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Mostly because of 2 reasons: 1. They dont want to deal with complex legal, immigration and employment laws. If you are a US company, you can just deal with IRS and state laws. 2. They want you to be able to easily travel to headquarters if needed. Much easier if you are in the country. The reality is that remote hiring is awesome but there are legal and HR related risks that most companies dont want to deal with.
What I wonder is, how does Gitlab do it? They hire pretty much anywhere in the world, and somehow, it seems unlikely they have a legal representing entity in all the countries.
Mostly because of 2 reasons: 1. They dont want to deal with complex legal, immigration and employment laws. If you are a US company, you can just deal with IRS and state laws. 2. They want you to be able to easily travel to headquarters if needed. Much easier if you are in the country. The reality is that remote hiring is awesome but there are legal and HR related risks that most companies dont want to deal with.
3: It's easier to work when everyone's working hours overlap
Reason being taxes and labor relations laws (PTO requirements, health insurance isn't going to extend to your country -- or really any of the benefits package).
I've been with remote employers who will go a step further and also restrict individual states (e.g. no California) or only hire in states where they have existing employees to reduce the load on HR.
They'll need to register in each State they've got employees. If they're taking on employees internationally, they might need to set up some kind of legal entity in that country. Which if it's a country like China, oh boy, that's a lot of paperwork.
I think you got an answer to your question. Legal reasons would be the number one reason, most likely. What I wonder is, how does Gitlab do it? They hire pretty much anywhere in the world, and somehow, it seems unlikely they have a legal representing entity in all the countries.
Everywhere else it must be similar to freelancing. You give them receipts and they pay. But you still have a contract with the company. But if you both are in different countries I am not sure how much practical value does that contract have.
I think you got an answer to your question. Legal reasons would be the number one reason, most likely. What I wonder is, how does Gitlab do it? They hire pretty much anywhere in the world, and somehow, it seems unlikely they have a legal representing entity in all the countries.
They have legal entities in quite a few countries, but most of them are in countries that have labour-friendly rules. https://about.gitlab.com/handbook/finance/payroll/#legal-ent... Everywhere else it must be similar to freelancing. You give them receipts and they pay. But you still have a contract with the company. But if you both are in different countries I am not sure how much practical value does that contract h…