Legal & Compliance Workflow
Risk mitigation for global employment
Compliance Journey
Step 1Risk Assessment
Evaluate your current global employment setup for compliance risks.
Misclassification Risk
Termination Liability
PE Risk
Risk Factor Explanations
What it means: Risk of contractors being reclassified as employees by local labor courts.
Cost impact: Typically 1-3x annual salary in back wages, benefits, taxes, and penalties.
Key factors: Using contractors, high-regulation countries (Brazil, France), control over work methods.
What it means: Legal exposure when terminating employees in countries with strong labor protections.
Cost impact: 3-24 months salary in severance, plus legal fees and court costs.
Key factors: Germany (works councils), France (CDI contracts), Brazil (CLT protections).
What it means: Risk of creating taxable presence triggering corporate tax obligations.
Cost impact: 15-35% corporate tax on attributed profits, plus penalties for non-filing.
Key factors: Sales activities, contract signing authority, fixed offices, dependent agents.