1. How many countries allow “at will” employment?
15, 10, 5, 1, 0
ANSWER: The answer is 1. The concept of “at-will” employment is unique to only the United States.
2. Having cause gives an employer justification to terminate without severance:
ANSWER: False. Even if an employer has cause, the company will likely be on the hook for severance payments.
3. Severance and payment in lieu of notice are the same thing:
ANSWER: 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.
4. In many countries, non-compete contracts are:
– Valid, but difficult to enforce
– Illegal and should never be used
– Seen as invalid and unenforceable
ANSWER: Valid, but difficult to enforce, and employers
5. 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
ANSWER: All of the above.
6. Employee severance outside of the U.S. is typically NOT based on:
Company, Age, Length of Services, Title
ANSWER: Company. Age, title, and length of service are key determining factors when it comes to severance outside of the United States.
7. Employee probationary periods…
– allow employers to exercise an “at will” employment period in the contract
– are no longer typical in international employment
– must be approved by the local employee, if offered
ANSWER: This time period is the closest an employee outside of the United States can get to being considered an “at-will” employee.
8. The first step you should take before initiating a termination of an employee is:
– determine termination pay out
– determine if you have cause
– review the employment contract
– contact local counsel
– provide the required mandatory notice
ANSWER: 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.
9. 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
ANSWER: All of the above