Last updated: 15 September 2026
You do not need your own company abroad to use a consultant for occasional work. Four routes are in common use: a direct contract with each consultant, a contractor of record, an employer of record, or your own entity in each country. For work that is part time and hard to predict, the first two are the usual short list.
The choice turns on three things. Who carries the risk if a country decides the person is really an employee, how quickly you need people working, and how much admin your team can absorb. This page sets out the routes in plain terms. Where the right answer depends on your own facts, it says so.
What are your options without an entity?
There are four routes, and they differ in who holds the contract. You can contract each consultant directly as a self employed supplier. You can use a contractor of record, which puts a third party between you and the consultant. You can employ the person through an employer of record. Or you can set up your own entity in each country.
For occasional work, the last one is usually out. An entity costs money and time to open and run, and it makes little sense for a few days of work a month. That leaves a direct contract or a contractor of record for most buyers. An employer of record stays in reserve, for anyone whose work looks more like a job than a series of short assignments.
| Route | Who holds the contract | Who carries classification risk | How fast | What it suits |
|---|---|---|---|---|
| Direct contract | You and the consultant | You | Slow in a new country, because each contract needs local advice | Low volume in one or two countries you know well |
| Contractor of record | The provider and the consultant | Set by the contract you sign | Days to weeks, depending on the country | Occasional work in several countries at once |
| Employer of record | The provider employs the person | The provider, as the legal employer | Days to weeks | Work that is regular, managed and looks like a job |
| Your own entity | You and the worker | You | Months | Steady headcount and long term plans in one country |
What is a contractor of record?
A contractor of record is a company that holds the contract with your consultant, then invoices you. It checks how the person can be engaged in that country, keeps the paperwork, and pays them. You still choose the person and direct the work you have agreed with them. The consultant is not your employee, and not the provider's employee either.
The appeal for occasional work is that you avoid a new contract template, a local adviser and an entity in every country. The trade off is a fee for each contractor and a set of rules you have to work inside. Providers run their own checks, and some will say no to a country or to a type of role. Our guide to the model goes through the mechanics.
When is occasional work still employment?
Employment status is decided by the facts of the work, not by the words in the contract. A country looks at who controls the work, who sets the hours, who supplies the kit, whether the person can send someone else, and whether they are really running their own business. Calling someone a contractor does not settle the question.
Occasional work helps, but it is not a shield. The risk grows when the same person works for you over a long period, takes day to day instruction, or works only for you. In the UK, GOV.UK sets out the employment status categories and the tests behind them. Other countries use their own tests, so check each one before the first assignment. Our guide to misclassification covers the warning signs.
What changes when the work is regulated?
Some work is regulated in some countries, which means only people with a given licence or registration may do it. The question is not what your consultant studied. It is what they will actually do for you, and how the regulator in that country defines that work. Two countries can draw the line in different places for the same task.
So write the task down in plain words before you ask anyone. Say what the consultant will do, what they will not do, what they will produce, and who reads the output. The European Commission publishes a database of regulated professions for each EU country, which is a useful starting point. Then get a country by country view from a local adviser or your provider, because the title you give the role can matter as well.
What should you put in writing before the first assignment?
Three things matter most. What the contract covers, what you pay in every month of the year, and what happens when something changes. Ask for each of them in writing. A helpful answer in a call is not the same as a term in an agreement, and the gap tends to show up when work goes quiet or when a consultant stops.
On fees, ask directly what you pay in a month when a consultant does no work at all. Fee structures differ between providers, so do not assume a rule and do not rely on a figure you heard in a call. Ask how a person is put on hold and brought back, and what that does to your invoice. Get the answer in the contract before you sign.
Then agree how status is checked for each role, which countries a provider will and will not cover, notice and exit terms, and who owns the work produced. Your answer will depend on the countries, the roles and how often the work happens. Talk to an Expert at Teamed to work through yours.