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

The EU Acquired Rights Directive (implemented in the UK as TUPE) requires that when a business is sold or outsourced, employees transfer on their existing terms and conditions of employment.

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

Lex loci laboris means the law of the place of work applies — the employment relationship is generally governed by the law of the country where the employee habitually performs their duties.

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

Most countries have mandatory notice periods, statutory severance pay formulas, and required procedures (such as hearings or union consultations) that make terminations legally complex and costly if ignored.

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

Totalization agreements between countries (e.g., the US has agreements with over 30 countries) ensure expatriate workers pay social security taxes in only one country and can combine work credits from both.

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

The Posted Workers Directive requires that workers sent temporarily to another EU country receive at least the mandatory employment conditions (e.g., minimum wage, working time limits) of the host country.

GPHR - Global Professional in Human Resources Practice Test

GPHR - Global Professional in Human Resources Practice Test

GPHR International Labor Law and Employment Standards 1