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Employ Candidates Compliantly in Faroe Islands

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  1. Overview: Faroe Islands
  2. Work permit for hiring expats via PEO
  3. Global PEO and payroll
  4. Expand without a company set up
  5. Contractor vs. employee: which is better?
  6. Global Payroll Calculator
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Global Employer of Record in the Faroe Islands

Embracing Global Talent: Leveraging EOR for Effective International Hiring

In today’s interconnected world, the prospect of building a global team offers immense opportunities, yet many business leaders hesitate at the threshold of international hiring. The complexities of legal and tax compliance, the nuances of local employment laws, and the challenges of navigating foreign labour and tax law compliance requirements often seem daunting. Unfortunately, this hesitation leads to missed opportunities in workforce diversification, new revenue streams, and enhanced global market presence.

However, the landscape of global hiring is transforming with the adoption of Global Employer of Record (EOR) solutions. The right Global EOR partner can be a game-changer, empowering businesses to reap the benefits of global talent without the traditional hurdles. By partnering with a Global EOR, companies can smoothly transition to:

  • Compliant and Risk-Free Global Hiring: Safely recruit international employees without the fear of non-compliance or misclassification.
  • Cost-Effective Recruitment Efficiency: Streamline the hiring process, significantly reducing associated costs and time.
  • Enhanced International Employee Experience: Provide a supportive and compliant work environment for employees across the globe.
  • Realising Global Expansion Goals: Achieve international growth objectives with a diverse, global team.

    What Is a Global Employer of Record (EOR)

    A Global Employer of Record (EOR) is an organisation that facilitates the hiring and management of employees in countries where a company does not have an established presence. This service is particularly advantageous for businesses looking to expand their operations internationally without establishing a legal entity in each country. The EOR becomes the official employer for tax and legal purposes while the employee continues to work directly for the client company.

    The key functions of a Global EOR include handling all legal and HR responsibilities such as payroll, taxation, employment contracts, and compliance with local labour laws. This arrangement allows companies to rapidly deploy staff in new markets, ensuring that they are fully compliant with local regulations, which can be complex and varied across different jurisdictions.

    For the employee, being hired through a Global EOR means they receive a local contract, are paid in local currency, and have their taxes and social security contributions managed according to local laws. This approach offers a seamless experience, akin to being hired directly by the company they are working for, with the added security of local legal and HR support.

    Global EORs provide businesses with a degree of flexibility, allowing them to test new markets without the long-term commitment and expense of setting up a foreign subsidiary. This is particularly beneficial for companies in the early stages of international expansion or those operating in industries with rapid market fluctuations.

All-In-One Global Employment Solution

Express Global Employment provides comprehensive services for building a global team, handling all aspects from hiring to compliance. Here’s what a Global Employer of Record can do:

  • Global Mobility Support: Simplifies onboarding and immigration, enabling quick onboarding and engagement of international talent.
  • Effortless Onboarding: Streamlines global employee onboarding to enhance productivity and speed up results.
  • Global Payroll & Benefits Management: Manages international payroll and benefits, ensuring compliance and competitive compensation.
  • Borderless Expansion Without Local Entities: Facilitates workforce expansion in 190 countries, removing the need for local business entities.
  • Hire Internationally, Operate Everywhere: Offers support for scaling operations and seizing international opportunities swiftly.
  • Risk-Free Market Navigation: Provides expert guidance for secure expansion, managing permanent establishment, employee misclassification risks and compliance challenges in new markets.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly specialised areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment


Businesses in the process of expanding globally often face challenges when it comes to compliantly onboarding employees in foreign countries. In most cases, legal compliance requires the establishment of a legal in-country business entity, a complex, costly and time-consuming process that many employers are not ready to undertake.

To help your organization legally onboard and payroll a workforce in the Faroe Islands, Acumen International offers a global employment solution via our Global Employer of Record / EOR. As a global employment organization, Acumen International serves both end employers and service companies representing international clients. Partner with Acumen International, and let us help you handle your global employment and HR needs.

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Key Functions of Global Employer of Record (EOR)

  • Legal and HR Responsibilities: Manages payroll, taxation, and employment contracts and ensures compliance with local labour laws.
  • Local Compliance: Ensures that employment practices adhere to the legal requirements of the employee’s country.

Advantages for Companies

  • International Expansion: Enables businesses to expand into new markets without establishing a local entity.
  • Rapid Talent Deployment: Allows quick staffing in new countries, aiding business growth and market testing.
  • Flexibility: Offers a solution for testing new markets without long-term commitments or the costs of setting up foreign subsidiaries.
  • Risk Management: Reduces the risk of non-compliance with local laws, which can be complex and vary by country.

Advantages for Employees

  • Local Contract: Employees receive a contract that complies with local laws.
  • Local Pay and Benefits: Paid in local currency, with taxes and social security managed locally.
  • Seamless Experience: This is similar to being directly employed by the company they work for, with the added security of local legal and HR support.

