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You’re expanding to new countries—that's certainly worthy of big congratulations. But before you can celebrate, there are some crucial HR details that need to be ironed out. Namely, figuring out the rules and regulations associated with global hiring and international employment contracts in your new markets.
Between employment laws in the U.S., employment laws in the countries you’re expanding to, and your own company’s policies, there is a lot to get right. And there can be high stakes if you get it wrong.
Here are the basics of creating a compliant international employment contact and common pitfalls to avoid during the process.
What is an international employment contract?
According to the Global Payment Management Institute, an international employment contract is “the legal statement of record and arbiter between your business and your employees in overseas locations.”
In other words, this contract is the document that outlines all the key details of the relationship between you and your international employee, including things like:
Duration of the position/length of employment