GPHR International Labor Law and Employment Standards 1

Question 1

Under EU law, what does the Transfer of Undertakings (TUPE / Acquired Rights Directive) protect?

Accepted Answer

Employees' rights to have their employment terms preserved when the business they work for is transferred to a new owner

Answer

Employer's right to terminate contracts during a business transfer

Answer

Trade secret protection during mergers

Answer

Executive bonuses during acquisitions

Question 2

What is the principle of 'lex loci laboris' in international employment law?

Accepted Answer

The law of the country where the employee habitually carries out their work governs the employment relationship

Answer

The law of the country where the parent company is headquartered governs all employment contracts

Answer

Employees can freely choose which country's law applies to their contract

Answer

International law always supersedes national employment law

Question 3

Which aspect of employment law must a US-based MNC research BEFORE terminating an employee in a foreign country?

Accepted Answer

Statutory notice periods, severance entitlements, and procedural requirements for lawful termination

Answer

The employee's credit score

Answer

Whether the employee holds a US passport

Answer

The employee's home country tax filing status

Question 4

What is the purpose of a 'social security totalization agreement' between countries?

Accepted Answer

To prevent double payment of social security taxes when an employee works in two countries

Answer

To harmonize income tax rates for expatriates

Answer

To merge pension funds across borders

Answer

To set a global minimum wage

Question 5

Under the EU Posted Workers Directive, what minimum employment conditions must be provided to workers posted to another EU member state?

Accepted Answer

The host country's mandatory employment conditions, including minimum wage and maximum working hours

Answer

Only the employment conditions of the sending country apply

Answer

The conditions are entirely negotiable between the worker and employer

Answer

Only EU-wide minimum standards apply, not host country specifics

Question 6

What is 'mandatory arbitration' and why is it controversial in global employment contexts?

Accepted Answer

A contractual requirement that employees resolve disputes through arbitration rather than courts; controversial because it may limit access to justice

Answer

A process where governments set wages for all workers in an industry; controversial because it bypasses market forces

Answer

An ILO mechanism for resolving inter-country labor disputes; controversial due to enforcement gaps

Answer

A payroll processing method; controversial due to currency risk