employment information
  3. Providing personal details
  4. Submitting identification documents
  5. Completing tax documentation
  6. Providing bank account information
  7. Reviewing and signing the employment contract
  8. Completing other required documentation

HR teams should monitor onboarding progress to ensure the employee completes the necessary steps before the start date.

Step 8: Complete Employee Verification

Employee verification is an important part of international hiring.

Depending on the country and employment arrangement, verification may involve:

  • Identity verification
  • Employment eligibility documentation
  • Address verification
  • Banking information
  • Tax information
  • Background checks, where applicable and permitted
  • Other country-specific requirements

The exact requirements depend on local laws and the selected service.

Employers should not request or process personal information beyond what is necessary and legally permitted.

Step 9: Set Up Payroll and Compensation

Once the employee is onboarded, payroll arrangements need to be configured.

Depending on the EOR service, Deel manages designated payroll responsibilities according to the applicable local employment arrangement.

The company may need to establish:

  • Gross salary
  • Payment frequency
  • Bonuses
  • Commission structure
  • Allowances
  • Benefits
  • Reimbursement policies
  • Performance incentives

Payroll schedules and compensation arrangements should comply with local requirements and the employment agreement.

Step 10: Configure Employee Benefits

Employee benefits are an important part of international employment.

Depending on the country, Deel’s available services, and the employment arrangement, benefits may include:

  • Health insurance
  • Statutory social security
  • Paid annual leave
  • Sick leave
  • Parental leave
  • Retirement-related contributions
  • Other local benefits

Benefits differ across countries.

For example, statutory benefits required in India may differ significantly from those applicable in the United States or the United Kingdom.

Before hiring, review the employee’s benefits package and confirm which benefits are included in the arrangement and which may require additional payment.

Step 11: Confirm the Employee’s Start Date

After the contract is signed and onboarding requirements are completed, confirm the employee’s start date.

Before the employee begins working, ensure that:

  • Employment documentation is complete
  • Payroll arrangements are configured
  • Required verification is completed
  • Benefits are confirmed
  • The employee understands their compensation
  • The reporting manager is assigned
  • The employee has access to required work tools

A structured onboarding process helps create a better experience for international employees.

Step 12: Manage the Employee After Hiring

Deel’s workforce management capabilities can help businesses manage employee information and designated HR activities after onboarding.

Depending on the service and available features, companies may manage:

  • Employee information
  • Compensation changes
  • Payroll administration
  • Leave information
  • Benefits
  • Employment documentation
  • HR workflows
  • Employee lifecycle changes

For employment changes such as promotions, salary revisions, or termination, companies should follow the applicable local requirements and coordinate with Deel as necessary.

How Much Does It Cost to Hire International Employees Through Deel?

Deel’s international hiring costs depend on the service selected, employee location, compensation, and additional requirements.

EOR pricing generally differs from Global Payroll pricing because the employment arrangement and responsibilities are different.

Factors That Affect Deel Hiring Costs

Factor Explanation
Employee Location Different countries have different employment costs
Gross Salary Determines the employee’s compensation
Employer Contributions Includes applicable statutory contributions
Benefits Depends on the employee’s benefits package
EOR Service Fee Depends on Deel’s commercial terms
Additional Services May include insurance or other services
Employment Complexity Special requirements may affect costs

Deel may provide a customized quote based on the company’s hiring requirements.

For current pricing, visit Deel Pricing or contact Deel directly.

Deel EOR vs. Setting Up Your Own Legal Entity

Companies expanding internationally may eventually consider establishing their own legal entities.

Both options have advantages and limitations.

Feature Deel EOR Own Local Entity
Initial Setup Generally faster than establishing an entity Can involve significant setup
Legal Entity EOR provides applicable employment structure Company establishes its own entity
Employment Administration Managed under EOR arrangement Managed by company or providers
Payroll Coordinated through EOR Company manages local payroll
Compliance Responsibilities Shared according to agreement and applicable law Company assumes direct responsibilities
Operational Control Subject to EOR arrangement Greater direct control over local operations
Costs EOR service fees and employment costs Setup, administration, payroll, and compliance costs
Best For Entering markets or hiring smaller teams Established operations with long-term presence

The best option depends on the company’s long-term international strategy.

EOR can provide a practical way to hire without establishing a local entity, but a company expanding substantially in a particular country may eventually evaluate direct incorporation.

