Third Party Employment Abroad

After reviewing an Employment Abroad Request, Global Support Services may determine that the request will require a third-party employment solution. A third-party employment abroad solution may be necessary if:

• The employee will work primarily from a location outside the U.S.
• The employee will be based permanently abroad or does not have plans to return to the U.S. for work.
• The employee cannot complete U.S. federal I-9 requirements or does not have U.S. work authorization.
• The employee cannot otherwise be compliantly engaged on Penn’s U.S. payroll due to their individual circumstances.

GSS will work directly with the hiring department to identify and support an appropriate employment abroad solution. Options may include:

Collaboration with a Partner Organization Abroad

Arranging for a foreign worker to become an employee of a local partner organization in the country of work, or for the worker to be paid through their current employer abroad, may be a good option. The local collaborating organization may be a university, an NGO, or another established organization that is willing to employ the individual in the country of work. Typically, the Penn department or the individual worker has some existing affiliation with the organization abroad.

In this arrangement, the worker is an employee of a local organization in the country where services are being performed. The administrative requirements associated with the worker’s employment (including payroll, benefits, and tax) are the responsibility of the local organization. The Penn department should establish a services agreement with the local organization, typically using University-approved templates and after review by the department, OGC, or Procurement Services, as appropriate, that clarifies the arrangement and establishes responsibilities of all parties. After becoming an approved supplier, the organization abroad may then invoice the Penn department for the costs of employing the individual, often for an additional fee, through the Penn Marketplace.

The hiring department is responsible for sourcing and vetting the partner organization and for negotiating the service agreement. Significant advance planning may be required to allow time for negotiation, executing an agreement, and having the partner organization onboarded as an approved Penn supplier.

Hiring through a Professional Employer Organization (PEO)

Professional Employer Organizations (PEO’s) are companies offering third-party Employer of Record services, including HR, payroll, benefits, and tax, in much the same was as a temporary staffing agency. If another partner organization in the country of work is not able to support the employment, a PEO may be a good solution. Global Support Services has established partnerships with approved PEO partners who can offer international employment solutions in more than 100 countries worldwide.

In this arrangement, GSS assists with having the worker hired by a PEO partner in the country of work, and the employee is then “leased” to Penn. As the worker’s legal employer of record, the PEO is responsible for managing the employee’s local payroll, benefits, tax, and local reporting requirements. PEO’s specialize in global employment and are therefore more experienced than Penn with host-country regulations. However, Penn may share liability if the PEO fails to comply with local laws. 

Employees must have a valid work authorization status in the country of work before they can be hired by a PEO. The Penn department is responsible for paying all costs of the employment abroad engagement, including salary, benefits, local statutory contributions, and PEO administrative fees. All costs associated with these engagements will be paid by invoice to the approved PEO partner via the Penn Marketplace.