Posted: March 23rd, 2023

Restrictions on Foreign Employee Termination in the European Union

International and local laws regulate organizations that employ workers from overseas destinations. Multinational corporations (MNCs) have various restrictions regarding the cessation of employment for foreign employees. Such limitations are based on years of service as per the contract period, the reason for termination, and the cost-benefit analysis of a company (Gebel & Giesecke, 2016, p. 488). Therefore, workers seeking economic engagement in overseas companies should understand the procedures of job cessation. Although restrictions for employee termination are meant to caution corporations of potential losses, some conditions may adversely disadvantage employees, leading to abuse of labor rights.

Terminating contracts for overseas employees is difficult for human resource professionals, especially based on international legislation requirements. Onley (2014) indicates that employment systems restrict managers from terminating foreign worker contracts except cases of severe misconduct. The author further illustrates a case in point of the German’s protection act that sets a standard of termination after exhausting several conciliation avenues. Such options include transferring a worker to other departments, role differentiation, and possible demotions. Other European Union nations, such as Spain, have developed conditions for nine weeks reverence pay for each full year worked in a firm as a package for cessation (Onley, 2014). Therefore, requirements for employment termination are strict to ensure observance of labor laws and workplace rights of foreign employees.  

Workplace due process for terminating foreign employee contracts is a significant tool for MNCs in the EU. Considering that European labor laws are divergent across the region, companies face different restrictions when hiring or firing overseas workers. Although employees are expected to provide professional services and work diligently, human resource managers are also obligated to practice fairness and follow due process during employment termination.

References

Gebel, M., & Giesecke, J. (2016). Does deregulation help? The impact of employment protection reforms on youths’ unemployment and temporary employment risks in Europe. European Sociological Review, 32(4), 486-500. doi:10.1093/esr/jcw022

Onley, D. S. (2014). Terminating overseas employees. Society for Human Resource Management. Retrieved from https://www.shrm.org/hr-today/news/hr-magazine/Pages/0114-overseas-terminations.aspx