So You’re Going Global! Five Employment Basics for U.S. Companies Expanding Overseas

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.

How Enforceable Are Mobility Clauses in French Employment Contracts? More Than You Might Imagine!

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.

At Will? What’s That?

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.