International Employment Laws, Agreements Create Compliance Challenges

Employment laws and collective bargaining agreements in countries around the world drive employers’ payroll calculations and the required documents to be issued, a global practitioner said May 12.

While “lots of jurisdictions will have a single, overarching piece of legislation that covers employment law,” collective agreements are also fairly commonplace, Tim Kelsey, managing director of Kelsey’s Payroll Services, said. In some European countries, more than 90% of employees may be covered by a CBA, including senior executives, Kelsey said.

When U.S. employees are sent to another country, they are subject to the work country’s requirements for annual leave, paid sick ...