Companies planning to expand overseas have many considerations before hiring employees in a new country. Employment laws and statutory benefits vary from country to country, so it’s important to familiarize your team before you start hiring new talent or sending U.S. employees to a new country to begin operations. Here are some key considerations when hiring abroad:
Your Company Could be in Violation of Local Laws Without Realizing It
From working hours and wages to termination, many employers don’t understand their legal responsibilities due to inexperience or lack of research. As an employer, you need to know what constitutes a potential breach of in-country labor laws and potential repercussions that could arise from a violation. Awareness is the key to making sound hiring and termination decisions. Staying ahead of local labor requirements will help avoid fines and penalties for your organization.
Local In-Country Employment Laws Differ from U.S. Labor Law
Starting up in a new country can be daunting considering labor laws differ from the U.S. labor code. Employers that will be bringing U.S. employees to a new country to work must be aware of labor laws related to employing foreign nationals. Once your U.S. employee begins work in a new country, labor and employment laws specific to expatriates including minimum wage, working hours, benefits, and taxes will be required. It is important to understand how using expats vs. in-country talent will affect your HR practices.
Employment Laws Change Frequently
There are more than 30,000 labor law and regulatory changes around the world each year. Staying current with local employment laws in each country is challenging, and laws can change rapidly. You need a trusted source for HR compliance to provide updated information related to labor laws, regulations, and documents like employee agreements so you can ensure you meet the requirements in each country. Many companies use in-country attorneys or compliance experts who specialize in employment law to make sure the company is following the proper requirements in each country.
Hiring and working in a new country provides great opportunities and unique challenges for organizations. Familiarizing your team with the local in-country laws will save resources and reduce risk for fines due to non-compliance. As labor codes vary by country, and sometimes by region, it can be impossible to keep track of every change each year. To learn about our integrated global HR compliance services, click here