International Labor Contract

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The international contract of employment can be broadly defined as a contract which all items are not attached to France. The fact is however no definition in the French Labor Code. But two types of situations can be distinguished: either the employee is specifically recruited to work abroad, in which case a particular employment contract is concluded, or it is sent abroad by the company for which he was already working in France in which case an addendum to the employment contract is concluded. In both cases, the mandatory information appearing in both types of contracts are the same.

Ø The essential of the International Working

When an employer sends an employee of a Member State of the Union, it must meet the mandatory put by the EEC Directive No. 91-533 of 14 October 1991 on the obligation of the employer to inform the employees of the conditions applicable to the contract or employment relationship.

Section 4 of this Directive concerns expatriate workers. It determines, in conjunction with Article 2, the essential elements that must appear in the contract:

 - Article 2:
     - The identity of the employee and employer;
     - The workplace;
     - Title, function or job category of employee;
     - Start date and duration of the contract (or permanent);
     - The length of notice periods and paid holidays;
     - The amount and composition of remuneration, and its frequency of payment;
     - The length of working day or week;

- Article 4:
     - The duration of the employment abroad;
     - The currency for payment of compensation
     - Possibly, whether in cash or in kind related to expatriation;
     - Possibly, the conditions for repatriation of the employee

 However, the Directive specifies in Article 4 paragraph 3, that the essential elements of the employment contract relating to the expatriate employee, shall not apply if the contract does not exceed a month.

Ø The law applicable to international contract of employment

In principle, the law applicable to international contract of employment is one that was chosen by the parties. When no choice is made, the law of the workplace applies, unless there is an international convention governing this case (eg the Rome Convention), or if there are laws of local public opposition to this principle, which are non-derogable.

Ø The application of collective agreements?

If the contract is subject to French law, the collective agreement would apply through a local contract, will not necessarily apply in cases of international contract of employment.

Indeed, every collective agreement shall determine its territorial scope. The latter rarely exceeds the framework of the French borders.

However, some collective agreements include particular provisions for employees sent abroad. And, if no particular provision is included, the employee has the opportunity to negotiate with his employer so that the collective agreement applies to his business.

Ø Other duties of the employer or exiling posting an employee abroad

Apart from obligations relating to the preparation and content of international contract of employment, the employer must comply with rules relating to social security and working conditions of its employees.

Indeed, firstly, in the case of expatriation, the employee is no longer under the French social security, unless it agrees to a voluntary insurance. However, when the employer is at the initiative of expatriation, it is he who must perform this step

On the other hand; the employer is obliged to take all precautions necessary to assure him of the conditions of decent health and safety on the workplace, even if it can not guarantee equal conditions in France (Soc.11octobre1984, No. 83-12686).

This obligation must be qualified when the employee accepts an award on the compensatory change in working conditions. In this case, it will not bring an action based on poor working conditions.
Given the complexity of the issues raised, employers as employees have a vested interest in referring to knowledge and experience of a firm of competent counsel in both labor law and international law.

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