Global HR Hot Top - September 2012: Employment-Context Choice-of-Law Clauses



Multinationals often insert choice-of-law clauses (usually calling for home country law) into cross-border employment agreements. But more often than not these clauses backfire, forcing the employer to comply with the extra rules of an additional legal regime.

In our last Global HR Hot Topic (August), on “Whose Laws Reach Border-Crossing Employees?,” we discussed the general rule that employment protection laws of the place of employment apply even notwithstanding a choice-of-law clause by which parties to an employment (or employee compensation) agreement purport to select the law of some foreign jurisdiction with a nexus to the employment. When a border-crossing employee selects the law of some jurisdiction outside the host country — even a jurisdiction with a genuine nexus to the employment —the selection is usually powerless to block host country “mandatory rules.” And in the employment context, host-country “mandatory rules” include most regulation of the workplace, such as for example laws relating to: pay rate, overtime, payroll, mandatory benefits, hours, rest periods, vacation/holidays, health/safety, labor unions/collective representation, discrimination/harassment/“moral” abuse, employee-versus-contractor classification, restrictive covenant/non compete/trade secret rules and dismissals—firing procedure, notice, severance pay and releases.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:


White & Case LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.