The risk of “misclassification” where an independent contractor sues to be classified as an employee, or where some labor or tax authority takes legal action to

The risk of “misclassification” where an independent contractor sues to be classified as an employee, or where some labor or tax authority takes legal action to have a contractor reclassified (with or without the consent of the contractor/employee) exists in basically every jurisdiction. The only thing that changes if you move your contractors overseas is the jurisdiction where that dispute will be heard, because it will happen in the jurisdiction where the contractor/employee is located. Even if you put aside the mischaracterisation risks, each jurisdiction is likely to have different worker safety, entitlements, tax… obligations, even for contractors. If any disputes arise relating to those, they’re also going to be heard in the jurisdiction of the contractor/employee. I can understand where your misunderstanding comes from, thinking they’re all just businesses providing services to other businesses. But this interpretation is very naive, and the legal reality is massively more complicated than you’re making it sound. Governments really don’t like independent contractors, they’re subject to far more restrictions than ordinary businesses, and companies employing their services are usually exposed to risks that they don’t have when dealing with ordinary businesses.