Legal Aspects Of Int. HR

Question 1

Expatriate

Answer 1

The home country Citizen or PR who is assigned to work at a foreign location.

Question 2

Third country nationals

Answer 2

I third country national is a non-resident alien who is paid by a parent country based company but works in a foreign country other than his or her home country. These individuals are generally not subject to federal income and employment taxes on their earnings in the host country but are subject to US taxes with respect to any US source of income.

Question 3

Resident aliens

Answer 3

Individuals are resident aliens if they pass either the green card test or the substantial presence test or if they elect to be treated as a resident alien during their first year working in the United States.

Question 4

Host country national

Answer 4

Residents of the country they are working in. These people are normally paid by the parent country based company but have a legal right to work in their country of residence. Example is Caymanian.

Question 5

International law

Answer 5

Relationships between the entities or legal person’s which are considered the subjects of international law including sovereign nations international organizations and in some cases movements of national liberation and armed insurrection all movements.

Question 6

Article 13 of the United Nations charter

Answer 6

Obligates the UN General assembly to initiate studies and make recommendations which encourages the progress of development of international law and it’s codification. Evidence of consensus or state practice can sometimes be derived from inter-governmental resolutions or academic an expert legal opinions.

Question 7

Labor law and employment

Answer 7

This is the body of laws, administrative rulings, and presidents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediately many aspects of the relationship between trade unions, employers, and employees.

Question 8

Categories of labor law

Answer 8

The first category, is collective labor law relates to the tripartite relationship between employee, employer, and union. Second, individual labor law concerns employees rights at work and through the contract for work.

Question 9

The basics of labor law

Answer 9

The rights and obligations of the worker and the employer are mediated through the contract of employment between the two. Many terms and conditions of the contract, however, implied by legislation or common law, in such a way as to restrict freedom of people to agree to certain things in order to protect employees, and facilitate a fluid labor market. Example is the employment contract outlining written particulars of employment including wages, holiday rates, notice in the event of dismissal, job description and so on.

Question 10

Which country was the first to pass a labor law?

Answer 10

Germany and the first labor law that was passed was the health insurance act in 1883.Which entitled workers to health insurance.

Question 11

What is the convention number 158 of the ILO?

Answer 11

States that an employee can’t be fired without any legitimate motive and before offering him the possibility to defend him self.

Question 12

What is a workplace consolation statute?

Answer 12

Requiring that employers consult their workers on issues that concern their place in the company.

Question 13

Industrial democracy

Answer 13

Refers to the same idea of workplace consolation statute but It takes it one step further work or should have not only a voice to be listen to but also a vote to be counted.

Question 14

What is the code determination law in Germany?

Answer 14

Practiced in countries a cop across continental Europe such as Holland and check republic. This involves the rights of workers to be represented on the boards of companies for whom they work. Half of the Board of Directors being appointed by the company trade union. Shareholders and union select the supervisory board and equal numbers to the executive board.

Question 15

US employees residing within many foreign countries borders require them to take part in social benefit programs. Name for of those social benefit programs.

Answer 15

This includes workers compensation, health benefits, pension and Social Security.

Question 16

What is workers compensation?

Answer 16

Worker’s Compensation is a form of insurance that covers employees for injuries and illnesses on the job.

Employers should ascertain whether US X patriots are covered under local Worker’s Compensation laws. If not the employer may want to arrange supplemental disability insurance.

Question 17

Health benefits in other countries

Answer 17

In countries like United Kingdom, Sweden, and Israel provide free medical care to foreigners employed within their boundaries. Multinational employers sometimes provide special insurance to ex-pats assigned to countries with substandard medical care to cover medical emergencies and serious conditions for which the ex-pat cannot receive an adequate care unless they returned to the home country or travel to a Third country.

Question 18

Are US ex-pats covered under the US employers qualified plans if they are working outside of the country?

Answer 18

Ex-pats employees are assigned to work for foreign subsidiary of their US employer usually are directly covered under the US employer is qualified plans. However, the plan document must permit the inclusion of the non-resident employees of the foreign subsidiaries. If coverage under a US qualified plan is not available, employers frequently provide coverage under a nonqualified plan or arrange for coverage under a host country pension plan.

Question 19

Are you working outside of the US covered under US Social Security?

Answer 19

US ex-pats are often subject to coverage and taxation under the Social Security system of the country to which they are signed, while simultaneously being covered and subject to taxes under the US Social Security system. And example of this would be a United States citizen working in Canada and having Social Security taken off of their pay and if they earn more than $115,000 US then they are also taxed under US for Social Security.

Question 20

Is a Social Security totalization agreement?

Answer 20

Totalization agreement generally allow US ex-pats to receive credit under the US Social Security system for payments to a treaty countries social security system. Moreover, an exception to the general rule allows US ex-pats transferring to a treaty country for less than five years to be exempt from that country‘s Social Security taxes provided that such individuals maintain their coverage under the US Social Security system. The US currently has assigned totalization agreement with Austria, Belgium, Canada, France, Germany, Italy, Netherlands, Norway, Portugal, Spain, Switzerland, and the UK.

Question 21

What are two primary methods employers used to reimburse ex pats for extra tax costs while working in a foreign country?

Answer 21

Tax equalization and tax protection.

Question 22

What is tax equalization?

Answer 22

The objective of a tax equalization policy is to ensure an ex pat tax burden is equal to what it would have been had the employee remained in the US. Any foreign taxes owed by the ex-pat are paid or reimbursed by the employer and us are not part of the ex-pat total tax burden. The result of this method of tax reimbursement is the ex-pat tax position is neither better nor worse than if he or she had remained in the United States.

Question 23

Tax protection

Answer 23

Text protection policies leave open the possibility that an ex pat total tax bill maybe reduced compared to what the individuals tax liability would have been had he or she remained in their home country. If the ex-pat actual income taxes are greater than the hypothetical home country tax rate than the company reimburses the ex-pat for the excess. However, if the ex-pats total tax burden is less than the home country hypothetical tax, the ex-pat retains the tax savings as a windfall.