The termination of an employee’s contract is an unavoidable part of business that no one enjoys. Moreover, while domestically the legal framework around “hiring & firing” might be straight forward, abroad this process can look significantly different. Consequently, prior to hiring a new employee, it is imperative that an employer is aware of the local legal situation of their Employee for contract termination. Failure to adhere to the local laws and regulations could result in avoidable reputation damage and costly legal action. WorkMotion can provide you with support and guidelines in each respective country in order for you to be aware of the local stipulations and make a well informed decision.
Another great benefit of using WorkMotion as an Employer of Record is that we will ensure that in the hiring contract all the necessary clauses are specified and the procedure to terminate a contract is compliant with the local law. Therefore, WorkMotion takes responsibility for all international employee management tasks, including contract termination.
There are usually three points in time specified in a contract during which the termination procedure can differ, which lead to termination processes, that usually grow in complexity:
In any case, we strongly advise our clients to immediately inform WorkMotion about any conflict or development that could eventually lead to the requirement to terminate or dismiss a candidate, so that a joint strategy to achieve the same with the least damage to parties can be developed.
The general steps of the process for contract termination are as follows:
Step 1: Notification of WorkMotion that a contract has to be terminated
Step 2: Once you inquire about a termination of contract, WorkMotion will ensure that the local termination conditions shall be met and the notification period will be kept. To this end, we will inform you about the necessary next steps to be taken for each country, because every process has different nuances, depending on the local law
Step 3: Often extra effort is needed and submission of relevant documents, which we will then request from you when time comes. -> these are specified in the country guides, which we can provide you with for the respective countries. For example, in the case of Germany, a written notice of termination is required, that needs acceptance in writing by the employee.
Step 4: We will schedule a session to sit together and brief you on the process to meet all the necessary requirements for the respective process, including deadlines that have to be met, rules that have to be followed in communication with the employee and other stipulations that are potentially required and what the legal power of the employee is.
Employer and Employee also have the option to agree on a mutually accepted termination using a procedure laid down in the Labour Code. Please note that also such agreements have strict form- & content factors to be considered, so here too we advise to take WorkMotion's advice as soon as a case arises. Because, mutually agreed terminations may require a severance (transition fee) to be paid and can be costly in terms of legal support.
The contractor model is only suited in very rare instances, such as
WorkMotion’s clients typically want to enter into a normal employer / employee relationship: a long-term relationship between both parties, with full integration of the employee into the clients culture.
For that reason, the contractor (=freelancer) model does not work.
With WorkMotion, your talent is employed with locally compliant employment contracts. This includes of course as well, that taxes, social security and other statutory or additional benefits are provided by you via WorkMotion.