In the United States “employment at will” is the basis of the employment relationship. Obviously both parties are aiming for a mutually rewarding relationship, but they can end the relationship at any time without giving notice. Within the European Union however there is no such thing as employment at will. It is recommendable to ensure that all agreements related to the employment are put in writing in an employment contract, for example with us as your European Employer of Record.
As the European HR Partner of North American companies, we run into the differences between these basic principles every day and support our clients in understanding the European HR Landscape. European employment contracts are not only governed by the agreements you make, they also need to be in compliance with local labour law and might even be influenced by a CBA or specific regional influences.
So, if you would like to hire an Italian or Spanish Employee you not only need to make sure your agreements are written down in English and the local language, you also have to make sure that you know which labour code is applicable, which status this individual will have in your company, which CBA is applicable and in which region this person is living. The status will influence the benefits you are going to provide that are governed by a CBA and the region where your employee is living may have additional bank holidays. Someone living in Milan may have more bank holidays than someone living in Rome. That is not applicable when you want to employ a German, but there you need to take other things into consideration that are governed by German Labour Law.
Although European Labour Law is stricter than what you are used to and there is no employment at will, you can still terminate the employment relationship if things aren’t working out as planned. Every European Country has its specific sets of rules and regulations that need to be followed to ensure a proper termination without any claims or penalties.
What can we do for you?
As your European Employer of Record or PEO Organization we are your European HR Partner. We can support you with your overseas headhunting and recruitment in Europe. Our dedicated service teams are fully aware of all intricacies when it comes to European hiring and firing. When you start working with EuroDev you will get your own team of subject matter experts (HR and Payroll) who will advise you what needs to be done in order to be in compliance and even more importantly; to create an attractive and competitive offer for your strategic hire overseas.
For more information, please don’t hesitate to get in touch with EuroDev’s COO, Edward Nijland.