Placing candidates in overseas companies can be a very good way of generating additional profit and helping your clients if they have an international reach. Often overseas placements can be at much higher profit margins depending on the country and the complexity of the roles being filled.
Whilst the recruitment process can often be similar to making a UK placement, there can be some additional hoops the agency needs to comply with to get paid for the placement made.
Here are some things you will need to consider:
- CURRENCY CONVERSION
Often placements outside of the UK will need to be invoiced in a different currency so it is advisable to see how the conversion of the currency may affect the profits and whether this can be mitigated. Setting up a bank account in the required currency will ensure that there is no currency lost on the payment being made. However, when you convert this back into sterling, there will be a currency loss so you may wish to use an exchange company to minimise any losses.
- CONTRACTOR FUNDING
If you are making contractor placements which are to be funded by a finance arrangement, then you will need to speak to the finance provider to ensure they are happy to fund these under the existing arrangement. Your finance facility provider will need to set up a currency account to receive funds from the client and fund the placement in the same currency to avoid any currency losses for the agency.
- WITHHOLDING TAXES
Some countries have tax regulations which stipulate that any funds leaving the country must have a withholding tax deducted from the amount due. Some countries have double taxation agreements with the UK to reduce or mitigate this tax, so it is advisable to do your research on how to avoid these additional charges.
- CONTRACT LAW
When making placements, you should aim to get the client to sign the agency contracts which are under UK law. However, if a client insists on the agency signing their own contract template, this may be under the country law which may not be in favour of the agency in certain circumstances.
- PAYING CONTRACTORS COMPLIANTLY
If the placements being made are for contract work, then it is important to ensure that they are paid correctly based on the rules of the host country. This may mean working with an international payroll provider who can ensure that the candidate is paid correctly and compliantly.
MAYACHI LTD provides help, advice and support to recruiters looking to make permanent and contract placements with overseas clients. MAYACHI LTD has many years experience of working with recruiters who have made placements in over 75 different countries and in numerous currencies to ensure that they have been made compliantly within the countries’ rules and regulations.
