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Security and Competitiveness of International Employment Contracts


Every nation defines how employment terms are established, formalized and implemented. Since there is no a unique international status recognized for international employment, companies and their international employees are faced with a triple obligation when an international assignment is decided :

- Compliance : awareness and integration of all applicable regulations
- Usefulness : Defining the principles that reflect the real terms and conditions
- Optimization : Choosing the best conditions for the company and the employee

This situation makes impossible to draft boiler-plate contracts. If indeed certain formats are easily defined, these contracts must be updated on a regular basis.

Intelfi endeavors to maintain a bilateral parallel framework between the supporting documents and the reality of how employment contracts are executed.

Intelfi offers more security, prevents differences of interpretation, promotes the competitiveness of employment policies and international compensation and helps limit the risks involved and their impact to the company's finances and accounting records.

Analyze : the terms "transfer" or "mobility" are often used, without realizing that their meaning is defined by each country regulations.

Other terms are used, such as "relocation," and "letter of assignment," that actually deal with varying circumstances depending on the company and work environment.

Intelfi assists its clients in describing the real conditions of a transfer abroad before providing an accurate legal analysis and drafting a faithful agreement.

Deciding : A lot of ambiguity exists between equalizing and neutralizing taxation systems, determining applicable laws and competent jurisdictions, the company obligations and policy objectives that are applicable upon the employee's return to headquarters, the health and pensions payments made during the assignment abroad or for a limited period during the relocation, there is much ambiguity. Unfortunately, the consequences are oftentimes only be measured when it is too late.

Intelfi works out several accounting scenarios, evaluates the advantages and determines the costs and benefits.

Instead of discussing a certain statute or clause, Intelfi assists the company and its international employees to reach their decision based on concrete facts and figures. Intelfi saves time, provides ongoing solutions, and guarantees a high level of reliability.

To guarantee the security and competitiveness of international employment contracts, Intelfi actively participates and coordinates the following aspects:

▪ Contracts, agreements, existing attachments, evaluation of company practices

▪ Rules that are applicable to the particular relocation and for the number of countries involved

▪ Definition of applicable law

▪ Territorial scope, collective bargaining, professional agreements

▪ Trial period

▪ Duration of the contract

▪ Remuneration and compensation package related to the transfer and health and retirement   contributions

▪ Principles and estimates to neutralize or level out the taxation systems

▪ The currency and country where remuneration and other benefits will be paid

▪ Incentives for international assignments

▪ Monetary and in-kind benefits

▪ Employee's return home, obligations and implementation

▪ Competent jurisdiction

International employment contract must be prepared and drafted on a case by case basis. Each element must faithfully and solidly reflect reality and explicitly respond to the regulations in effect in the country in question. They must evaluate figures, include a consideration in terms of opportunity, and finally, they must be negotiated.

By providing a realistic vision, Intelfi makes it easier for companies and international employees to reach a decision, leading to faster, more efficient negotiations. At the crucial juncture prior to an employ assuming their new duties abroad, the level of trust between all parties is higher.

In an obstacle course that depends on the existence of an ongoing and fruitful relationship between the company and its international employee, and even beyond the employee's return to the original country, Intelfi provides a concrete approach that provides more clarity, security, and quality.
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Conception et creation: Julien Preszburger