Employer in general

An employer is a person or organization that enters into an employment contract that bears these characteristics:

1. Labor: the employee is required to carry out work, regardless of the scope or duration of the work;

2. Exclusivity: the employee must personally perform the work and cannot assign someone else to do it without the employer's consent;

3. Wages/ salary: the employer must provide wages in the form of money and/or benefits, such as housing or school fees;

4. Authority: there exists an authority relationship between the employer and the employee, where the employer can oversee the work, issue instructions, hold the employee accountable, and terminate the agreement.

When an employer send an employee on an international assignment often multiple legal entities get involved, which can result in the transfer of employer responsibilities between them, whether intentional or unintentional. We then distinguish:

1. The formal employer is the entity that enters into an employment contract with the employee, as evidenced by the contract signing.

2. The material employer is the entity that oversees the employee's daily activities, provides instructions, evaluates performance, and enforces accountability, establishing an authoritative relationship.

3. The economic employer is the entity that benefits financially from the employee's work, assuming both the advantages and disadvantages, including expenses like wages, whether directly or indirectly.