There are several reasons why it is important to sign employment contracts with your employees in other countries. Employers in the U.S. should keep in mind that legal protections for workers are generally much stronger internationally than domestically. As a result, an employment contract in the country where you operate is often a mandatory requirement – your company may violate local laws in case of absence. Below is an introduction to some of the basic facts about international employment contracts with a simple guide to many of the most frequently asked questions. Of all the institutions active at the end of FY2020, only a few employed foreign contract workers, including 3 in Jordan, where we worked with Better Work and the World Bank to provide Syrian refugees with employment opportunities in the garment sector. An international employment contract is the legal statement and arbitrator between your company and your employees abroad. It contains all the important terms of the legal agreement between you and your employee. Items such as salary, benefits, leave entitlements, illness, termination, confidentiality requirements, notice period, and other important terms and conditions of employment are included.

An international employment contract is subject to the laws and regulations of the country in which your employee works. As such, it must fully comply with the labor laws and regulations of that country. For example, an employee hired in Australia needs an Australian employment contract. In the event of a dispute, the labour dispute is usually dealt with by the local courts of the country. Our supplier sustainability team verifies that our policies and standards are being met. Gap Inc.`s Foreign Contract Worker Policy states that “the facility will pay all fees and expenses payable to the host government to document FCW employment in the host country, including all levies, work permit fees, and work document renewal fees. The Facility may not at any time deduct wages, be subject to workers` fees or otherwise accept refunds to reimburse such expenses. The institution or recruitment agency may not collect a deposit or deposit with the FCW or withhold any part of the EARNINGS of the FCW at any time during their employment. “Migrant workers (or members of their families) may not be threatened with dismissal from the authorities in order to force them into employment or to prevent them from terminating their employment relationship voluntarily and without sanction at any time. In 2018, we conducted a risk assessment to better understand where foreign contract workers are employed in upstream facilities, particularly at the textile mill level, where we know foreign contract workers often predominate.

Details of our efforts to support foreign contract workers employed in textile factories in Taiwan can be found here. Rules for the Recruitment of Foreign Workers The amended Presidential Decree No. 20 of 2018 on the use of foreign workers was issued on March 29, 2018 and introduced several amendments related to the employment of foreign workers. Several government agencies are involved in granting foreign workers permission to work in the United States. First, employers must apply for certification from the U.S. Department of Labor. Below is a link to documents and forms. Once the application is certified/approved, the employer must apply for a visa from the U.S.

Citizen and Immigration Service. The approval of the Ministry of Labour does not guarantee the issuance of visas. Applicants must also prove that they are eligible under foreign labor certification regulations in the United States – Foreign labor certification programs are generally designed to ensure that allowing foreign workers to work permanently or temporarily in the United States does not affect the employment opportunities, wages, and working conditions of U.S. workers. Unfortunately, it is not possible to have a single contract that covers each of your foreign employees. Each country has its own labor laws and jurisdictions, so a different contract is required for each. In some countries, more than one contract is required. For example, in Canada, it is advisable to have a contract for each province.

The situations of expatriate employees should be dealt with on a case-by-case basis. As a general rule, if your expat is employed outside the United States and in a non-American country. It is likely that they will need an international employment contract. In addition, as part of our Supplier Code of Conduct, Gap Inc. requires suppliers to enter into direct contracts and employment agreements with all contract workers to protect the rights of vulnerable workers. Although very few factories in our supply chain use contract workers, this policy exists, so our suppliers have a direct relationship with contract workers and not just with their recruitment agencies. The section of our COV that lists our requirements for foreign contract workers can be found here. If your expat remains on the U.S. payroll and is employed by a U.S. company, the position can be more complicated and requires an analysis of the situation. Keep in mind that international employment contracts may also be mandatory for work permit reasons. The contract is the final guide for the unfortunate case where you have a dispute with an international employee.

If there is a compliant local contract between your company and an employee, any agreement with your employee is subject to the terms of the contract. If you don`t have an employment contract, your exposure is much more uncertain. If your employee dispute is resolved by local courts or arbitration, the issuing authority will refer to local labor laws and practices and may simply ignore your own company`s internal policies. If your company is moving to a new country, employment contracts are one of the most important issues to consider. This is especially important for U.S. companies where employment contracts are neither mandatory nor as common as in other countries. However, they are crucial overseas – and your business expansion will likely be delayed if you don`t plan ahead. In cases where it has been established that the placement fees have been paid by the employees, we require and verify that the workers concerned are reimbursed. In cases where a local contractor or recruiter may be involved in the recruitment of migrant domestic workers, the costs are borne by the employer and not by the employee. As described in our Supplier Code of Conduct, the fundamental rights and freedoms enshrined in the International Labour Organization`s Declaration on Fundamental Principles and Rights at Work must be respected by entities that hire or employ foreign contract workers.

Gap Inc. states that entities that hire or employ foreign contract workers (FCWs) must ensure that these workers are treated fairly and on an equal footing with their local workers. Migrant workers must not be subjected to any form of forced, compulsory servitude for debts or debts. All work must be voluntary and workers must have the freedom to terminate their employment relationship at any time without penalty. In addition, our approach to foreign contract workers and the reimbursement of placement fees and related costs is consistent with Impactt`s standards for the reimbursement of migrant worker placement fees. While our own recruitment fee policy is already compliant with Impactt`s standards, we are now exploring how we can support their adoption in our industry. It is unlikely that your current HR staff will be able to prepare an international employment contract. In order to fully comply with international labour rules and regulations, the contract must be drafted by a locally qualified specialist. Global payroll issues can arise if payroll doesn`t have a good international employment contract to rely on, or if global payroll doesn`t review an international employment contract. The most common errors include inaccuracies and omissions. Here are some of the problems that employment contracts can prevent: The good news is that getting an employment contract isn`t as difficult or expensive as you might think.

Unless your requirements are very unique, you can hire a local labor law specialist who has experience drafting employment contracts in the country for international companies. This will be fully compliant locally and much more profitable than a partner/director of a global law firm. A good consultant usually starts with a model approach to reduce costs and save time. This type of approach starts with a locally compliant employment contract and allows you to modify only the elements specific to your needs. .