Legal Hurdles in Global Employment

Once a company begins to expand globally, its employment compliance challenges become far more challenging. Model agreements that are used across the U.S. workforce locations are not a fit for the global teams. Employment abroad comes with many questions, and if implemented incorrectly, with serious penalties.

The legal department must work closely with HR. Legal needs to know when HR is looking to make an international hire so the legal team can start looking at potential issues and obtain local expertise, before an offer has been extended. Once you are aware that your company intends to hire, your next step is to get baseline information about the relevant employment laws. Many HR professionals and some employment lawyers belong to the Society of Human Resource Management, which has a section on its site dedicated to global HR. There are numerous other sources, as well.

You also will need to find in-country accountants and lawyers who can provide information about banking requirements, relevant employment laws, and tax and accounting obligations.

If you are considering employment outsourcing, it’s essential to do your homework. In a number of countries, including Germany, Switzerland and Ireland, licenses are required for employee secondment or labor leasing.

It takes preparation, open communications between HR and legal, and trusted partners who understand the complexities of the business and local requirements, to guide a company smoothly through international expansion.