Global Expansion Fuels the Need for Local Employment Law Knowledge
Many organisations, both British and multinational, are expanding their global reach by setting up operations abroad and sending ever-increasing numbers of workers overseas each year. Some employees are posted abroad for extended periods of time whilst others are based in the UK but spend much of their working time overseas. When employees work overseas, both employees’ and employers’ rights and responsibilities are affected by reference to UK law and to the laws of the country or countries in which they are working. HR professionals are finding they need to gain a comprehensive appreciation of key local employment law issues as well as vital knowledge of cultural differences to make sure they do not fall foul of local laws – and business culture.
Robin Chater, Secretary General of the Federation of European Employers, comments on the situation in Europe: "Because EU directives create a common legislative framework in some areas it is often assumed that country employment laws are largely harmonised. But nothing could be further from the truth and in some fields such as individual redundancy there is no underpinning directive. As there are few EU employment directives in the pipeline the centre of gravity has now moved onto the national stage with major experiments taking place such as tax-free overtime in France, the extension of working life and conversion of severance payments to pensions in Italy and Limosa job posting regulations in Belgium."
It is clear that doing business in different employment law jurisdictions can prove particularly problematic for HR professionals responsible for integrating cross-country operations in Europe. Dispute resolution procedures, redundancy rules, employment contracts and discrimination legislation differ, not only in Europe but across the world. Where UK legislation differentiates between ‘workers’ and ‘employees’, much of the current Indian employment legislation revolves around and applies to any person who is defined as a ‘workman’. And in most states in the US most employees are presumed ‘at will’, allowing both employee and employer to end the employment relationship at any time. In the UK however it is much more difficult to terminate an employee’s contract, particularly after the individual has been employed for over a year.
Navigating the legal minefield of international employment law jurisdictions is clearly a top priority for many HR professionals.
Vicky Weber
Manager - Public Courses, Seminars and Conferences
