Cross-Border Employment Law


Cross-Border Employment Law

Organizations with multinational growth strategies face challenging considerations when it comes to their global workforce.

Complex polices, frequent legislative changes and global operations make managing employee relations and compliance with various employment laws challenging for businesses.
Compliance in each country is its own challenge. Compliance in numerous countries simultaneously can be a tangled web that slows growth and increases risks liability for the organization.

Starting with our comprehensive knowledge of and experience with complex employment regulations around the world, we work with international employers to help them understand and navigate through the relevant legal framework in each jurisdiction. Deloitte Legal assists businesses with all (legal) aspects of cross-border employment issues. By doing so, we work closely together with our international colleagues (in > 80 countries), our tax and immigration colleagues and our Human Capital consultants.

We offer the following services relating to cross-border employment law:

  • Cross-Jurisdiction HR Services
  • Business Transformation, Restructuring and Dismissal
  • Workforce Flexibility
  • Cross border Employee Assignments

Cross-Jurisdiction HR Services

Organizations with employees across the globe face numerous legal systems they must comply with. Whether it has a small payroll or sales office in a country or a big and mature company. Therefore these organizations should have decent knowledge of the key issues in each jurisdiction where they operate. These key issues include:

  • Employment agreements, policies and handbooks
  • Hiring and firing
  • Working time and payroll compliance
  • Salaries, benefits and collective labor agreements
  • Works councils 
  • Health and safety requirements.

We can assist you in all these topics, either in a specific jurisdiction but also in cross-border projects where we can help you to come to an integral and multi-jurisdiction approach. When doing so, we combine legal knowledge with technical expertise and project management skills.

Business Transformation, Restructuring and Dismissal

We lead our clients through the whole process of any type of business transformation, such as mergers & acquisitions, insourcing & outsourcing of activities, simplification of legal structures of the group, closures and collective dismissals, re-location, the establishment of a shared service centre, and so on. Our assistance includes:

  • Development of a communication strategy towards employees, consulting bodies and stakeholders
  • Project planning and coordination
  • Development of a contingency plan to ensure continuation of service delivery
  • Harmonisation of salary and working conditions
  • Social due diligence to avoid any unpleasant surprises after purchase
  • Individual & collective dismissal (national and international)
  • Fulfilling of all necessary formalities, including application for social security certificates and compulsory notifications
  • Consultations with works councils and trade unions
  • Drafting of collective bargaining agreements, addenda to employment agreements, letters to the authorities, social plans etc.

We closely collaborate with our corporate law and commercial law specialists and take a multi-disciplinary approach to ensure the operation is looked at from all angles (tax, business strategy, human capital).

Workforce Flexibility

From strategic hires to administrative posts, around the globe organizations are making use of a diversity of contingent workers to meet their business needs. Think of agency workers, payroll employees, freelancers and independent contractors. The concept of contingent workforce management is being reshaped by the gig economy(networks of people who make a living working as freelancers), the increased use of machines as talent as well as by new forms of working, such as microwork and crowdsourcing. The steady growth of the contingent workforce, the new forms of work and the impact in cross-border situations, lead to organizations having to deal with new challenges, such as:

  • Talent strategy
  • Strategic workforce planning
  • Sourcing and procurement
  • Technology strategy
  • Workforce management
  • Tax and legal constraints.

Together with our colleagues from tax and consulting, we help organizations to tackle these challenges. We show the impact of employment laws on contingent workforce and help to come to a strategy on how to deal with this and how to mitigate risks. This includes tax, social security, pension and immigration aspects.

Cross border Employee Assignments

Nowadays companies need a global workforce, and global mobility, more than ever. They are sending an increasing number of people abroad, in a wider variety of roles, for many reasons: to prepare for and respond to opportunities in the market; to secure company values, culture and policies, to promote research, development, and innovation; and to contribute to talent experience.

Companies who are sourcing individuals for global assignments will inevitably face challenges, which include:

  • Compliance requirements – despite a specific choice of law, organizations may need to take into account local employment laws as well
  • Amending the home employment agreement in connection with the international assignment
  • Drafting documentation regarding additional or different employment package to apply during the assignment
  • Immigration obligations.

In addition, EU employers today face important obligations and liabilities in most EU Member States with respect to international assignees and business travelers.
Since June 2016, the legislation mandated by the Posted Workers Enforcement Directive has led to strict practical and administrative requirements being imposed on employers: the duty to notify, the appointment of a contact person, the obligation to provide information on the posting and the retentions of certain employment documents. The WagwEU is the Dutch implementation of the Posted Workers (Enforcement) Directive.

These employer obligations are increasingly under the spotlight, with greater scrutiny and strict penalties being imposed for compliance failures.
Deloitte can support you with the requirements applicable in all EU member states.

We can help you to:

  • Check what obligations apply in each specific posting situation
  • Assess what employment conditions to apply
  • Assist with the administrative requirements, such as with regard to the notification

The way we work

Our services are scalable to the needs of each client.
Whether it’s one-off guidance on the clients responsibilities in a particular jurisdiction, a yearly compliance review or day-to-day support in each country where a multinational operates, Deloitte Legal will add value, including:

  1. Compliance and clarity—Our services emphasize local insights and experience around the world connected by a global perspective. 
  2. Consistency and efficiency—Our dedicated client-service teams deploy forward-looking technologies, models, templates, and tools tuned to each client’s needs.
  3. Guidance and practical insight—We earned our perspective by investing in, supporting, and connecting local experts around the world. That means our teams are highly qualified and ready to help you achieve your long-term vision.

More Information?

For more information on Employment Law please contact Fraukje Panis or Anne-Marie van den Belt.

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