COVID-19 and the Global Workplace
Managing furloughs and layoffs in different countries has always been a challenge for U.S. employers who are often surprised to learn that no-cause layoffs in foreign countries are either illegal or trigger substantial statutory severance requirements. Additionally, employers outside of the U.S. that are intending to do mass layoffs or reductions-in-force are often required to negotiate with work councils or unions before laying off any employees.
This task is currently complicated by the fact that many foreign countries have enacted new laws in response to the pandemic that present additional hurdles to employers that have decided to lay off employees. My colleague Oscar Leija and I recently addressed some of these new laws — as well as benefit programs that have been implemented in some countries to encourage employers to retain employees — in an article that appears in the current International Newsletter of the State Bar of Texas International Law Section, which our readers can access here.
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This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.