Hiring globally is no longer a competitive edge. Doing it right is.

The Compliance Compass: Why Audited EORs—and Internal HR Teams—Are the GPS Through Global HR Risk
Every company says “our people are our most valuable asset.” But in today’s cross-border employment landscape, compliance gaps, misclassifications, and inconsistent HR processes expose companies to severe legal, tax, and operational risks. The challenge? Most businesses either outsource to EORs (Employer of Record) without vetting their compliance, or they manage global HR internally without fully understanding the legal exposure.

To close that gap, The IEC Group launched the Global HR Compliance Audit Program—designed for both:

• EOR service providers who want to demonstrate credibility and operational maturity.
• Internal HR teams managing international employees through local entities or direct contracts and want to understand where they may be non-compliant.

With 1,000+ control points across ten compliance domains, this certification doesn’t just assess risk—it builds infrastructure, trust, and long-term readiness. Whether you outsource global HR or run it in-house, compliance is no longer optional—it’s the foundation of your workforce strategy.

The Global HR Dilemma: Who Really Owns Compliance?

Global hiring is easier than ever—but compliance complexity has never been higher. While platforms can help with onboarding, payroll, and benefits, they don’t solve the root issue: knowing what’s legal, what’s mandatory, and what’s risky—in each country.

Too often, this leads to finger-pointing:

• HR says Legal should handle local law compliance.
• Legal says HR is managing onboarding.
• Finance wants cost visibility, not liability.
• Operations just want talent in seats—fast.

Without a central function accountable for compliance, the cracks show quickly.

Whether you use an EOR or manage global hiring in-house, you need clarity, structure, and accountability.

The IEC Group’s Compliance Audit: Two Audiences, One Purpose

For EOR Providers:

The IEC Audit verifies what EORs claim to do—not just in marketing, but in reality. It provides:

✅ Independent validation

✅ Certification & logo for marketing

✅ Full maturity scoring per compliance area

✅ A structured improvement roadmap

✅ Competitive differentiation

For Internal HR Organizations:

The same audit model is adapted for multinational companies who run global hiring in-house, often across dozens of countries. It helps them:

✅ Identify hidden compliance gaps

✅ Reduce audit and litigation risk

✅ Benchmark internal practices vs. EOR standards

✅ Prepare for potential outsourcing

✅ Build cross-functional governance across HR, Legal, Finance

The 10 Domains of Global HR Compliance

Whether audited as a service provider or internal HR function, the same 10 areas define compliance health. Each one is assessed by the IEC audit through documentation review, self-assessment, maturity scoring (CMMI model), and spot checks.

1. Legal & Licensing
   • Are required business registrations in place?
   • Are hiring entities licensed where necessary (e.g., labor leasing in DE)?
   • Are employee classifications legally sound?
2. Employment Law
   • Are contracts localized?
   • Are local policies for probation, leave, termination, etc. up to date?
   • Are works councils or union obligations met?
3. Tax & Payroll
   • Are correct tax deductions applied and reported?
   • Is shadow payroll used appropriately?
   • Are benefits taxed correctly?
4. Benefits & Social Security
   • Are statutory benefits consistently applied?
   • Are supplemental benefits clearly documented?
   • Are social security contributions aligned with law?
5. Data Protection
   • GDPR and/or local data privacy rules respected?
   • Are consent mechanisms and data processors vetted?
   • Is employee PII stored securely?
6. Occupational Health & Safety (OHS)
   • Even remote teams or client-based employees are covered.
   • Insurance policies in place?
   • Safety reporting and training documented?
7. Employee Lifecycle
   • Are onboarding, offboarding, and employment changes properly tracked?
   • Are processes localized or overly centralized?
8. Client–Provider Agreement / Internal SOPs
   • For EORs: Do contracts clearly outline compliance scope?
   • For HR teams: Are internal responsibilities well-documented?
   • Are vendor and employment terms updated?
9. Ongoing Compliance Monitoring
   • Is there a process to track law changes?
   • Who updates documentation?
   • How are employees and managers informed?
10. Certifications & Standards

• ISO 27001? 27701? OHS 45001?
• External audits performed?
• Internal audit processes defined?

1. Optional: Freelancers & the Challenge of Proper Classification

• Many companies rely on freelancers, contractors, or gig workers to drive global operations—especially in tech, creative, and consulting roles.
• But misclassification is one of the most common and costly compliance violations.
• Make sure you fully understand what it takes to be compliant in each country.

HR Departments Without an EOR

Not every company uses an EOR. In fact, many organizations have already built local entities or rely on local partners.

But here’s the issue: They rarely run full compliance audits across those countries.

That’s where the IEC Compliance Audit steps in:

• You provide existing documentation and complete a structured self-assessment.
• We review the evidence, sample countries, and evaluate process maturity.
• You receive a detailed risk report, compliance maturity score, and improvement roadmap.
• And if applicable, a Certificate of HR Compliance Readiness.

This lets your internal team proactively address compliance risk before regulators—or employees—do.

The IEC Audit is NOT Just an Inspection. It’s a Blueprint.

What makes the IEC Audit different?

🔍 It doesn’t just check boxes. It evaluates systems, processes, and maturity.

📊 It’s diagnostic, not punitive. Every audit includes a visual maturity report with country-specific feedback.

🎯 It helps plan the future. You’ll know if you’re ready to grow, or what must be fixed first.

💡 It’s strategic. Legal teams, HR leadership, and risk committees all gain clarity on how HR compliance operates globally.

Sample Benefits: For EORs and Internal HR Teams

✅ EOR Providers

• Certification to market to clients
• Independent validation to build buyer trust
• Improvement roadmap for compliance & maturity
• Proof of operational excellence

✅ Internal HR Organizations

• Risk discovery before local regulators get involved
• Benchmarking vs. market standards
• Internal alignment between HR, Legal, Finance
• Roadmap to prep for scaling (or outsourcing)

What It Costs and What You Get

• Price: USD 25,000 for a full EOR or Internal HR audit
• Add-ons (e.g., PEO, gig workers, regulated industries): Specially priced depending on scope

Deliverables:

• Full Audit Report & Maturity Matrix
• Summary Risk Findings
• Tailored Improvement Recommendations
• Compliance Certificate
• Marketing Toolkit (for certified EORs): Certification, IEC Logo, Co-branded press release, Social banners, PDF compliance one-pager, Inclusion in IEC EOR Digest, Option to co-publish white paper

Bottom Line: Own It or Outsource It—But Don’t Ignore It

Whether your global people infrastructure is built in-house or via partners, compliance is your responsibility.

And now, for the first time, there’s a way to prove it.

Don’t just tell your board you’re compliant. Show them.

👉 Download the White Paper

The Compliance Blueprint: Understanding EOR & HR Compliance in 2025

In partnership with WorkMotion — the first certified EOR provider under the IEC Compliance Audit Program.

Discover:

• The 10 domains of compliance
• How maturity is measured
• Common blind spots in global HR
• What every CHRO should track
• Why EOR certification matters
• And how internal HR teams can prepare for global growth

👇 Fill out the form below and Get the White Paper and the Audit Offering