I work for a technology startup which has remote contractors in several different countries, one per country (programmers, designers, etc.). We find talent in different places and some contractors are full time with an SLA contract. We'd like to make these contractors employees however, with holiday and sick pay etc., especially our contractors in Europe. To be clear: the contractors are permanent residents and citizens of the countries in which they're based and have no intention of moving to the UK. My company is a UK Limited company. Two questions: Does HMRC care if UK companies have overseas contractors which function as employees (work full time etc.)? Is HMRC likely to consider those contractors as employees for legal purposes, as they would British contractors? Is it possible for a UK company to legally employ a foreign citizen residing in a foreign country, without having any legal entity (or payroll) in that country? If my company signs a contract of employment (under UK jurisdiction) with someone whos living in, say, Poland, would it be valid and provide the Pole with enforceable rights? Thanks!