Assume you are working for a mid-size company that is looking to go internationa

Question

Assume you are working for a mid-size company that is looking to go international. Choose one aspect of employment law from your country of origin* and choose another country where your company is planning its new expansion. Compare and contrast the chosen law (or set of laws) between the two countries.

Write an International Corporate Employment Policy on the subject of your choice. Include an explanation of the additional steps needed before actual implementation.

If you’re in the United States: Choose a country and compare and contrast an aspect of U.S. employment law with that Country’s employment law. If you’re outside of the United States: Compare and contrast an aspect of U.S. employment law with your Country of Origin.

Explanation / Answer

?1. Employment Contract

In the United States labor laws, there is no requirement for an explicit contract of employment. Most employment is on an at-will basis, meaning that the employer or the employee can terminate the working relationship at any time, as long as the reasons are lawful.

In Europe, the employment contract, derived from common law, is the basis of all employer-employee relations. Employment-at-will doctrine does not apply, notes High Street Partners, a leading international business service provider; the employer is required to follow due process in terminating an employee; if he fails to do so, he can be liable for wrongful termination.

Wrongful Termination

American federal laws and the U.S. Fair Labor Standards Act do not require that employers notify their employees before termination. An employer can terminate the working relationship for any reason other than discrimination, retaliation, defamation, breach of explicit contract or fraud. According to the HG Global Legal Resources, just because an employee feels he has been treated unfairly, he may not be able to claim wrongful termination.

Under European labor laws, an employee can claim wrongful dismissal or termination if the employer breaches the employment contract. For example, if the employer dismisses the employee without any notice or fails to follow disciplinary measures as stipulated in the contract before dismissal, the employee could claim wrongful termination.

2. Drafting and implementing a Global Code of Conduct

The Global Code of Conduct ("Code") is your opportunity to make it clear to your company's employees and stakeholders how the organization intends to do business. For an international business working across different cultures in different languages this is both particularly important and challenging. You will need to assemble a strong team from across the business to assist in the drafting, roll out and monitoring of compliance with the Code.

Most Codes begin with a statement of the company's mission and core values. But deciding what particular subjects to cover in your Code can be difficult. The trick is to strike the right balance between producing a huge document that covers every possible base but runs the risk of not being read and producing a short, snappy Code that does not really communicate enough and leaves you exposed in a number of areas.

The main body of the Code should contain sections that address the organization's and employees' relationships with the following groups:

Following key areas should be considered while drafting:

The Code is your key ethics communication with the business but when considering the above potential areas, think about which you can feasibly cover globally and which you will have to keep fairly broad brush. For example, labour and employment rules vary hugely from country to country so don't get too granular when looking at this. A global code of conduct should be less about how employees act with regard to the laws of their local jurisdiction or country and more about the value system that the global company as a whole uses.

Implementation

While the drafting of the Code has it challenges, it is with the roll out, training and evaluation of the Code's effectiveness that the work really begins. Setting the tone from the top is essential. Many multinationals circulate their Code with a letter from the CEO to give it more impact.

They then ensure that all heads of lines of business and local senior managers are prepared to reinforce the message.Many global codes of conduct end with a page for employees to sign, acknowledging that they have read, understood and agree to follow the Code.But global employee acknowledgements raise a number of logistical problems. Some of these can be mitigated by adopting a form of electronic acknowledgment.

Finally monitoring and keeping it up-to-date is critical.

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