Case Study: How to retain a key worker when they move to another country
In this blog post, we look at a case study on how to retain a key worker when they move to another country.
US Headquartered Online Retail Company
During March 2019, Capital GES received an email enquiry from a major US online retail company asking how they could retain a key US based employee who needed to move back to his native Ireland for personal reasons.
The company was not present in Ireland and had no working knowledge of employment laws in Ireland. The worker was an EU National, had been working for the company in the US for five years, and had become a valued member of the operations team.
The company researched several options: employ the individual as a contractor or take the time to set up a local entity abroad. Most important to the retail company was a legal and compliant solution to allow their worker to continue working for them. In addition, our client also ideally wanted to match that employee’s benefits (that they received while based in the US) when they moved back home to Ireland.
Employing a worker overseas can be both complex and expensive, so it’s important to seek out the right advice. Some companies believe that converting their worker into an independent contractor is the best solution. However, the risks and penalties with misclassification of workers can be enormous.
Capital GES provided the company with a bespoke Employer of Record (EOR) solution. An EOR solution is a global employment solution where a third party hires your employees on your behalf. By choosing to use our EOR/International PEO solution, we became the worker’s legal employer and managed the entire employment relationship. This included all social security costs, social benefits and statutory rights afforded to the worker.
The first steps were to see his current US contract in order to match the benefits as much as possible. This is not always possible due to the different rules and regulations of each country, but Capital GES guided the client on what was the best option.
Secondly, as the worker was an EU National, registration was swift and we had him registered and ready to start work in days. Capital employed the worker directly on a local payroll, with an Irish employment contract.
While the company still manages the day-to-day responsibility of the worker, Capital GES manages the HR and Admin related tasks. As part of our EOR service, we assigned a designated member of our client service team to both the worker and client. Our dedicated client service member was able to provide the worker and our client with support and help with the relevant paperwork.
Using our EOR solution, the worker could focus on his move and not have to worry about finding another job upon returning to Ireland. Once the move was accomplished, the worker was ready to work remotely in a matter of days.
For our client, the EOR solution was the best option for their business. The EOR process was quick to set up, which resulted in minimal disruption for the other members in the U.S. office. The company had peace of mind that their worker was fully compliant and legal to work in Ireland. Everything including social security costs, social benefits and statutory rights was taken care of by Capital GES. The company could continue to manage the day-to-day responsibilities of their new remote worker, without worrying about how employment laws in Ireland worked.
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