It seems so simple – just roll-out your U.S. Code of Conduct or policies to the rest of the world. They’re already written, right? And you’ve had a lawyer look them over in the States. What could be easier? Hold on right there. It’s not always obvious that certain words, phrases or concepts may need to be changed or removed in order to meet with the expectations of your employees in the rest of the world. Here are the top seven things to avoid in globalizing your Code, employee handbook or policies.
Reference to U.S. Law
Referring to “local, state or federal law,” or “state laws” can immediately flag your policy as U.S.-centric. Instead, include references “all applicable laws,” or to other in-scope jurisdictions, such as European Union (EU) law. If your company is only in a few jurisdictions, you can write out the name of each country. If you want to keep references to U.S. federal law in your Code or policies, try “national, state, local, or U.S. federal law.”
Also – as Brexit approaches, please note that references relating to EU law may need to be changed to “UK and EU law,” as the Brexit process may separate UK law from EU law in the near future.
Reference to U.S. Agencies
Many handbooks and polices include references to U.S. agencies, such as the Equal Employment Opportunity Commission (EEOC), Department of Justice (DOJ) or Securities and Exchange Commission (SEC). References to U.S. bodies can be jarring to non-U.S. employees, especially when referenced in the context of say, the definition of discrimination under the EEOC. Strip references to U.S. agencies wherever possible, and define terms using universal definitions instead of U.S.-centric ones.
References to U.S. Legal Principles
References to U.S. legal principles or terms of art applicable only in U.S. law run their way thought many policies and Codes of Conduct. Phrases like “protected categories” (with respect to harassment), “at-will employment,” and “hostile work environment” should be removed. These words do not contain the same meaning outside the U.S., and frequently do not carry the weight of the law.
Personal privacy rights in Europe, Argentina, Singapore and much of the world are stronger than those afforded to U.S. citizens. Many times, policies, employee handbooks or Codes of Conduct assert the ability to engage in activities which would violate privacy principles or law in many countries. Privacy law enforcement varies significantly from country to country, so a legal review should be commissioned before a company asserts the ability to monitor emails, search bags, or put up CCTV cameras.
Contract Rights and Employment Protections
At-will employment is a U.S. construct that is inapplicable in the EU and many other countries. Many, if not all, employees will be under a written contract that spells out their employment rights and benefits. It’s recommended to take out references to at-will employment unless you specifically state that these sections apply to U.S. employees only.
Disciplinary and Termination Rights
Because at-will employment does not exist in much of the world, termination of employment can only occur under certain circumstances. Sometimes these circumstances are laid out in the law, and other times they are included in employment contracts, or negotiated by works council agreements. Adding the phrase “as allowed by law” anywhere that the right to terminate employment has been asserted can make the policy or Code more accepted. Employers frequently do not have free reign to determine when termination can occur, so the phrase “as allowed by law” or “where allowed” should cover you.
U.S. Employee Designations
Many policies, handbooks and Codes of Conduct refer to employees that are “exempt” and “non-exempt.” Non-exempt is a U.S. construct, and although it has similarities to concepts within the country laws of other places, the term “non-exempt” is a legal term of art. Work with a locally-based employment lawyer to determine which (if any) of these types of distinctions can be used within your business or leave these types of designations out entirely.
Download your Top Seven U.S. to Global Policy Checklist HERE. With a few tweaks, you can ensure that your U.S. policies, Code of Conduct and employee handbooks can be made the global success they deserve to be.
You’ve nailed this topic Kristy! This should be essential reading for anyone in the US rolling out compliance and employment policies outside the US.