General Principles of Labor Law
Basics
In this section, we will help you understand international work arrangements from a Labor Law Compliance perspective and show you how to navigate this complex landscape based on the following roadmaps and checklists:
Which Labor Law Rules apply to the Employment?
Checklists:
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Employment contract
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Employer
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Involved countries
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Applicable regime(s)
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Prevailing rules
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Compliance file
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Flowchart
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Verification
In practice, the impact of labor law on cross-border work deployment is often underestimated. Many assume that cross-border workers always fall under the home country's regime. However, when multiple countries are involved, multiple regimes apply simultaneously in principle.
This raises a critical question: which rules prevail when various regimes apply?
The answer is critical for ensuring regulatory compliance, safeguarding both employer and employee rights, and accurately forecasting the employment cost.
Preparing the Legal Paperwork
Checklists:
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The assignment agreement
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Pre-assignment phase
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On-assignment phase
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Post-assignment phase
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The Global Mobility Policy
After determining the mobility scenario and the construction, the next critical step is developing the legal framework: legally binding agreements that clearly establish the terms and conditions that govern the employment.
The nature of the documents required varies significantly based on the chosen scenario.
In this step, you will find some building blocks for setting up a solid legal framework.
Special Attention: EU Posting of Workers
The EU's Freedom to Provide Services enables companies to offer services across member states, allowing them to send employees to perform tasks there without extensive immigration procedures. Nevertheless, employers must comply with specific requirements outlined in the EU Posted Workers Directives (PWD).
The PWD presents a complex legal framework, designed to balance economic freedom with robust worker protection across 27 diverse member states. This intricate balance is necessary given each country's unique immigration , labor laws, wage standards, and social systems.
Given the complexity of the PWD Regime, the Navigator created a Profile dedicated to the EU Posted Worker, encompassing the relevant disciplines, including labor Law.
Special Focus on International Labor Disputes
A labor dispute can pose significant risks to both employers and employees. In an international context, these risks are substantially magnified, often having severe implications across multiple jurisdictions. Such disputes can lead to substantial financial liabilities, operational disruptions, reputational damage, and complex legal entanglements that may persist across different legal systems for years.
In this section, you will discover essential strategies and legal considerations for effectively navigating the high stakes of workplace conflicts with international employees.
Special Focus on the Duty of Care
The Duty of Care is the obligation requiring individuals and organizations to act prudently toward others to prevent foreseeable injury. It is mandated by legislation, common law, and societal expectations. Breaches can result in negligence claims, reputational damages, and criminal prosecution.
Cross-border work situations present heightened health, safety, and security risks. Here, the Duty of Care extends beyond home country requirements and necessitates enhanced protective measures.
This section explores essential building blocks for implementing effective strategic risk management frameworks and developing a robust Duty of Care policy.
Key Tips for Success
1. Secure Expert Guidance
The Navigator serves as a tool for understanding the complexities of Global Mobility. While comprehensive, it cannot address every practical situation or legal nuance and must never replace official documentation or professional consultation.
Each situation requires tailored guidance based on specific circumstances. We strongly recommend consulting qualified experts in all relevant countries before making decisions. Use the Navigator as a guideline to navigate the various subjects you'll encounter and as a framework for developing questions when meeting with your advisers.
2. Maintain Vigilant Oversight
Even minor changes in international work arrangements can have significant legal and financial consequences. Protect all parties by implementing these three critical practices:
- Document all work terms and conditions comprehensively at the outset
- Monitor actual working conditions and circumstances regularly
- Respond promptly to any changes in the work arrangement.