Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Hiring, Paying and Retaining the

Employees You Need across the

Globe

• Discover key tactics to acquire and engage talent for

international operations

• Understand how to mitigate key operational risk

exposures when expanding across borders

• Understand key issues and trends in multinational

payroll

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Hiring, Paying and Retaining the

Employees You Need across the GlobeKatie Davies, Senior Director, Radius

Company Structure Considerations

Why does company structure matter?

Legal presence indicates commitment to market & creates

commercial footprint which assists in the hiring and retention of

employees

Dictates the required registrations and timeline for set up, which

in turn dictates speed of hire

Employee benefits can be impacted country to country

In France, having a NRE can restrict the number of providers

offering coverage

In the U.K., not having a local bank account will limit the

number of providers able to provide coverage

Company structure can dictate elements of your benefits plan

Company Structure Considerations

Payroll only vs. entity setup: Are you at permanent establishment

risk?

PE is created by any business activity that generates revenue in a

country or contributes to group entity revenue

Local tax authorities will generally assess corporate tax on a deemed

revenue arising in-country

Common entity types:

Representative office: Minimal presence, low risks

Branch office: Extension of a U.S. company, no legal protection, may

be subject to taxation in U.S.

Subsidiary: Separate legal entity, more complicated setup

International Staffing Profile

Consider staffing profile :

• Local employees

• Expatriate employees

• Contractors

Employees (expat and locals) will require local payroll and reporting

compensation in local currency

If expatriate : Immigration / Visas requirements must be considered and

plan well in advance for associated timelines for applications as well as

wider expatriate tax planning and compensation structuring.

Genuine contractor v employee – are they a bona fide contractor ?

Local Hire Employees:

Don’t make the mistake of assuming that your U.S.

employment and benefit practices will work in other

countries

Each country has unique rules and regulations to

consider

Failure to follow best practices may result in dissatisfied

employees

Remember: Everything will be different overseas

Sample U.S. Offer Letter

Dear Jane Doe,

On behalf of XYZ INC. (the “Company”), I am pleased to confirm our offer of employment to you for the position of EMEA Regional Sales Director …You will be paid a base salary of $5,000 per month less applicable tax and other withholdings.

You will also be eligible to participate in various Company fringe benefit plans, including group insurance and 401(k) programs. You will also be eligible for fifteen (15) days of paid time off (PTO) each year.

Subject to the approval of the Company’s Board of Directors, you will be granted an option to purchase X shares of Company common stock….

Your employment with the Company is “at will.” It is for no specified term and may be terminated by you or the Company at any time, with or without cause or advance notice…

Employment Contract Best Practices

U.S. offer letters and “employment at will” are generally not allowed

outside the U.S.

Always advisable to have a locally compliant employment contract,

written in accordance with local employment legislation

Employees will be automatically covered by local employment laws

and important for parties to understand contractual obligations

A robust employment contract not only covers the local statutory

requirements but should be designed to best protect the employer in

many areas (i.e. termination, notice, restrictive covenants, PIIA etc.)

Employee termination is highly regulated in most countries outside the U.S.

Contract Best Practices

While sometimes there may be no technical requirement to have a

written employment contract be aware of:

Local employment legislation will take precedence in cases where no

employment contract exists, or if the terms of the contract are less

favorable than locally mandated or statutory terms

Written contracts, covering the mandatory statement of employment

particulars and key terms/conditions that fall outside these requirements

(ex: benefits), are recommended

Consider employee categories and applicable industry specific

collective bargaining agreements

Different level employees will have different terms applied to their

employment, including additional mandatory benefits

Thank you for your interest in this presentation.

View the on-demand webinar or download the full

presentation at:

www.Proformative.com

Hiring, Paying and Retaining the Employees

You Need across the Globe