No longer is the global market reserved for large-scale multinational corporations with thousands of employees. Even companies with fewer than 1,000 or 500 employees are expanding globally. According to the U.S. Department of Commerce, exports by small and medium-size businesses totaled $440.1 billion in 2011, which represents 33 percent of total U.S. exports. These companies are creating sales teams in countries such as Brazil, Australia, China and Mexico. With these obligations, corporate counsel have an enormous responsibility to navigate complicated and often voluminous international legislation.
Common Compliance Issues
U.S. employers are most familiar with the employment-at-will system. Essentially, this allows employers to discharge employees without notice and with or without any reason, as long as the reason does not violate the law, a contract or public policy. Employees outside of the U.S. generally have greater rights by contract, statute and/or common law. International employment relationships are usually contractual—whether written, oral, express or implied—and the terms are based for the most part on minimum standards imposed by applicable legislation of the jurisdiction. These contractual obligations reach all aspects of employment, including hiring, compensation and benefits, ongoing employment relationships and separation (both voluntary and involuntary). You must consider them all when hiring abroad.
