[PART 2] International Employment and Operational Considerations · 2020. 6. 3. · He worked at...

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[PART 2] International Employment and Operational Considerations

Europe Update, LATAM and Country Withdrawal


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Andrew Wilson

Andrew is an English Chartered Accountant and has

extensive international experience working in London,

Lagos Nigeria, Caracas Venezuela and San Francisco with

PwC. He worked at Oracle establishing their first 25

international subsidiaries. He spent 10 years as a CFO

with public and private Companies in charge of Finance,

Human Resources, Payroll and Benefits. During that time

he built four international networks. At Global Upside, he

has led engagements in electronics, manufacturing, and

software that involved the Big 4 accounting firms and

several international law firms. His areas of expertise

include international employment law, human resources,

payroll and benefits, finance, and operations support.

[email protected] +1 (510) 910.1604

VP, Private Equity and M&A


Kym Sanderson

Kym Sanderson possesses considerable experience in

international HR. In previous roles, she has worked as part

of internal international HR teams, as well as, in HR

advisory functions. While working with Tesla, she helped

rapidly expand their European operations. She applies this

experience when partnering with Bay Area companies to

assist with global expansion and merger and acquisition

activities. Her area of expertise is EMEA employment law.

She also specializes in acquired rights and contract

standardization

[email protected] 00 44 203-964-2664

Director, Human Resources


Linda Lim

Linda Lim has over 20 years of experience in international

finance, management, and consulting with both private and

public industries. She started her career with KMPG

Singapore and subsequently worked in senior financial

management roles in China, Hong Kong, UK, and the US.

She has developed and led transformational programs to

drive profitability, examine turnaround operational

performance, evaluate and integrate acquisitions, develop

new ventures, and improve the performance of

commercial, supply chain, and manufacturing

organizations. Her areas of expertise include international

finance operations, system implementations, business

process improvements, employment law, human

resources, and payroll.

[email protected] +1 (408) 568.5154

Director, Client Services


COVID-19: Europe Update on Key Countries –

Short Time Work/Temporary Layoffs

Germany – Well established

scheme that will pay up to

67% of net pay

France – Implemented a

partial activity scheme that

will pay up to 70% of

previous base

UK – Will pay up to 80% of

wages, capped at £2,500


COVID-19: Europe Update on Key Countries –

Short Time Work/Temporary Layoffs

Netherlands - Will pay up to 90% of wages, but

strict parameters on loss of turnover to receive

that. 50% reimbursement more likely.

Spain – Can claim back up to 70% directly

With all these schemes, other than the ERTE scheme in Spain, it is

important to be aware that the request for support is paid to the employer

and not the employee themselves. Employers still have to fund the payroll.


o COVID-19 cases much lower than US and Europe at this stage (excluding Brazil)

o Many countries have extensive existing social safety nets:

o Sick Pay

o Unemployment Pay and Benefits

o Macro-Economic problems limiting Governments response

o Safety nets are still being reinforced and extended in most countries

o Emphasis on low-income, poor families and the elderly

o Border Closures and Immigration

COVID19: LATAM and Central America

Business and Government Reaction

o Termination for with and without Cause. Limitation on mutual agreements

o Concepts of Vested Rights and Constructive Discharge apply

o Action either individually or collectively to all employees

o Government notification required proactively in most countries

o Some countries need court applications

Extensive Employment Protection in LATAM

10

Local Labor Laws, Notice Periods, Minimum Redundancy/ Severance Payments

Notice periods have to be worked in conjunction

with statutory processes

Requirements for notification and time periods vary

country to country

Negotiated settlements discouraged in some

countries

Courts proactive in enforcing workers rights

Payments vary per country and contractual

agreement

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o Collective Bargaining Agreement can apply by

industry or Company

o Extensive provisions for compensation, benefits

and severance entitlements

o Some CBA will set minimum payments

o If an employee is unionized then they will be

entitled to representation

Collective

Bargaining

Agreements, Works Councils

and Unions

o Economic and Business reasoning scrutinized

o Employees subject to WFR/RIF will need to be justified

o Process dependent on the number of employees in each country

o Very set processes and will look at other countries and redeployment

o Will require consultation, letters and discussion

Work Force Reductions/ Reduction in

Force (WFR/RIF)


o Notifications to customers, vendors, Government agencies

o Negotiation of termination long term contracts

o Settlement of all litigation

Commercial and Liability

Implications of country withdrawal


All filings up to date and

paid

Settlement of claims,

penalties and interest

Notice of Good

Standing with

Government Agencies

Income Taxes, Indirect Taxes, Payroll

Taxes and legal obligations


Liquidation and extinguishment of

legal entities

o File the necessary notifications to dissolve according to the local compliance requirements

and appoint a Liquidator

o Legal entity continues to be liable for taxes and filings if it does not formally dissolve

o Cancel all unnecessary licenses and permits, and be sure to cancel all business names

registered with the local government.

o Maintain tax and employment records for at least five years after the business is closed.

o Entity may be in liquidation i.e. the process may be open for up to 2 years


Examples: Liquidation and

extinguishment of legal entities

o A liquidation of a company in Germany takes more than a year, since the cancelation from

the Trade Register cannot be performed earlier than a year from the first notification of the

creditors.

o Voluntary liquidation of a company in China usually involves a more complex government

approval process than the incorporation of the company. Our experience tells us that a

smooth solvent liquidation and recovery not only requires a thorough understanding of laws

and regulations, but also benefits from experience with local best practice and the ability to

carry out complex on-the-ground work. It can take from 6-24 months.

o Brazil will take 6-24 months, depending on the complexity of the entity.


QUESTIONS


Thank You

[email protected]

EMAIL ADDRESS

+1 (408) 913-9130

PHONE NUMBER

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[PART 2] International Employment and Operational Considerations · 2020. 6. 3. · He worked at...

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