GPHR International Labor Law and Employment Standards 2

Question 1

What does 'at-will employment' mean and which major country is the primary exception among developed economies?

Accepted Answer

Employers can terminate employees for any legal reason without notice; the US is the primary country using this doctrine among major economies

Answer

At-will employment (predominant in the US) allows either party to end the relationship without cause or notice; virtually all other developed economies require just cause for dismissal and mandatory notice periods.

Question 2

What is the ILO's definition of 'forced labor' under Convention No. 29?

Accepted Answer

All work or service exacted from any person under threat of a penalty and for which they have not offered themselves voluntarily

Answer

ILO Convention No. 29 defines forced labor as work extracted under coercion (threat of punishment) and without voluntary consent, covering debt bondage, human trafficking, and state-imposed labor.

Question 3

How does the GDPR (General Data Protection Regulation) impact global HR practices for companies with EU operations?

Accepted Answer

It governs how employee personal data is collected, stored, transferred, and processed, requiring lawful basis and data subject rights

Answer

GDPR treats employee personal data with strict requirements: lawful processing basis, data minimization, retention limits, cross-border transfer restrictions, and employee rights to access and erasure.

Question 4

What is a 'fixed-term contract' and what legal risk does repeated renewal create in many countries?

Accepted Answer

A contract with a defined end date; repeated renewals may trigger statutory conversion to permanent employment

Answer

In many countries (e.g., EU member states, Japan), repeatedly renewing fixed-term contracts can legally convert the arrangement into permanent employment, requiring just cause for any subsequent termination.

Question 5

What is 'employer of record' (EOR) and when would a global HR professional recommend it?

Accepted Answer

A third-party organization that legally employs workers on behalf of a company in a country where the company has no legal entity

Answer

An EOR allows a company to hire workers in a foreign country compliantly without establishing a local legal entity, handling payroll, taxes, and statutory benefits as the legal employer.

GPHR - Global Professional in Human Resources Practice Test

GPHR - Global Professional in Human Resources Practice Test

GPHR International Labor Law and Employment Standards 2