It takes the complexity of international hiring (vs contracting) and raises it up a notch. Your home country like the US doesn't care (afaict) but the country they are in will have extra levels of compliance to go through, including labor protections & equity laws. Likewise, if you were planning to use an EOR to simplify foreign registrations, that just got weirder too.

And.... IANAL, we pay people to figure this stuff out or stay away from it.