Legal challenges for remote teams and how Carrom can help
Disclaimer: This is not a piece of legal advice, but information acquired through spending time with remote teams and talking to people who run remote teams.
Building a remote team has lots of challenges. Apart from the task of identifying the right candidate, and hiring them most of the challenges faced by remote teams are related to local employment laws.
Here are a few common challenges and potential solutions.
If you have remote workers in different countries, you need to make sure you are paying your employees adhering to the local laws. Different countries have different minimum wage requirement, and rules regarding maximum working hours. You also need to factor in the concept of overtime(doesn’t matter with full-time employees), and tax deductions. Add on top of that the pain of transferring the money to different destinations with different currencies and conversion rates. Doing calculations and running a multi-currency payroll can be time-consuming and strenuous. You might need a dedicated team working full time just for this.
How Carrom can help
Carrom has local partners in multiple countries that would take care of the payroll setup in the respective country. Your employee would be part of our local partner’s (or our legal entity itself in certain countries) payroll and will comply with all local laws, including proper tax filing. The monthly salary would be calculated including all the reimbursements and will appear on your dashboard. All you need to do is make some clicks every month to send the payroll amount through our web interface. Leave the rest to us.
Health and Benefits
Just because your remote employee is not working as part of a physical office, doesn’t mean that they are exempt from proving workplace safety and benefits. Different countries have different laws regarding mandatory health insurance that has to be provided to the employee. Like every other employment law, this is also vastly different. Policies regarding the number of vacation days are also different. You need to make sure, the minimum number of vacation days are taken by the employee every year, else it can lead to hefty penalties.
How Carrom can help Once your remote employee is part of our local payroll, we will take care of the benefits that an employee needs to provide. This includes mandatory health insurance and other benefits stipulated by local laws. Employees can request for vacation days, an employer can track the number of days taken so that they stay compliant. Employees will have a self-help portal to access the documents (payslips, insurance, work contract) they need at any time.
Local employment contract and onboarding
It would be really hard to provide a one size fits all solution when it comes to employment contracts. Again, because of the disparity in local employment laws, it is always a good idea to provide country specific work contracts, that covers all the basics and your company specific conditions.
How Carrom can help We can provide you with country specific employment contract, which you can customise to include your own terms. Simple as that.
Firing an employee
Let us face it - shit happens. Things might not always work out. You’d need to fire an employee at times - this could be due to many reasons. Different countries treat the firing of employees differently. There are local employment laws that protect employees from being fired on a fine morning.
How Carrom can help
We always collect(by choice), an amount that equals one month of employee’s salary as a refundable deposit. In an unlikely event of an employee leaving the company, this can optionally be used to settle things between the employee and employer to work around the employment laws - like an out of court settlement. In case of an employee leaving the company voluntarily, or by mutual agreement this amount can be refunded once the employee is removed from our local payroll.