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Managing Cross-border employment disputes
The skills shortage in the UK is driving companies to employ qualified staff from overseas. 30% of UK businesses plan to recruit from outside the UK in order to expand their company. However, there are legal hurdles that must be dealt with and, in some situations, may be difficult to resolve.
Below, we explain why businesses may want to employ from abroad, some of the common disputes that can occur, how to prevent them and how they can be managed if they do arise. We will also outline the rights that cross-border workers have in UK.
Click on the links below to jump to that section:
The many reasons why businesses look overseas for some of their employees
Why legal issues may arise between businesses and their foreign employees
Disputes between employees and businesses can be prevented, and here’s how
More about what foreign employees should legally expect in the UK
Brexit has affected free movement in the EU, including the right to work
Here’s how our expert team can help you
We answer your frequently asked questions
Why do companies want to employ cross-border employees?
UK businesses look towards overseas for employees for several reasons. Foreign employees may have skills and qualifications that are not easily available in the UK.
Hiring employees from overseas can also help businesses expand their ability to do business in other countries, the foreign employees’ knowledge of languages and understanding of the culture considerably assists when trading cross-border. Foreign employees also can enrich the workplace, creating a greater understanding of the overseas market and introducing new practices into the workplace.
What are the common disputes that can occur between companies and their foreign employees, and how can they be solved?
Despite the various benefits of employing overseas employees, there are some problems that can be encountered, and disputes may arise. Language misunderstandings can lead to bad communication, and cultural differences can create unforeseen problems between UK and overseas employees.
Foreign employees will be used to working in a completely different environment which may cause friction and lead to contractual disputes. Before an offer of employment, the responsibilities, duties and expectations must be clear, and the contract is agreed upon between you and your employee. There could also be disputes on issues in connection with visas and immigration status; these matters should be dealt with effectively to prevent any legal dispute.
Make sure your HR department is fully aware of the legal requirements and arranges work permits and visas in advance. Your UK staff and management should be made aware of your new employee's culture and language to help them fit in easily. You should consider legal advice from a solicitor's firm that understands international employment law to make sure your foreign employee does not find that they are contravening laws relating to their status and ability to work in the UK.
How to prevent these disputes from occurring
Before any cross-border employees start, a contract should be drafted that outlines their rights as a foreign worker in both English and their native language. The contract should highlight all relevant information, such as their expected duration of employment, details of pay and applicable law. For instance, whilst they may have to follow the same statutory employment law as their British counterparts, there may be circumstances where they are subjected to the laws of their home country too.
It is also advised that you provide a relocation package as an employee benefit to help your new member of staff settle in. This package could include travel costs for the employee and their family, assistance with shipping possessions and assistance with temporary accommodation.
If you need assistance drafting up a contract relating to a foreign employee or translating your existing contract into your employee's native language, get in touch with our experienced international lawyers today.
What rights do cross-border employees have in the UK?
Foreign employees have the same rights as UK employees. The basic rights that employees expect include: a minimum wage that reflects their age, a payslip (which includes details such as income tax), the freedom to not attend the workplace if health and safety protection is compromised, the right to statutory sick pay and holiday allowance, as well as maternity benefits and the right not to be discriminated against.
UK employers must follow the law outlined in the Equality Act 2010. It is illegal to discriminate against anyone for certain aspects of their life, such as age, gender and race. These rights apply to your cross-border employees too, and businesses could face legal action if they are not adhered to.
How has Brexit affected the employment of staff from the EU in the UK?
There are a range of visas that employees can apply for to facilitate their ability to work in the UK. As an employer, you will also need to obtain a sponsorship licence. The UK has now introduced a points-based immigration system; applicants must achieve 70 points from a list of attributes which includes the offer of a job from an approved sponsor (20 points), speaking a required level of English (10 points) and a job in a shortage occupation (20 points).
The requirements should be discussed prior to the job offer. This way, you can ensure that the individual is legally able to work in the UK.
How Giambrone and Partners can help
Giambrone and Partners have considerable years of experience in dealing with cross-border employment issues. Our lawyers can provide guidance both before and after you engage foreign workers.
To find out more, or to book a consultation, please get in touch with us today.
Common Queries
What is cross-border employment?
Cross-border working occurs when an individual begins working for a business in one country whilst living in a different country.
Can you work remotely from another EU member state?
Most European Union countries allow foreign employees to work remotely, provided they have the appropriate work permits, with an addendum in their employment contract, which includes immigration notification.
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