Global Workplace Compliance- Spring 2010 in Review

On 20 January, the Global Workplace Compliance network held its third webinar focusing this time on Asian employment trends and what U.S. employers need to know about employment law in India, Korea and China. The session was moderated by Jacqueline Scott of Fortney Scott, and the panel included Shalini Agarwal, Esq., Partner, ALMT LEGAL (India), Brendon Carr, Esq., Attorney, Hwang Mok Park, PC (Korea) and K. Lesli Ligorner, Esq., Partner, Paul Hastings (China).

The webinar discussed the type of legal structure an employer should use in each country, since this generally determines what type of employee the organisation can hire. If a company wants to hire employees directly in China, it needs to be a legal entity such as a wholly-owned subsidiary of the parent. If a company only has a representative office in China, it can hire Chinese employees only through a staffing agency. Korea is the most protective of the three countries and was described by Ms. Scott as “the California or France of Asia”. In Korea, there is no distinction between white and blue collar employees and the only group not protected by Korean employment law is the board of directors. India is still fairly protective of employee rights compared to the United States, with strict rules for those employees who are “workmen”. Indian employees who are not “workmen” are covered by the specific terms of their employment contract. In all three countries it is very difficult to terminate employees even for cause, and often impossible to terminate in order to cut costs. It is therefore recommended that employers negotiate a voluntary resignation package with employees instead.

Global Workplace Compliance network will have its next webinar on 20 April which will cover the employment issues in South America.
Contact: Nita Beecher nita.beecher@orcww.com