What you need to know before hiring internationally: A guide to terminations

Whether you're hiring in Canada, Australia, or anywhere else in the world, understanding global termination policies could save you from hefty fines and potential legal action. 

Inevitably, the day will come when you need to terminate an employee. It’s a complex and delicate process, and the challenges multiply when dealing with international employees—because each country has its own unique set of laws and regulations. 

In this guide, we'll outline the key considerations employers should know about terminating international employees before hiring. 

1. Familiarize yourself with local employment laws

When terminating international employees, it is vital to be well-versed in the employment laws of their respective countries. Employment laws vary significantly across different countries and regions, and the specifics can change over time. The following are especially relevant to terminations:

Specific labor laws can differ significantly between countries, so it’s crucial for employers to consult local labor laws and seek legal advice to ensure compliance with the regulations applicable to their jurisdiction.

2. Understand employee rights and protections

Employee rights and protections vary across different countries and legal systems. In some countries, such as France and Brazil, employees are entitled to severance pay that is based on their length of service. In others, like Mexico, very substantial severance packages—including proportional profit share and a prorated Christmas bonus—are set out by law. Meanwhile, most US states consider employment to be at-will, meaning employees can be dismissed for any reason and often without severance pay.

However, employees worldwide typically have some legal protections against unfair or wrongful dismissal. While the specific rights can differ by country, laws may require employers to provide valid reasons for termination and follow fair procedures in the dismissal process. 

You should also familiarize yourself with the country’s specific rights and protections in the workplace, such as:

Rippling EOR natively integrates all HR tasks within our own software

Book a free demo with us

3. Embrace due process and documentation

In the termination process, it’s important that you follow the right steps and keep things well-documented. For example, in many countries (including Spain, Poland, and Germany), employers need to provide written notice of termination and specify the reasons for dismissal. If you don’t do this, the termination could be considered void, or it could entitle the employee to compensation. 

While due process and documentation requirements for terminations vary across countries, there are common themes and best practices that exist internationally. Here are some key elements often associated with due process and documentation in terminations:

4. Consider cultural and ethical factors

Terminating international employees requires sensitivity to cultural and ethical considerations. In the Philippines, for example, personal relationships and the concept of pakikisama (harmonious relationship) play a significant role in employment relationships. When conducting terminations internationally, it is essential to consider cultural and ethical factors to ensure that the process respects local norms and values. Here are some key considerations:

When operating internationally, employers should seek cultural awareness training, consult with local experts or legal advisors, and take into account the specific cultural and ethical contexts in which terminations occur. Understanding and respecting these factors can help foster positive employer-employee relationships, mitigate potential negative impacts, and maintain the organization's reputation.

Compliance with global termination laws might sound like a never-ending puzzle, but you can make sense of it by consulting expert legal professionals who are familiar with the requirements applicable in their jurisdictions. You can also support your understanding with our resources: browse our Global Hiring Hub to get started.