The Netherlands is one of the few places in the world where dismissing an employee requires prior authorization from the government (unless it is done summarily for urgent cause).
Have you heard of the “fake president” fraud? Despite the name, it has nothing to do with politics; it is a worldwide financial scam that has affected hundreds of multinational companies, especially companies in Europe.
When Emmanuel Macron was campaigning, he said that if elected, he would revise French employment laws. It looks like President Macron will act on his promise.
Your company is doing well in the United States, and you are looking to expand internationally. That can be a very exciting time! But besides the practical logistics (e.g., Do I need to set up a subsidiary to hire someone overseas?), what fundamentals do you need to know before you take on an employee in another country? Once you grasp the basic differences between dealing with U.S.- and non-U.S. employees, you will foster smoother employee-employer relationships and prevent unexpected hits to your bottom line. Following are five points to consider as you hire and manage employees in other countries.
Have you heard about the new “right to disconnect” law in France that has finally come into effect on January 1, 2017? Don’t believe all the hype!
It seems that the Cour de Cassation (France’s equivalent to the Supreme Court of the United States) occasionally throws employers a bone when determining their rights to make management decisions regarding their workforces. The Cour has recently confirmed that not only can French employees be dismissed for refusing a transfer when they have a valid mobility clause in their employment contracts, but they can be dismissed without the notice indemnity if they refuse to serve out their termination notice period in the new location.
France is world-renowned for its protection of employees against adverse employer actions, particularly unilateral terminations. Like virtually all other countries outside the United States, France does not recognize at-will employment, and French employers may not fire employees without justification that meets a stringent standard.
In structuring their workforces abroad, taxes are a major driving force for employers—and if recent government initiatives are any indicator, employers should take care when considering the tax implications of their staffing decisions.
Did you know that employees in most countries outside the United States have a contractual right to continued employment, whether or not they have written contract? If an employer does not provide an employee with a written contract, rights will be implied at law to the advantage of the employee and disadvantage of the employer. In some countries, employers are required by law to provide employees with written contracts or they can be penalized. American employers often do not realize that offer letters—no matter how much “at-will” language is included in them—may constitute employment contracts, albeit without all the bells and whistles that should be included to protect the company. Moreover, once an offer letter is signed, it may be too late to make changes.
In France, a valid noncompete clause in an employment contract must provide for the payment of financial compensation to the departing employee, as long as the employee remains bound by and complies with the clause’s terms and conditions. But when must the payment of compensation commence? Earlier, perhaps, than you might have thought.
You know that sinking feeling: you have a new employee in France who is not working out, and the manager has left it until the last minute to let you know. What happens if the required termination notice period will now extend beyond the end of the employee’s trial period? Does that…..