International Terminations Quiz Results

Making an international hire isn’t easy. What you don’t know can come back to haunt you.

Review the result of the quiz below.  If you need more information contact our dedicated team of Global Employment experts who are ready to help.

 

How many countries allow “at will” employment?

  • 15
  • 10
  • 5
  • 1
  • 0

The answer is 1. The concept of “at-will” employment is unique to only the United States.

 

Having cause gives an employer justification to terminate without severance:

  • True
  • False

False. Even if an employer has cause, the company will likely be on the hook for severance payments.

 

Severance and payment in lieu of notice are the same thing:

  • True
  • False

False. Severance is separate and calculated differently. Often, a company must pay both, especially if the employer would like to forgo a mandatory notice period.

 

In many countries, non-compete contracts are:

  • Valid, but difficult to enforce
  • Seen as invalid and unenforceable
  • Illegal and should never be used

In most countries in the world – including in the United States – non-compete contracts may have to be litigated to determine validity.

 

Immediately upon termination employers are required, in most countries, to pay:

  • Accrued salary, vacation and any bonuses
  • Long term service severance
  • Mandatory severance
  • Termination in lieu of notice
  • All of the above

 

Employee severance outside of the U.S. is typically NOT based on:

  • Company
  • Age
  • Title
  • Length of Services

Age, title, and length of service are key determining factors when it comes to severance outside of the United States.

 

Employee probationary periods

  • Are no longer typical in international employment
  • Must be approved by the local employee, if offered
  • Allow employers to exercise an “at will” employment period in the contract

This time period is the closest an employee outside of the United States can get to being considered an “at-will” employee.

 

The first step you should take before initiating a termination of an employee is:

  • Determine if you have cause
  • Review the employment contract
  • Provide the required mandatory notice
  • Determine termination pay out
  • Contact local counsel

Always review the contract before you do anything else. Much, if not all, of what you’d need to know is in the employment contract.

 

Using a Global Professional Employer of Record:

  • Minimizes the risk by putting employees on a locally compliant payroll
  • Minimizes the complications of terminating a local employee by proactively addressing requirements and accruing mandatory severance
  • Shortens the time to hire from months to days and reduces the HR burden
  • Ensures compliance and a happy employee
  • All of the above
Do you have a pressing question about hiring and firing overseas? Talk to us.


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