Global Food processing software provider converts freelancers into employees

Introduction

Key problems

  • Relocation
  • Employment
  • Compliance
  • Talent Acquisition

US-based software company with global coverage, specializing in developing food processing solutions, required to employ a UK-resided developer, a freelancer, for its project in Portugal. At that point, another independent contractor already worked for an existing project in this country. The company tended to relocate UK-resided candidates to Portugal and employ there.

Background

  • Employment in foreign countries
  • Project and environment condition

At that moment, the US employer was not familiar enough with local labor legislation in Portugal. The company’s management discovered the clause under which employees entitled to receive 13th and 14th salaries. In terms of project conditions, that notion might become an issue of exceeding the initial budget. Moreover, the UK candidate was supposed to relocate to Portugal, which was in fact, time-consuming.

Evaluation of the Case

Acumen International, as a Global Employer of Record, offered a particular solution for this situation. With our global coverage, we decided not to relocate UK candidates to Portugal but employ him inside the country. Consequently, both candidates were reclassified and reemployed under new, sophisticated terms.

Proposed Solution

  • Employ additional candidate for international project
  • Convert both contractors into employees
  • Optimize budget
  • Save time

Considering that the United Kingdom has flexible taxation for international companies, it appears to be a gateway to European markets. As a result, our client achieved certain budget goals, saving from logistics and employing ongoing candidate in Portugal. Moreover, the company has improved its global presence and sophisticated talent pool, by acquiring both candidates, converting them from independent contractors into employees.

Recommendations

  • Expanding into a new market
  • Lowering business costs
  • Complying with government regulation

In order to improve their market possession and talent supply chain, companies are fond of expansion into foreign countries and operate there. While evaluating the project’s needs, a number of challenges may appear including budget and timeframe exceeding. Logistics, payroll, and legal compliance are the rising concerns on their way to achieving their inclusive goals.
We at Acumen International, offer multinational companies a thorough solution to backbone the above issues. Our Global Employer of Record assists in expansion without incorporation and compliant employment in 190 countries making it possible to set up the project in extremely short terms, as fast as 72 hours.

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