How to Legally Hire Gig Workers Across Borders

The global gig economy has reshaped how companies access talent. From freelance developers in Eastern Europe to virtual assistants in Southeast Asia, businesses can now tap into a global workforce without the traditional constraints of geography or office walls. Yet, while the benefits are obvious — flexibility, speed, access to specialised skills — the legal complexities of hiring gig workers across borders are often underestimated. 

Without careful planning, companies risk compliance violations, tax penalties, or reputational damage. In this guide, we explore how to legally hire gig workers across borders, what you need to consider, and how platforms like Native Teams can simplify the process.

What is a gig worker?

A gig worker, also known as an independent contractor or freelancer, is an individual who performs temporary or flexible work rather than being employed permanently. These professionals may take on one-time projects or long-term assignments but operate independently, typically using their own tools, setting their own hours, and invoicing for services rendered. 

Unlike traditional employees, gig workers are not on payroll and are not entitled to employment benefits such as paid leave, pensions, or employer-provided healthcare. This distinction is crucial in how businesses engage them legally, especially when operating across jurisdictions.

Why hire gig workers?

Businesses turn to gig workers for many strategic reasons. Hiring flexible talent allows companies to scale their operations up or down depending on project demands, without committing to the legal responsibilities of permanent employment. For startups and SMES, this model offers a cost-effective way to access specialised skills — from design and development to legal and marketing — without the overhead of full-time salaries, benefits, or long-term contracts. 

For larger enterprises, engaging gig workers globally can support rapid market entry or help bridge talent gaps in areas where local hiring is difficult. In a digital-first economy, tapping into an international freelance network can be a powerful advantage, provided it’s done legally.

Legal considerations when hiring gig workers

Hiring across borders requires careful navigation of several legal domains. Each country has its definitions, rules, and penalties regarding employment classification, tax compliance, immigration, and more. Below are the most critical legal areas to address when engaging gig workers.

Worker classification: Contractor vs. employee

One of the most common and serious mistakes businesses make is misclassifying workers. While someone may be considered a freelancer in one country, that same person could legally be classified as an employee in another, depending on how the working relationship is structured. 

Key factors include control over working hours, dependence on your company for income, and whether the individual uses your tools and systems. Misclassification can result in back taxes, unpaid benefits, fines, and even bans from operating in certain jurisdictions.

Tip: When in doubt, consult a local legal expert or use an Employer of Record to ensure correct classification.

Tax and payroll compliance

When hiring a gig worker abroad, you're typically not required to withhold income tax or pay social contributions — unless that worker is reclassified as an employee under local law. However, local tax authorities may still require reporting or documentation. 

Additionally, incorrect invoicing or non-compliance with value-added tax (VAT) or goods and services tax (GST) rules can trigger audits. Some countries require proof that the worker is paying self-employment taxes, and if they’re not, your company could be held liable.

Tip: Use a global payroll platform or contractor management system that supports local tax compliance and automated invoicing.

Immigration and work permits

Even though your gig worker may work remotely, some countries still impose immigration or work authorisation requirements. For example, a contractor physically working in a country on a tourist visa might be violating immigration laws, and both the worker and the client could be penalised. 

Similarly, if your company has a permanent establishment in a country, hiring independent contractors could trigger additional scrutiny from immigration authorities.

Tip: Always confirm where workers are physically located and ensure their work status aligns with local laws.

Employment contracts and local labour laws

Many businesses assume that a simple freelance agreement will suffice. However, some jurisdictions require contracts in the local language, specific clauses, or official registration. Failure to comply can invalidate the agreement or open the door to legal claims, such as entitlement to severance or back pay. 

Additionally, even gig workers may be entitled to protections under local labour laws — including minimum wage, working hours, and health and safety. You can check the different types of employment contracts from our blog here.

Tip: Draft contracts that comply with the laws of the country where the work is performed, not just your home country.

Data protection and privacy

If your gig worker will have access to customer data, proprietary information, or internal systems, you must also consider data protection regulations. In the EU, for example, the General Data Protection Regulation (GDPR) imposes strict rules on data handling and transfer, and non-compliance can result in significant fines. Employers must ensure that contracts contain appropriate data protection clauses and that access is limited and monitored.

Tip: Review your data sharing practices and use secure platforms that comply with international data privacy standards.

Practical steps to legally hire gig workers across borders

Navigating the legal and operational complexities of hiring gig workers globally doesn’t have to be overwhelming. Following a structured approach, companies can build a compliant and scalable framework for international talent engagement.

Define your hiring goals

Start by clarifying your needs. Are you hiring for a one-off project or a long-term engagement? Will the worker have access to sensitive data or systems? Are you planning to scale your freelance workforce across multiple countries? The answers will shape your hiring model, legal approach, and risk management strategies.

Choose the right hiring model

Depending on your goals and the worker’s location, you can engage freelancers directly, work through a local intermediary, or use a global employment solution like an Employer of Record (EOR) or contractor management platform. Below is a breakdown of standard models:

Each model has advantages depending on your company’s resources and risk tolerance. For example, a direct agreement might be viable for short-term work, but for long-term or mission-critical roles, using an EOR can provide greater protection.

Ensure legal compliance

Once you’ve selected your model, it’s essential to align with local regulations. This includes drafting locally compliant contracts, verifying tax status, and ensuring proper classification. Partnering with a compliance platform or legal advisor at this stage can save considerable time and mitigate risk.

Onboard and manage workers

Onboarding doesn’t end with signing a contract. Gig workers should be provided with access to tools, communication channels, and a clear scope of work. Managing deliverables, timelines, and payments efficiently helps build strong long-term relationships and keeps operations smooth.

Monitor and audit compliance

Compliance isn’t a one-time task. Laws evolve, and what was compliant last year may not be today. Regular audits of contracts, payment practices, and data sharing are essential, especially as your freelance network grows. Using a centralised system to monitor your global workforce can help detect issues early.

How Native Teams simplifies global hiring

At Native Teams, we help businesses hire gig workers legally and efficiently in over 85 countries. Whether you’re managing a single freelancer or building a remote team, our platform offers compliant contracts, local tax support, automated payroll, and Employer of Record services. We bridge the gap between legal complexity and operational ease, so you can focus on growing your business, not navigating bureaucracy.

From worker classification and contract drafting to ongoing compliance monitoring, Native Teams acts as your global hiring partner, ensuring that every engagement is legal, secure, and scalable.

Conclusion

The global gig economy offers unprecedented opportunities — but only if you hire responsibly. Knowing how to hire gig workers across borders legally means understanding classification, taxes, contracts, and data security in every country you operate in. 

By taking a proactive approach to compliance and leveraging platforms like Native Teams, you can unlock the full potential of the global freelance workforce while protecting your business from legal risk. Ready to hire globally, legally, and with confidence? Let’s talk.