Strategic Global Expansion Solution

  • Global Mobility: The Global Employer of Record is ideal for companies aiming to manage international employees efficiently. It offers streamlined market entry with minimal investment.
  • New Markets Testing: Facilitates businesses in the early stages of international expansion or industries with rapid market changes by providing a flexible and low-risk entry into new markets.
  • Streamlined Market Entry: Enables lightweight investment in new markets, reducing the complexities and costs typically associated with setting up foreign operations.
  • Easy Exit Strategy: Offers compliant and straightforward mechanisms for terminating international employment, ensuring legal adherence and reducing potential liabilities.

Enhancing Intellectual Property Protection through Global EOR Services

Navigating intellectual property (IP) management in international business requires a strategic approach, especially when dealing with various jurisdictions. A Global Employer of Record (Global EOR) plays a crucial role in this scenario, offering a structured method for handling IP rights across different countries. Key elements of this strategy include:

Legal Compliance and Contractual Precision

  • A Global EOR should offer assistance in formulating contracts that comply with the IP laws specific to each country, utilising local legal expertise.
  • Ensuring these contracts are precisely tailored is essential to meet the legal requirements of different jurisdictions.

Comprehensive IP Protection through Contractual Clauses

  • Contracts provided by the Global EOR should incorporate strong IP protection clauses.
  • These clauses are designed to ensure that any IP rights generated by employees are automatically transferred to the client, providing a clear legal basis for IP ownership.

Expertise in Local Legal Frameworks

  • The Global EOR can facilitate connections with knowledgeable local legal counsel.
  • This is critical for navigating the complexities of IP laws in each jurisdiction, ensuring comprehensive legal protection for the client’s IP.
  • Given the dynamic nature of international IP laws, the Global EOR can actively monitor legal changes and adjust strategies accordingly.
  • This proactive approach ensures ongoing compliance and protection in the face of evolving legal landscapes.

Global Payroll Calculator Helps You Streamline Global HR Operations

By creating the Global Payroll Calculator, we’ve done the global payroll and tax math and compliance for you.

  1. Eliminate the time-consuming and costly process of doing your manual calculations.
  2. Gain instant access to up-to-date salary cost breakdowns based on local tax laws and regulations and update in real-time with the latest employment and tax legislation changes across 190 countries.
  3. Stay compliant on all international payroll matters, including local taxes, labour rules, and benefits.
  4. Minimized the risk and global cost-of-hire.

Global EOR Efficiency: Reducing Vendor Complexity

Utilising a single Global Employer of Record partner empowers businesses to manage employees across multiple countries efficiently. This unified approach simplifies complex international HR processes, providing consistency in employment practices and compliance standards across different jurisdictions. It eliminates the need for multiple local HR teams or legal advisors, ensuring a cohesive and streamlined strategy for global employment.

A Global Employer of Record can effectively consolidate multiple services, replacing the need for various vendors across jurisdictions:

  1. Payroll and Tax Compliance: Manages payroll processing, tax withholding, and reporting, aligning with local regulations.
  2. Benefits Management: Constructs and administers comprehensive and competitive employee benefits packages, adhering to local laws.
  3. HR Expertise: Offers a full range of HR services, including streamlined and compliant employee onboarding, talent management., and offboarding.
  4. Background Verification: Conducts employee background checks, ensuring compliance with regional standards.
  5. Intellectual Property Assistance: Aids in protecting intellectual property rights across different jurisdictions.
  6. Tax Consultation: Provides expert advice on local tax laws and compliance.
  7. Translation Services: Offers language support to bridge communication gaps in multinational operations.
  8. Legal Advisory: Delivers legal expertise, including contract review and regulatory compliance.
  9. Immigration Guidance: Assists with work permit sponsorship and visas for international employees, simplifying the immigration process.

Spotlight on the Faroe Islands

The Faroe Islands (the Faroes or Faeroes) are a North Atlantic archipelago and island country in the Kingdom of Denmark. Along with Denmark and Greenland, it is one of the three constituent countries that form the Kingdom of Denmark.

  • Location – It is located north-northwest of Scotland and about halfway between Norway and Iceland.
  • Capital – Tórshavn.
  • Official languages – FaroeseDanish
  • Population – Aruba has a population of about 53,882 and an area of 1,399 km2 (540 sq mi)(2022)
  • Currency – Faroese króna (DKK)
  • Holidays – New Year’s Day, Maundy Thursday, Good Friday, Easter Sunday, National Flag Day, Prayer Day, Ascension Day, Whit Sunday, Whit Monday, Constitution Day, Saint Olav’s Eve, Saint Olav’s Day, Christmas Eve, Christmas Day, Second day of Christmas, New Year’s Eve

Acumen International offers a global PEO and payroll solution to take care of all the details of payroll while ensuring full compliance with in-country labour and taxation laws. To get more information about Acumen’s Global PEO and payroll service in Faroe Islands click here.

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