Essential Licenses & Legal Requirements for Global Recruitment

Hiring top talent from around the world is now a must for businesses that want to stay competitive and grow internationally.

However, dealing with licenses, regulations, and compliance can be challenging since every country has its own rules. It’s important to understand work permits and employment contracts and ensure compliance with local employment laws for ethical and legal hiring across borders.

At Deel, we have helped many companies tackle these global hiring challenges. This article highlights the key licenses and requirements needed for successful international hiring and shows how Deel makes the processes of hiring, onboarding, and managing global talent easier.

With our support, you can simplify your journey of hiring internationally, making it effective, compliant, and focused on creating a strong global team.

Compliance in international recruitment

Compliance is essential in international recruitment, focusing on the laws and ethical standards related to hiring practices in different countries.

The International Labor Organization (ILO) established the International Labor Standards
(ILS) to enhance working conditions globally. This framework helps guide international recruitment and ensures that hiring practices align with each country’s labor laws.

Recruitment agencies must follow various staffing regulations to define employees’ basic rights and conditions of employment. Although these rules can differ by region, they all aim to protect workers’ rights.

Key regulations enforced by government agencies include:

• Employment contracts: Clear documents that detail the terms of employment such as salary, working hours, leave, and termination rules
• Minimum wage and benefits: Regulations that guarantee fair pay and access to benefits like vacation, sick leave, healthcare, and retirement plans
• Working hours and overtime: Guidelines on work schedules, including rules about weekends and public holidays
• Health and safety: Standards for workplace safety, training, handling hazardous materials, and providing necessary protective equipment
• Anti-discrimination: Laws that prevent discrimination based on gender, race, religion, disability, or age in hiring, promotions, and terminations
• Termination and severance: Laws governing how terminations should occur, including notice periods, severance pay, and employee rights

These regulations help ensure fair and ethical hiring practices worldwide.

See also: Compliance Challenges Companies Face When Growing Globally

Do you need an international recruitment license?

There is no single international recruitment license. The requirements vary by country and the activities involved in recruiting.

Country-specific rules

Some countries have rules for recruiters who hire internationally to ensure fair practices. Nations like the United States, Canada, the United Kingdom, Australia and Singapore have their own international recruitment regulations. It’s crucial to check the specific requirements before contacting candidates so you understand the rules for both countries.

For example, if you’re a recruiter in the US looking for a candidate in Ontario, you won’t need a license from Ontario to onboard them.

If you operate in New York, you must obtain an Employment Agency License. This license is necessary for businesses that assist individuals or companies in finding jobs or employees.

Keep in mind that some businesses, like temporary employment agencies and theatrical personal managers, are exempt from this requirement.

See also: Mastering Global Employment Laws with Deel: Startups Guide

Examples of recruitment restrictions and licensing requirements

Understanding the legal requirements for hiring global talent in the countries you are interested in is crucial. These laws help protect the rights of both employers and job seekers and regulate recruitment practices.

Many countries require recruiters to have a license, registration, or certification to operate legally. Here are some examples from different countries:

• Switzerland: Foreign recruitment agencies cannot recruit for companies in Switzerland or local candidates for jobs abroad without partnering with a Swiss recruiter or opening a subsidiary
• Philippines: Foreign agencies can hire candidates from the Philippines but must meet more accreditation requirements than local agencies
• Nigeria: Different forms must be filled out if you want to work with international clients
• United Kingdom: Recruitment agencies need a sponsor license to hire most workers from outside the UK
• India: Agencies must have a recruitment license to legally match Indian citizens with international employers
• Canada: Employment agencies need a license if they plan to recruit workers from outside the country.

In addition to thorough research, working with a licensed hiring agency or legal experts in international recruitment can ensure that you follow local laws. These professionals can help you manage the challenges of cross-border hiring while avoiding legal issues.

See also: Stop Compliance Barriers Holding Back Your Talent Strategy

Do US states require a recruitment license?

In the United States, the rules for recruitment licenses differ by state. Even if a recruiter is not hiring from abroad, these differences matter when hiring a remote worker who is a permanent resident in another state.

In many cases, you will need an Employment Agency License to hire across the US, particularly in states like Alaska, Connecticut, Iowa, Massachusetts, Nevada, North Dakota, Washington, and Wisconsin. Before hiring in different states, it’s important to check if you need to update your business license.

