Critically Evaluate The Extent Of The Ethical Responsibility Of The Employer Organisation When Staff Are Transferred On International Assignment, And Recommend A Policy That Should Be Adopted By Firms To Deal With The Impact On Staff Who Are Transferred I
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Issues faced on international assignments and the responsibility of companies towards employees
The priority of a departing employee is upholding the laws and regulations of the home country and the country the employee intends on being employed in. Majority of the tasks undertaken are the responsibility of the Human Resources department. Appendix 1 contains a list of what HR professionals can do to encourage a successful secondment programme as set out in the journal Personnel Today (2005:2)
Law and work related issues
Issue: Contract
Ethical Responsibility of company: The employer company should correspond with the international branch to set up a contract regarding the transfer or relocation. Different countries have different regulations regarding what is compulsory for a contract (Appendix 2 provides stipulated clauses for a few countries). A comprehensive contract should be negotiated ensuring all matters are taken into account to prevent and possible future problems. The contract should include job titles and appointments, commencements and term, accommodation and termination. Explanatory notes on the Appointment of Employee to Overseas Post are seen in Appendix 3. Secondments have less legal implications as the secondee will remain employed by the original employer during the secondment. (Net Lawman Ltd, 2007: 3)
Issue: Foreign worker permits
Intra-Company Transfer Permits
Ethical Responsibility of company: The human resources (HR) department should apply to The Department of Trade, Enterprise and Employment for foreign worker permits or consulate offices of the relevant country for visas. Alternatively the HR department could provide the documentation to the employee allowing for simpler application for the employee. Companies should be knowledgeable of the laws and regulations of the countries in which their branches are to ensure the correct documentation is filled out and correct permits are applied for. Countries such as Ireland have Intra-Company Transfer Permits in place of visas and foreign worker permits that are issued to employees earning a minimum of €40,000 per annum to be transferred by multi-national companies to an Irish branch. This permit is more affordable and less problematic to obtain. (Recruit Ireland, 2007:4) This should be done well in advance of the employees intended departure date. It is critical to obtain a permit to avoid legal consequence. The HR department should have a standing working process of communication with the department to ensure timely and efficient processing of documents.
Issue: Getting the most of a countries policies
Ethical Responsibility of company: Different countries have different policies and benefits offered to its employees. This may include policies such as the Social Insurance Number (SIN) that is required to work in Canada or to receive government benefits. (Ontario, 2007: 5) Companies should insure relevant information is sent to the respective departments ensuring the employee has the full range of benefits available to him/her.
Issue: The moving process
Ethical Responsibility of company: It is ethically correct for the employer company to pay for all transportation costs. This includes airport duties, aeroplane tickets and a partial/whole payment for relocation (if the employee is transferring permanently, or for an extended period of time)
Issue: Wages
Ethical Responsibility of company: The seconder will continue to pay the wages and all connected costs (e.g income tax and insurance contributions) the seconder and then the host will usually reimburse these costs. (Net Lawman Ltd, 2007: 3) In the case of permanent relocation, banking details must be given to host employers to facilitate payments. Banks such as Barclays and Mastercard are available worldwide and are preferable to have. Employees may choose to open accounts in their new country, this can be facilitated through the HR department who would provide the details of local banking services.
Issue: Unfamiliarity with company’s methods
Ethical Responsibility of company: Multinational countries generally have standardised software, methods of operation, assignments. To ensure the employee is fully equipped to take on their new position, diversity toolkits can be offered by the company. This would encompass training programmes, guides and e-learning packages, and supports a wide range of diversity programmes. (Unilever,2007: 6)
Issue: Language barriers technical misunderstanding
Ethical Responsibility of company: Steps should be in place on all levels to increase understanding for all employees but more so those speaking a foreign language. Companies can direct employees to institutions offering language classes at the expense of the enterprise. Some companies have Employee Assistance Programs in place. These programmes help employees in all aspects of the business environment. Such programmes create an affirmative company atmosphere as they create an environment where questions and asking for assistance is promoted improving overall business application. Other methods can also be adopted, companies such as Toyota have introduced “visual manuals that systematize and standardize the expertise of experienced workers in ways that anyone can understand” (Toyota, 2006:7)
Basic service issues
Issue: Housing
Ethical Responsibility of company: If housing residences are in place, they should be made available to international employees (usually found in services industries such as mining.) Employees could also be given the option of receiving a housing allowance or a percentage down payment on the purchase of a housing. Alternatively the company may choose to use the services of a relocation company. Oakwood is the worlds largest rental housing solution, “offering a range of housing options and amenities; we have an apartment to suit each transferees needs, and each companys budget” (Oakwood, 2007: 8) Such companies are ideal secondments
Issue: Transportation
Ethical Responsibility of company: If employee is staying in company residences off site, a shuttle service or other transportation process already in place should be made available