> there are no legal restrictions on what country a remote employee must be in
Working remotely from another country is easy. Paying somebody in another country is not easy at all. Even with specialized providers it is a substantial hassle. Without it you pretty much better give up - the chances you get all the payments, taxes and paperwork right is minimal, and that country's tax/regulatory authorities would be more than happy to fine you and/or your workers if you don't. In the best case, in worse case they might just seize your money intended for payroll and keep it until you figure things out.
Working remotely from another country is easy. Paying somebody in another country is not easy at all. Even with specialized providers it is a substantial hassle. Without it you pretty much better give up - the chances you get all the payments, taxes and paperwork right is minimal, and that country's tax/regulatory authorities would be more than happy to fine you and/or your workers if you don't. In the best case, in worse case they might just seize your money intended for payroll and keep it until you figure things out.