Remote People does not issue, administer, or facilitate any part of Employee Stock Ownership Plans (ESOPs), Restricted Stock Units (RSUs), or other equity instruments for clients or employees hired through our Employer of Record (EOR) service. This policy applies globally across all operating countries.
What Remote People Does Not Provide
Our EOR services do not include:
Reviewing or advising on client equity grant structures or agreements.
Calculating taxable value at vesting, grant, or exercise.
Withholding taxes on equity-related income through local payroll.
Filing or reporting equity-related tax events on behalf of the client or employee.
Why Equity Facilitation Is Restricted
Equity compensation represents a direct investment and commercial relationship between your company (as the issuing entity) and the individual worker. This is strictly separate from the employment relationship managed by Remote People as the Employer of Record.
In many operating jurisdictions, entering into direct equity or stock option agreements between a client and an EOR employee creates co-employment and regulatory compliance risks.
Extending Equity Programs to EOR Employees
If your organization chooses to grant equity or share options to team members hired through Remote People, the program must be structured, issued, and managed entirely independent of Remote People.
Your internal legal and tax counsel should determine:
How equity grants are documented, issued, and administered.
Applicable tax treatment, reporting, and filing obligations in the employee’s country of residence.
Whether local tax regulations require withholding, and which entity bears responsibility.
Note: Remote People does not charge advisory or processing fees for equity events, as we do not provide administrative or advisory services in connection with them.
Country-Specific Precautions
Certain jurisdictions enforce strict regulatory frameworks regarding direct agreements between client entities and EOR workers. For instance, local guidelines in countries such as Germany, South Africa, Italy, Japan, Lithuania, Saudi Arabia, and South Korea strongly advise against signing direct equity documents (such as stock option agreements or side letters) with EOR employees.
Please consult your Remote People Account Manager or Support Team if you have questions regarding country-specific employment safeguards.