When hiring through Remote People as your Employer of Record (EOR), employees are legally employed by us rather than your company.
Because of this structure, some job titles may need to be adjusted to ensure compliance with local labor laws and to reduce legal and financial risks.
This most commonly applies to senior or executive-level roles, such as C-suite and Vice President titles.
Why are job titles adjusted?
Job title adjustments help protect you, the employee, and Remote People by ensuring the role aligns with local regulations and does not create unintended legal exposure.
1. Reducing Permanent Establishment (PE) risk
Using executive titles (e.g. CEO, CFO, CTO) may indicate that the employee has decision-making authority for your company in another country.
This can increase the risk of Permanent Establishment (PE) or co-employment claims, potentially creating unexpected tax and legal obligations.
2. Avoiding termination complexities
Executive roles are often less tied to clearly defined deliverables or reporting structures.
This can make terminations more complex and harder to justify under local labor laws, increasing the risk of disputes.
3. Limiting corporate liability
In some countries, senior titles imply authority to act on behalf of the legal employer.
Since Remote People is the legal employer, this could unintentionally give employees the authority to act on behalf of Remote People, creating legal and financial risk.
4. Protecting employees from personal liability
Certain executive titles may expose employees to personal legal responsibilities, including accountability for company decisions or compliance issues.
Adjusting titles helps ensure employees are not placed at unnecessary risk.
How are job titles adjusted?
During onboarding, Remote People works with you to assign a title that:
Accurately reflects the employee’s responsibilities
Aligns with local labor laws
Avoids implying executive-level authority
The goal is to maintain the integrity of the role while ensuring full compliance.
Examples of title adjustments
Chief Technology Officer (CTO) → Senior Technology Manager
Vice President of Sales → Head of Sales
Chief Operating Officer (COO) → Operations Manager
Key takeaway
Job title adjustments are a standard part of the EOR model and are essential to:
Maintain compliance
Reduce legal and tax risks
Protect both the employee and your business
If you have questions about a specific role or title, our team is happy to guide you through the best compliant option.