Here are some steps to help you apply for a US recruitment license more easily:

1. Look up the specific requirements for the state you are working in.
2. Understand the legal rules for license eligibility in that state.
3. Create policies to demonstrate your commitment to ethical recruitment practices.
4. Collect necessary business documents, ensuring they are current and correct.
5. Prepare your application materials as directed on government websites and other resources.
6. Submit your application and follow up to make sure the authorities received it. Keep copies of everything for your records.

Typically, you will need the following documents for your application:

• Application form
• Proof of worker’s compensation insurance
• Proof that you meet bonding requirements
• Individual employment agent license (if needed)

Application fees can vary, and you should expect a two-week processing time. You typically need to renew licenses every one to two years.

The process of obtaining a recruitment license should be smooth if you provide all necessary documents and meet the required standards (related to your character, skills, and financial history).

Consult a compliance expert to determine if your target country requires a license and for what professions.

See also: Employment Contract in the US - Free Template

How Deel helps you hire internationally

Whether you’re looking to offer employment opportunities on a full-time, part-time, or contractual basis, you no longer have to limit yourself to the local talent pool.

Deel helps thousands of companies expand globally by offering everything you need to scale a global team, including international recruitment tools and guidance. Our robust platform empowers you to hire anywhere while ensuring safety and compliance, but that’s not all.

Deel also provides tools and features to help you manage your team, boost productivity, and streamline workflows while running efficient global payroll.

Deel’s global hiring toolkit is a free resource that empowers big and small businesses to make smart hiring decisions through various tools such as:

• The Salary Insights Tool helps assess job market salary rates, especially when hiring in lesser-known markets
• The Employee Cost Calculator is based on the employees’ country of residence, considering local laws, complex international tax systems, and international payroll requirements
• The Take-Home Pay Calculator assists with calculating taxes, benefits, and other payroll deductions
• The Global Employment Comparison instantly compares local laws and employer costs like benefits, holidays, minimum wage, and onboarding times across 80+ countries
• The Global Benefits Tool ensures you offer the right package. We’ll help you navigate the statutory, common, and competitive benefits in each market
• The Misclassification Quiz helps mitigate worker misclassification risks using our combo of AI and award-winning research into employment court case

Discover how Keyrock scaled global hiring with Deel.

See also: How to Attract, Hire, and Retain Top Remote Talent in 7 Steps

Hire contractors compliantly with Deel Contractor of Record

Deel Contractor of Record assists businesses by legally hiring contractors on their behalf and assuming total liability in the event of misclassification claims. The feature handles various recruitment tasks, including hiring, compliance, invoicing, and paying contractors. It offers a high level of protection with optimal flexibility.

Discover how Tiqets hires compliantly around the world with Deel Contractor of Record.

See also: Employee Misclassification: Contractor vs. Employee

Hire employees compliantly with Deel EOR

Whether you’re hiring a remote social media manager, expanding your nonprofit team to new locations, or wanting to employ local electricians to keep your satellite office in check, it’s important to remain compliant.

Deel handles the legal and administrative complexity of hiring abroad with our Employer of Record model, allowing you to expand your talent pool, remain compliant, and spend less time on payroll.

Discover how ShopBack hired skilled talent in countries without entities with Deel.

See also: Pros and Cons of Hiring with an Employer of Record (EOR)

Get work visas with Deel immigration

Compliance is key when hiring internationally, and you have to think beyond the federal government requirements. Deel offers visa and immigration support to help you get worldwide visas and support relocations without cumbersome administration.

Deel offers one-on-one support to speed up immigration and provides a centralized platform to streamline the process.

Discover how TalentQL relocates talent and supports knowledge exchange with Deel.

Watch the webinar: Streamline international hiring with EOR visa sponsorship

Hire, pay, and manage global employees with Deel

At Deel, we don’t abandon you once hiring is complete. Instead, our platform offers comprehensive assistance for managing, engaging, and paying global employees and contractors. The following tools help to manage your team from anywhere in the world:

• Deel HR: Manage the whole workforce efficiently
• Deel Engage: Slack plugins to keep the team connected and engaged
• Deel IT: Equip your team with everything that they need to work from home
• Equity: Provide your global teams with equity
• Background checks: Optimize your hiring and screening workflows in 200 countries and regions
• Workspaces: Find flexible workspaces around the world
• Integrations: Automate your HR workflow by integrating various software
• API: Boost your products and processes
• Payroll: Run efficient payroll in over 100 countries
• PEO: Manage payroll, benefits, and HR for US teams

Building an international team on your own can be time-consuming and intimidating. With Deel, you have a reliable ally who can streamline and accelerate the process.

Want to learn how it all works? Book 30 minutes with a product expert to get your questions answered.