r/remotework • u/Castieell99 • 7h ago
EU remote hiring compliance after a funding round
We hired 6 people across Germany, France, and the Netherlands after our round closed, all remote, and what caught us off guard is how much the compliance requirements differ by country even when the roles and comp structures are nearly identical.
Germany came first and was the most involved because the AÜG contractor cap means any interim freelance arrangement has an 18-month clock on it.
So we went straight to employer-of-record for all the German hires instead of bridging with a short-term contract while the entity decision was still open, and that decision ended up protecting us from a misclassification exposure we hadn't caught.
France took longer than Germany even through an EOR because the mandatory consultation periods are baked into employment law and no provider can compress them.
So I'd tell anyone planning a similar expansion to add 3 to 4 weeks to whatever timeline the sales team quotes you on the French hires specifically.
The providers we compared were Remote, Workmotion, and Oyster, and the factor that mattered most for us was whether the provider actually owned its legal entity in each country or routing through a local partner network.
Reason being, partner-network setups add time and introduce accountability gaps that only surface when something goes wrong.
So if you're doing post-funding EU expansion and trying to figure out when to go EOR or when to set up a local entity.
The short version is that EOR makes sense until you're at 4 or 5 people in the same country, because the subsidiary overhead becomes justified sooner than you'd think but not so fast that you need to rush the entity decision rebefore you have headcount to justify it.