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1COMPANY PRESENTATION | www.yourdomain.com 1
[PART 2] International Employment and Operational Considerations
Europe Update, LATAM and Country Withdrawal
2COMPANY PRESENTATION | www.yourdomain.com 2
Welcome to the WebinarA copy of the slide deck and recording of the webinar will be emailed to you.
Please send us your questions via the chat window at anytime during the webinar.
Panelists will answer all questions during the Q&A.
Share your comments, feedback, questions at [email protected].
Hi
www.globalupside.com| 33
Andrew Wilson
Andrew is an English Chartered Accountant and has
extensive international experience working in London,
Lagos Nigeria, Caracas Venezuela and San Francisco with
PwC. He worked at Oracle establishing their first 25
international subsidiaries. He spent 10 years as a CFO
with public and private Companies in charge of Finance,
Human Resources, Payroll and Benefits. During that time
he built four international networks. At Global Upside, he
has led engagements in electronics, manufacturing, and
software that involved the Big 4 accounting firms and
several international law firms. His areas of expertise
include international employment law, human resources,
payroll and benefits, finance, and operations support.
[email protected] +1 (510) 910.1604
VP, Private Equity and M&A
www.globalupside.com| 44
Kym Sanderson
Kym Sanderson possesses considerable experience in
international HR. In previous roles, she has worked as part
of internal international HR teams, as well as, in HR
advisory functions. While working with Tesla, she helped
rapidly expand their European operations. She applies this
experience when partnering with Bay Area companies to
assist with global expansion and merger and acquisition
activities. Her area of expertise is EMEA employment law.
She also specializes in acquired rights and contract
standardization
[email protected] 00 44 203-964-2664
Director, Human Resources
www.globalupside.com| 55
Linda Lim
Linda Lim has over 20 years of experience in international
finance, management, and consulting with both private and
public industries. She started her career with KMPG
Singapore and subsequently worked in senior financial
management roles in China, Hong Kong, UK, and the US.
She has developed and led transformational programs to
drive profitability, examine turnaround operational
performance, evaluate and integrate acquisitions, develop
new ventures, and improve the performance of
commercial, supply chain, and manufacturing
organizations. Her areas of expertise include international
finance operations, system implementations, business
process improvements, employment law, human
resources, and payroll.
[email protected] +1 (408) 568.5154
Director, Client Services
6COMPANY PRESENTATION | www.yourdomain.com 6
COVID-19: Europe Update on Key Countries –
Short Time Work/Temporary Layoffs
Germany – Well established
scheme that will pay up to
67% of net pay
France – Implemented a
partial activity scheme that
will pay up to 70% of
previous base
UK – Will pay up to 80% of
wages, capped at £2,500
7COMPANY PRESENTATION | www.yourdomain.com 7
COVID-19: Europe Update on Key Countries –
Short Time Work/Temporary Layoffs
Netherlands - Will pay up to 90% of wages, but
strict parameters on loss of turnover to receive
that. 50% reimbursement more likely.
Spain – Can claim back up to 70% directly
With all these schemes, other than the ERTE scheme in Spain, it is
important to be aware that the request for support is paid to the employer
and not the employee themselves. Employers still have to fund the payroll.
8COMPANY PRESENTATION | www.yourdomain.com 8
o COVID-19 cases much lower than US and Europe at this stage (excluding Brazil)
o Many countries have extensive existing social safety nets:
o Sick Pay
o Unemployment Pay and Benefits
o Macro-Economic problems limiting Governments response
o Safety nets are still being reinforced and extended in most countries
o Emphasis on low-income, poor families and the elderly
o Border Closures and Immigration
COVID19: LATAM and Central America
Business and Government Reaction
o Termination for with and without Cause. Limitation on mutual agreements
o Concepts of Vested Rights and Constructive Discharge apply
o Action either individually or collectively to all employees
o Government notification required proactively in most countries
o Some countries need court applications
Extensive Employment Protection in LATAM
10
Local Labor Laws, Notice Periods, Minimum Redundancy/ Severance Payments
Notice periods have to be worked in conjunction
with statutory processes
Requirements for notification and time periods vary
country to country
Negotiated settlements discouraged in some
countries
Courts proactive in enforcing workers rights
Payments vary per country and contractual
agreement
11COMPANY PRESENTATION | www.yourdomain.com11
o Collective Bargaining Agreement can apply by
industry or Company
o Extensive provisions for compensation, benefits
and severance entitlements
o Some CBA will set minimum payments
o If an employee is unionized then they will be
entitled to representation
Collective
Bargaining
Agreements, Works Councils
and Unions
o Economic and Business reasoning scrutinized
o Employees subject to WFR/RIF will need to be justified
o Process dependent on the number of employees in each country
o Very set processes and will look at other countries and redeployment
o Will require consultation, letters and discussion
Work Force Reductions/ Reduction in
Force (WFR/RIF)
13COMPANY PRESENTATION | www.yourdomain.com 13
o Notifications to customers, vendors, Government agencies
o Negotiation of termination long term contracts
o Settlement of all litigation
Commercial and Liability
Implications of country withdrawal
14COMPANY PRESENTATION | www.yourdomain.com 14
All filings up to date and
paid
Settlement of claims,
penalties and interest
Notice of Good
Standing with
Government Agencies
Income Taxes, Indirect Taxes, Payroll
Taxes and legal obligations
15COMPANY PRESENTATION | www.yourdomain.com15
Liquidation and extinguishment of
legal entities
o File the necessary notifications to dissolve according to the local compliance requirements
and appoint a Liquidator
o Legal entity continues to be liable for taxes and filings if it does not formally dissolve
o Cancel all unnecessary licenses and permits, and be sure to cancel all business names
registered with the local government.
o Maintain tax and employment records for at least five years after the business is closed.
o Entity may be in liquidation i.e. the process may be open for up to 2 years
16COMPANY PRESENTATION | www.yourdomain.com16
Examples: Liquidation and
extinguishment of legal entities
o A liquidation of a company in Germany takes more than a year, since the cancelation from
the Trade Register cannot be performed earlier than a year from the first notification of the
creditors.
o Voluntary liquidation of a company in China usually involves a more complex government
approval process than the incorporation of the company. Our experience tells us that a
smooth solvent liquidation and recovery not only requires a thorough understanding of laws
and regulations, but also benefits from experience with local best practice and the ability to
carry out complex on-the-ground work. It can take from 6-24 months.
o Brazil will take 6-24 months, depending on the complexity of the entity.
17COMPANY PRESENTATION | www.yourdomain.com17
QUESTIONS
18COMPANY PRESENTATION | www.yourdomain.com 18
Thank You
EMAIL ADDRESS
+1 (408) 913-9130
PHONE NUMBER