Key points
- International posting means an employer temporarily sending an employee to work in another country, which requires compliance with both the local rules and those of the home country.
- The contract must clearly state the length of the posting, pay that complies with the legal framework of both countries, and the administrative formalities.
- A prior declaration to the authorities of the host country is often required before the posting begins; in France, failing to file it exposes the employer to an administrative fine and possible suspension of the service.
- Within the European Union, a posted employee remains covered by the social security system of the home country if the anticipated duration of the work does not exceed 24 months; outside the EU, everything depends on bilateral agreements.
- Taking out additional international insurance covers unforeseen risks (illness, accidents) and makes it easier to access healthcare abroad.
- Legal advice at the outset helps prevent disputes over the employment rights applicable in both countries.
As businesses go international, they often post employees to other countries. Although common, this practice calls for particular attention to legislation and to the social protection of the employees concerned. An international secondment contract must be carefully drafted to comply with both the local rules and those of the home country. In this article, we look closely at the essential steps for structuring this type of contract.
What is international posting of workers?
International posting is the situation where an employer temporarily sends an employee to work in another country. It can concern a wide range of sectors and generally involves significant changes to the employee’s daily life, both professionally and personally.
One of the main reasons for this practice is to optimise the use of specific skills where they are needed. However, the terms of the posting must be clearly defined to avoid misunderstandings and to protect all the parties concerned.
Essential terms to include in the secondment contract
A well-structured secondment contract (in French) must include several mandatory elements that ensure its validity and protect both the business and the employee. These elements include, in particular, the length of the posting, pay, and insurance and administrative aspects.
First, the exact length of the posting must be stated. A vague contract could lead to legal complications or legal uncertainty for the employee. Next, it is crucial to clarify the planned pay. It must comply with the legal framework of both countries involved. Within the EU, a posted employee is entitled at least to the pay rules of the host State; beyond twelve months of actual posting (eighteen months on a reasoned notification), all the generally applicable statutory and collectively agreed working conditions of that State apply, except the rules on concluding and terminating the employment contract and on supplementary pension schemes (Directive 96/71/EC as amended by Directive (EU) 2018/957). Finally, administrative formalities such as the prior declaration must be followed scrupulously so that the employee’s status in the foreign territory is in order.
Why the prior declaration of posting matters
The prior declaration is an essential formality that consists of notifying the competent authorities of the host country that the employee is being posted. This official document ensures transparency of cross-border movements of workers and supports compliance with local employment law rules.
The employer must therefore file this document with the relevant bodies before the employee arrives in the host country. Failure to do so may lead to penalties for the business. In France, an employer established abroad sends a prior declaration to the labour inspectorate of the place where the service begins (Article L. 1262-2-1 of the French Labour Code (Code du travail) (in French)); otherwise, it faces an administrative fine of up to €4,000 per posted employee, €8,000 in the event of a repeat offence within two years, up to a ceiling of €500,000 (Article L. 1264-3 of the Labour Code (in French)), and the administration may suspend the service for up to one month (Article L. 1263-4-1 of the same code).
Social security for posted workers
Social security is a key aspect to consider when posting an employee. Within the European Union, a posted employee remains subject to the legislation of the home country if the anticipated duration of the work does not exceed twenty-four months and the employee is not sent to replace another posted person (Article 12 of Regulation (EC) No 883/2004). Outside the EU, the situation depends on the bilateral social security agreements between the countries concerned.
Some international agreements allow posted employees to continue paying contributions in their home country, thereby avoiding a break in their social rights such as pension or health insurance. Within the EU, the competent institution certifies the applicable legislation at the request of the employee or the employer (Article 19 of Regulation (EC) No 987/2009). It is therefore essential to check these provisions carefully before finalising the secondment contract, to avoid any gap in the employee’s social protection.
Choosing suitable international insurance
In addition to standard social security, taking out international insurance can be particularly relevant. It provides additional cover against unforeseen risks that may arise abroad, such as illness or work accidents.
By choosing suitable insurance, the employer makes sure that the employee will have access to good-quality medical care, wherever the posting takes place. This also helps reduce everyday worries in an unfamiliar environment, fostering peace of mind that allows the employee to concentrate on professional obligations.
Necessary legal reviews and advice
Drafting a secondment contract requires in-depth knowledge of the employment law applicable in both countries. Seeking legal advice on employment law (in French) therefore helps prevent future disputes.
An employment lawyer can help you understand the legal subtleties and check that the contract complies with all relevant national and international regulations. Calling on an adviser thus makes it possible to anticipate complex situations for the business and its employees.
Legal review and keeping up with changing rules
It is also crucial to stay up to date with legislative changes that may affect the content of the contract. The rules on posted work can change and directly affect contractual obligations. Regular legal monitoring led by a professional supports ongoing compliance with the rules in force.
In addition, periodically reviewing the content of existing contracts makes it possible to correct or adapt them when the law changes, thereby avoiding potentially costly and time-consuming litigation.
What are the employer’s and the employee’s rights and duties?
In any international posting, it is vital that the rights and duties of each party are clear and well balanced, to maintain harmonious and productive relations. Rights such as fair pay or the protection of personal data must be ensured.
At the same time, the employee has responsibilities towards the employer, such as meeting deadlines and performing tasks diligently. The employer, for its part, has a duty to provide a safe working environment that complies with local standards, while ensuring that the originally agreed terms of the posting are respected.
Negotiating flexible terms
A crucial aspect concerns the negotiations on contractual clauses beforehand. These discussions may cover whether certain benefits received locally are maintained, such as housing or transport allowances, or other exceptional bonuses.
This contractual flexibility enriches the interpersonal dimension of the relationship between the employee and the employer. Adopting a transparent approach from the outset builds trust and encourages lasting and effective commitments.
Planning the posted employee’s return
Once the assignment is over, another aspect of the contract deserves close attention: the employee’s return to the home country. Anticipating and organising this return properly is fundamental to the lasting value of the experience and to the employee’s professional reintegration.
Specific transition measures, such as continuing training or an assessment of the skills acquired during the posting, can make it easier for the employee to fit back into the original organisation, thereby minimising the disruption caused by this change of context.
Key takeaways for a sound international secondment contract
For a smooth and protective transition, each step of the contractual process deserves care. Beyond strict legal compliance, investing in robust, forward-planned social protection and a constant concern for open communication significantly improve the relationship between the business and its expatriate employees.
Finally, regularly reviewing administrative and contractual practices, combined with active monitoring of legislative changes, supports the operational momentum that successful international postings require.
FAQ on international secondment contracts
What are the first administrative steps to post an employee?
The first steps mainly include the prior declaration to the competent authorities, checking the applicable social security conditions and drawing up a written contract setting out the details of the posting. It is also essential to make sure that all necessary visas are obtained in good time.
How is a posted employee covered for healthcare when posted abroad?
Within the European Union, the employee remains covered by the social security system of the home country where the anticipated duration of the posting does not exceed twenty-four months; outside the EU, it depends on the agreements between the home country and the host country. The employee sometimes benefits from additional international insurance. Taking out supplementary cover is recommended to strengthen protection in the event of health problems abroad.
What are the legal requirements on pay during an international posting?
Pay must comply with the rules of both the home country and the host country. Within the EU, the pay rules of the host State apply to the posted employee (Directive 96/71/EC as amended by Directive (EU) 2018/957). Pay must reflect minimum wage obligations and take into account the benefits linked to international travel. Clarifying these parameters in the contract is crucial to avoid potential disputes.
