4 min read

How to Protect Your Business When Hiring Freelancers Around the World

By Cristin Monnich, Head of Global Compliance Strategy & GM of AOR at Worksuite


 

When you’re hiring freelancers across borders, misclassification is one of the biggest risks your business can face. You may think of freelancers as self-employed, but local laws in countries like the Philippines, Egypt, or Brazil may see them as employees. If you get it wrong, your company could face back taxes, penalties, or even face permanent establishment risk.

At Worksuite, we’ve built tools to help companies like yours stay compliant without adding unnecessary friction and delays. During a recent conversation with one of our clients, I walked them through exactly how we protect them using two distinct layers of compliance: Worksuite Classify and Worksuite AOR. Here’s what this looks like in practice.

Step 1: Classification First

The first question we help you answer is: Can I legally engage this person as a freelancer in their country? That’s what Worksuite Classify is built to assess.

When you initiate a contract in our platform, the very first step is a brief classification questionnaire completed by the freelancer. This helps assess compliance from the outset by asking key questions such as:

  1. Where will the work be performed?
  2. Are you operating as a registered business, and have you taken the necessary steps to formalize that status?
  3. Do you work with other clients?
  4. Who determines your work hours and how or where the work is completed?

These questions are tailored by country—and often by local region—to align with relevant compliance standards. If a freelancer’s responses meet the local thresholds, they’re automatically approved and marked as “low risk” to proceed. If not, the contract is flagged for manual review. Our Global Compliance team steps in to evaluate whether any red flags can be addressed by gathering additional information or adjusting contract terms. If the risk remains high, we recommend alternate engagement models such as Employer of Record (EOR) or W-2 payroll.

Step 2: Contracts as a Compliance Vehicle

Classification isn’t just a report; it’s part of your workflow. We do this by embedding it into your Contracts Module. You can create templates for different types of work and include tasks, budgets, and project timelines, as appropriate. As soon as you submit a contract, our system runs the classification in the background.

Example Use Case

A customer recently asked us how to manage a video editor who often works on multiple fast-paced projects throughout the year, each with very short notice or advanced lead-time. We recommended creating a single annual contract with a not-to-exceed budget, and adding new tasks each time shoot is assigned. This helps to keep ahead of compliance with a streamlined approach to enable real-world flexibility.

Step 3: Use AOR When You Want to Hire Globally—Without the Legal Guesswork

When you’re looking to engage contractors in countries where you're unfamiliar with local labor laws—like Toronto, Dublin, or beyond—our Agent of Record (AOR) service gives you peace of mind. Many companies want to tap into global talent but don’t have the legal resources to craft compliant contracts in every country. That’s where Worksuite AOR comes in.

With AOR, we become the legal party issuing the contract to the freelancer. We ensure the agreement meets local legal requirements, take on processing payments, and provide indemnification—so you can confidently hire across borders without navigating complex legal landscapes yourself. The onboarding experience stays the same for your team, just with an added layer of compliance and protection.


 

Here at Worksuite, We Make This Process Easy for You

Navigating international freelancer classification can be complex, but we make it easy by:

  • Automating classification workflows with our Contracts Module, so vetting is part of your standard onboarding.
  • Providing real-time risk assessments and routing edge cases to our compliance experts.
  • Customizing the experience to match your internal processes, including contract templates and SOW-based flexibility.
  • Offering guidance on legacy contractor cleanup without forcing messy or broad transitions.
  • Delivering global coverage so you can hire with confidence in 190+ countries.
  • Resolving issues fast, with most cases reviewed and cleared within 24 hours.

Whether you're scaling globally or just starting with one new freelancer abroad, we meet you where you are—offering expert guidance while giving you the autonomy to make the right decisions for your business. It's your company—we're here to help you run it, your way, with confidence.

Handling Legacy Contractors

A common question I get is: What if I’ve already got dozens of freelancers working without classification? We don’t recommend forcing them all through the system at once. Instead, we’ll work with you to review existing SOWs and flag potential issues quietly. You make the decision to prioritize who needs to be reclassified or transitioned to a different model, perhaps opening a channel to allow for legacy contractors to finish up the remainder of closer term engagements, without disturbance.

To learn more about best practices for onboarding freelancers, visit our Freelancer Onboarding Guide.

Cost Model and Flexibility

Worksuite Classify and AOR are usage-based. That means you only pay for the freelancers you vet or engage through each model. You can start small—five freelancers, ten contracts—and scale from there. Pricing is either a flat fee per freelancer or a small percentage of invoice volume.

Timeline to Resolution

Once a freelancer completes their questionnaire, most cases are resolved within 24 hours. We move fast because we know your teams need answers quickly.

Global Coverage

We support classification in 190+ countries. That includes the U.S., all of Latin America, Egypt, Indonesia, and the Philippines. AOR is currently available in a smaller set of countries, and we’ll confirm exact availability when scoping your program.


 

Closing Thoughts

Risk mitigation isn’t about saying “no” to freelance work—it’s about saying “yes” with the right guardrails in place. Whether you’re working with five contractors or five hundred, compliance shouldn’t slow you down. With Classify and AOR, we’ve built scalable models that adapt to your team, your markets, and your pace.

If you’re ready to see how it works, let’s talk about a pilot.

Ready to hire freelancers globally—without the compliance headaches?

Let’s walk through a quick pilot to see how Worksuite Classify and AOR can help you move faster, stay protected, and build the workforce you need. Talk to our team!

 


 

Frequently Asked Questions (FAQ

Q: How fast will Worksuite flag and resolve compliance issues?

A: Most classification outcomes are returned within 24 hours. If an issue is flagged, we’ll either resolve it ourselves or loop you in immediately.

Q: Is classification automatic or manual?

A: Both. Our system automatically approves contractors who meet threshold requirements. Edge cases are flagged for expert review.

Q: Do we have to vet every legacy contractor?

A: Not at all. We can pre-audit your existing SOWs and help you decide where to focus. You choose whether to start fresh or apply changes retroactively.

Q: Does Worksuite support international compliance?

A: Yes. Classify supports 190+ countries, including Egypt, LATAM, the Philippines, and Indonesia. AOR is available in a growing set of priority markets.

Q: What’s the difference between Classify and AOR?

A: Classify: You keep the contract; we vet and indemnify.

A: AOR: Worksuite holds the contract, assumes the liability, and ensures local compliance standards are met.



 

Cristin Monnich

 

About the Author

Cristin Monnich is Head of Global Compliance Strategy at Worksuite, where she leads strategic initiatives across legal classification, onboarding compliance, and international labor frameworks. Cristin works directly with enterprise clients scaling global contractor programs and writes for legal, HR, and procurement teams who want to move fast — without missing red flags.