International Employment and Labor Law

Expanding to other jurisdictions has numerous benefits. However, when hiring abroad, it is crucial to ensure compliance with all relevant local employment and labor laws.

If you are new to this field, it can be challenging to know where to begin. For example, you must be aware of certain areas of legislation and how they differ between countries.

Employment and labor laws and regulations protect the rights and responsibilities of those in the workplace. When you hire someone in a different country, you must comply with that country's employment and labor laws.

Employees in one country may be subject to different overtime, minimum wage, and paid time off rules than employees in another country. If your business fails to recognize these differences and comply with the applicable local laws and regulations, it could face problems.

The consequences for violating employment and labor laws can differ significantly depending on the country, the severity, and the extent of the violation. However, potential penalties may include substantial fines, damage to reputation and, in certain instances, restrictions on conducting business. Therefore, it is crucial to follow these laws.

International employment law is a multifaceted field. Comprehensive contractual drafting, procedural fairness and careful consideration of the nuances between the laws of different jurisdictions are crucial.

Every country has its own employment and labor laws and a relevant government department that enforces them. Your business will need to become acquainted with those laws for each country you hire in, as they can differ significantly.

In some locations, you may also need to disclose to your employees the types of personal information you collect from them and why and when you are collecting it. This may apply to any personally identifiable information your company keeps on its employees.

This type of legislation typically focuses on employment and labor in the same key areas:

1. Minimum wage;

2. Overtime;

3. Statutory (required by law) and supplementary (at the discretion of employer) benefits;

4. Privacy and data security;

5. Discrimination;

6. Sick or parental leave;

7. Paid time off; and

8. Rest periods and breaks.

Privacy and data security are critically important in international employment law. Suppose you monitor your remote employees to ensure they are effectively using their working hours. In that case, you must do so in accordance with the laws of the particular jurisdiction you monitor in. In the US, several states—including California—require employers to inform their employees about electronic monitoring.

In certain jurisdictions, you may also be required to inform your employees about the specific types of personal information you gather and the reasons for and timing of the data collection. This can be relevant to any personally identifiable information that your company retains.

We draft and review employee privacy policies and advise corporations on, among other things, the application of privacy laws, privacy issues related to searching employees and their property, and the collection of biometric information.

Many jurisdictions have laws against discrimination to protect employees. These laws differ from jurisdiction to jurisdiction and prevent organizations from discriminating based on age, race, disability, sex, religion and other factors.

Most jurisdictions require protected sick leave in some form, although it is not always paid. Understanding the legal obligations in each jurisdiction where you have employees is crucial, as the differences between jurisdictions can be wide-ranging.

For example, some jurisdictions may entitle employees to several weeks or months of paid sick or parental leave, while others do not offer any or very little paid leave.

When hiring employees internationally, it is important to be aware of the laws related to permanent establishment. Suppose your business has a continuous presence in a particular jurisdiction. In that case, that jurisdiction’s authorities may consider the business permanently established there, rendering it liable for taxes and other obligations brought about by being permanently established in a jurisdiction. Avoiding this risk can be difficult, especially if a business has employees in multiple markets, as each country has its own laws. Further, actions taken to avoid permanent establishment in one country might not avoid it in another.

We prepare and review employee handbooks, employer policies and rules, offer letters, employment contracts, non-compete agreements, non-solicitation agreements, and intellectual property protection arrangements. We also prepare international assignment and transfer structure documentation and other documents.

At Kramer International Law, our international employment law practice is run by someone who is a lawyer in multiple nations, not by domestic lawyers who dabble in international work. In our opinion, that makes a world of difference.