Common Mistakes to Avoid When Hiring International Employees

1. Misclassifying Employees as Contractors

Businesses sometimes classify international workers as independent contractors to simplify employment administration.

However, classification depends on the actual working relationship and applicable law.

Misclassification can result in tax liabilities, penalties, and employment disputes.

Use an appropriate employment arrangement based on the worker’s responsibilities and legal status.

2. Ignoring Local Employment Laws

Employment laws vary significantly across countries.

A company should not assume that its headquarters’ employment policies automatically apply to international workers.

3. Focusing Only on Gross Salary

The employee’s gross salary may not represent the complete employment cost.

Include statutory contributions, benefits, EOR fees, and other relevant expenses when planning the budget.

4. Using Incorrect Employment Contracts

Employment contracts should reflect the requirements of the employee’s country.

Do not reuse a domestic employment agreement without reviewing its suitability for international employment.

5. Overlooking Benefits

Benefits may be legally required or important for attracting and retaining employees.

Review the applicable statutory and additional benefits before finalizing the employment arrangement.

6. Starting Employment Before Documentation Is Complete

Ensure that the necessary contract, verification, and onboarding requirements are completed before the employee begins work.

Who Should Use Deel for International Hiring?

Deel may be particularly useful for businesses that want to recruit employees across borders without building a complete local employment infrastructure in every country.

Startups

Startups can explore international hiring without necessarily establishing local entities immediately.

Remote-First Companies

Companies with distributed teams may use Deel to manage employment arrangements across multiple locations.

Growing Businesses

Organizations expanding into new markets can use EOR to explore international hiring while evaluating long-term expansion plans.

Small and Medium-Sized Businesses

Businesses without dedicated international HR teams may benefit from structured employment and payroll support.

Enterprise Organizations

Larger companies may use Deel to coordinate international workforce management and support their global hiring strategies.

Frequently Asked Questions

1. Can I hire international employees using Deel without a local entity?

Yes, Deel’s Employer of Record service may allow companies to hire employees in supported countries without establishing their own local legal entity. Availability and employment arrangements vary by country.

2. What is the difference between Deel EOR and Global Payroll?

EOR allows companies to hire employees through Deel’s applicable local employment structure. Global Payroll generally supports companies that already employ workers through their own local entities.

3. How long does it take to hire an international employee through Deel?

The timeline depends on the country, employment documentation, employee verification, onboarding requirements, and the selected service. Confirm the expected timeline with Deel before establishing a start date.

4. Does Deel handle international employment contracts?

Under its EOR service, Deel facilitates applicable local employment contracts. The exact contract arrangement depends on the employee’s country and service agreement.

5. Can Deel pay employees in their local currency?

Deel supports international employment and payment workflows, including local currency payments where available. Payment capabilities depend on the country and service arrangement.

6. Does Deel handle employee taxes?

Deel manages designated payroll and tax-related responsibilities according to the selected service and country. Companies should confirm which filings, payments, and obligations are included in their agreement.

7. Can I hire employees in India through Deel?

Deel offers services for hiring and managing workers in India, subject to the relevant product, employment arrangement, and applicable requirements. Businesses should verify the exact service availability and obligations before hiring.

8. Is Deel suitable for hiring independent contractors?

Yes. Deel offers Contractor Management services designed to help businesses manage international contractors. However, businesses should ensure that the worker is correctly classified as an independent contractor under applicable law.

9. Can I change an employee’s salary after hiring?

Compensation changes may be managed through the applicable Deel workflow. However, changes must comply with the employment contract and relevant local requirements.

10. How much does Deel EOR cost?

Pricing depends on the employee’s country, compensation, selected service, benefits, and other requirements. Businesses should request a customized quote for accurate pricing.

Conclusion

Hiring international employees can help businesses access global talent, improve workforce flexibility, and expand into new markets. However, managing international employment independently can involve complex legal, payroll, tax, and administrative responsibilities.

Deel simplifies many aspects of international hiring through its Employer of Record, Global Payroll, and workforce management solutions.

For businesses without local entities, Deel EOR may provide a convenient way to hire employees in supported countries while managing designated employment responsibilities through a centralized platform.

Before choosing Deel, evaluate the countries where you plan to hire, your workforce structure, employment costs, benefits, compliance requirements, and long-term expansion strategy.

Ready to explore international hiring? Visit Deel to learn more about its Employer of Record services and request a consultation based on your company’s global hiring needs.

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