CONVINUS Global Mobility
CONVINUS Global Mobility Insights - Frühling / Spring 2025 For example, the so-called Lugano Convention, to which all EU states and Switzerland belong, coordinates international jurisdiction between the contracting states. In addition, depending on the country, various other mandatory legal provisions must be observed, which are motivated by police, religious or moral considerations. In Saudi Arabia, for example, it is forbidden to drink alcohol, wear religious insignia or go out in public as a woman without a headscarf. Failure to comply with such regulations usually results in draconian penalties, ranging from expulsion from the country to imprisonment and corporal punishment. This complex initial situation can make international employee deployment seem like a nightmare and a closed book. Solution approaches However, if you are aware of these dangers, the spectre becomes less and less frightening and with structured planning, even the seven seals can be opened. As a first step, it is important that the international employee assignment is not an end in itself , but rather that the purpose of the assignment is placed in the foreground and the international employee assignment is organised accordingly. In order for this to be implemented, it is first necessary to familiarise oneself with the possible constellations of international employee deployment. Constellations of international employee deployment A fundamental distinction must be made here between temporary assignments abroad, permanent assignments abroad and, finally, the recruitment of local staff abroad. Recruitment of local staff The last mentioned constellation, the recruitment of local staff, is usually forgotten, although it is basically the cheapest and the easiest to implement. In contrast to the first two constellations mentioned, in this constellation the employee is not transferred from one country to another, but the employee is already working locally in the foreign company and is now entrusted with a new or additional task (the purpose of the international employee assignment), or the 48
CONVINUS Global Mobility Insights - Frühling / Spring 2025 employee is recruited locally abroad as a new employee for this purpose. This employee is employed locally under foreign law with an employment contract and remains subject to the local social security system. There will also be no special problems in terms of residence and tax law, as this is not an international situation with points of contact to other legal systems. This means that only one legal system, namely that of the foreign place of employment, must be observed. Nevertheless, the domestic company will be able to issue instructions to this foreign employee and thus realise the intended purpose. The basis for this right to issue instructions may be a corresponding additional provision in the local employment contract or, for example, a group-wide authorisation regulation. Differentiation between fixed-term and indefinite assignments abroad If the purpose of the international employee assignment requires a domestic employee to work abroad for a domestic company, a distinction must be made between a temporary and an indefinite foreign assignment depending on the expected duration of the foreign assignment. For legal reasons, the time limit between the temporary and permanent assignment abroad should be set at 5 years. Most social security agreements, including the Agreement on the Free Movement of Persons, provide for the possibility of making posted employees subject to the social security system of the country from which they were posted for a maximum of five years and exempting them from compulsory social security in the country of posting during this period. In international private law too, temporary assignments abroad, where the employee works for a domestic employer abroad for a limited period, generally enjoy special treatment. It means, during this time the courts at the registered. The last mentioned constellation, the recruitment of local staff, is usually forgotten, although it is basically the cheapest and the easiest to implement. In contrast to the first two constellations mentioned, in this constellation the employee is not transferred from one country to another, but the employee is already working locally in the foreign company and is now entrusted with a new or additional task (the purpose of the international employee assignment), or the employee is recruited locally abroad as a new employee for this purpose. 49
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