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| Date post: | 20-Jul-2015 |
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Law |
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Presentation TitleHealth and Safety Risks for
Your Traveling Employees:
What Steps Can Employers Take
to Protect Employees Working
Overseas and Mitigate the Risks?
Presented by:
Michael P. Royal
Shareholder
Littler Dallas Office
214.880.8167 | [email protected]
Ben Huggett
Shareholder
Littler Philadelphia Office
267.402.3035 | [email protected]
Peter Martin
Group President & CEO
AFIMAC Global
800.554.4622 | [email protected]
Presented by:
Emma Neher
Shareholder
Littler Venezuela Office
216.610.5464 | [email protected]
Jaime Solis Canjura
Partner
Littler San Salvador Office
503.2296.9500 | [email protected]
Frances Phillips Taft
Associate General Counsel
GE Infrastructure, GE Oil & Gas
+39 055 423 3387 | [email protected]
• What countries or regions currently
are considered “hotspots” and why;
• Advice on putting together a plan to safely
send employees on dangerous assignments;
• Strategies and advice on what measures the
company needs to address and what type of
payments/benefits must be granted in different
cases for different countries;
• Insight on how to successfully draft an international letter for a
risky assignment;
• Key steps: before, during and after your employees’ dangerous
assignments.
Summary of Presentation
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• Countries where war, civil insurrection, or terrorism
exists and presents physical harm or imminent
danger to the health or well-being of an employee.
• Widespread, uncontrolled violence or disease.
• Lack of infrastructure (limited availability of basic
goods and medications, for example).
• Lack of family support services, such as schools,
health care, etc.
• Extreme physical conditions (sub-freezing
temperatures, remote locations, etc.)
What Can Be Considered a “Hot Spot?”
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Duty of Care Concept:
It is a moral and ethical issue, part of the company’s social responsibility effort.
Employment relationship includes an obligation of care of the employees:
1. Health
2. Safety
3. Security
“Duty of Reasonable Care”
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Duty of Care Legislation:
Many Western Countries have developed legislation, and there is
substantial case law on this issue.
USA
The OSHA general duty of care provision provides:
Each employer . . . Shall furnish to each of his employees:
“employment and a place of employment which are
free from recognized hazards that are causing or are
likely to cause death or serious physical harm to his
employees.”
“Duty of Reasonable Care”
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Four elements are necessary to establish
a breach of an employer’s duty of care:
• A hazard existed in the workplace;
• The hazard was recognized;
• The hazard was causing or likely to cause
death or serious injury to employees; and
• There were feasible steps the employer
could have taken to abate the condition.
“Duty of Reasonable Care”
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Your employee!
An asset that may become a liability!
What can happen:
• Injury or death of employee or
family member
• Litigation
• Loss of corporation reputation
What to do?
Develop a serious strategy to manage
and avoid any risks for your employees!
“Your Most Valuable Asset”
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• What Companies must do?
– Select an adequate assignee to face
a challenging assignment
– Structure the assignment: rotational
– Early planning of the assignment
– Prepare a specific policy
– Training with company’s corporate
security department or international
security risk company plus cultural
training
The Strategic Plan
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• What Companies must do?
– Carefully draft an international letter
for a risky assignment.
– Pay assignee accordingly to the
danger he or she will fact.
– Secure good health insurance plus
additional insurances.
– Maintain close attention to the
assignee in a dangerous spot
– Have a contingency plan.
The Strategic Plan (con’t.)
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• If you have an assignee population, you should have an
international assignment policy, but if you have people
in risky locations, you must have a policy in place.
• Why?
– Creates a basic road map for everyone
– It helps to define the particular situation of those assignees
and define exceptions on payments and benefits
– Ensures that important steps are not forgotten or neglected
Int’l. Assignment Policy
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• Key Document!
• Employee’s specifics about compensation,
benefits and general conditions governing
the expatriation
• It is an international employment contract
• Most important when it is to send an
expat to a dangerous assignment
Int’l. Assignment Letter
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• Besides general
information about the job
itself you have:
– Compensation items
– Definition of benefits
– Health Insurance
– Other insurances
Components of an
Int’l. Assignment Letter
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• Hardship Pay: Usually 10% to 25% of base
salary, to compensate employees for extreme
living conditions.
• Danger Pay: Typically 15% to 25% of base
salary, in addition to all other compensation.
• Travel Benefits: Extra trips, or allowance to
make trips for R&R (rest and relaxation) on a
periodic basis, in a safe and secure location.
Compensation
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• Provide Security Briefing and Training: Ensure
every assignee is informed about the security
risks in-country, knows how to address them,
knows where to go in an emergency and whom
to call (in the company, and perhaps outside –
security consultants as well)
• Bodyguards (if required)
• Legal Representation Abroad
Benefits
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• Secure Housing: Limitations on where assignees can
live to eliminate situations that are particularly risky.
Apartment complexes, gated communities or
compounds may be appropriate. Armed guards and
security systems are typical.
• Kidnap/Emergency Response
• Emergency Evacuation Procedures: Each assignee
must understand the company’s procedure for
evacuation, how it affects family members, etc., in the
event of natural or man-made disaster, war or other
catastrophe.
More Benefits
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• Better be safe than be sorry!
• Protect your assignee, the
financial health and moral
of your company!
– Health Insurances
– Other Insurances
Insurance
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• Nowadays companies recognize the
importance of insuring all their travelers
employers!
• International package or local insurance?
• Go for an International Health Insurance!
• But don’t forget to check local compulsory
laws regarding insurance!
What Kind of Insurance?
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• Making sure the company provides the right insurance cover is vitally important on the host location, if possible, or to have the option of returning home for treatment or a nearby more developed country
• Access to medical care and medication abroad (routine and emergency)
• Medical crisis evacuation to home country or a near by country, if necessary
Health Insurance
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• Vaccinations
• Insect-Borne Illnesses
• Food and Water-Borne Illnesses
• HIV and Other Sexually
Transmitted Diseases (STDs)
• Environmental Hazards – extreme temperatures
• Traveling with Chronic Illnesses (brining necessary
medication along)
• Health and stress issues (Medical insurance)
More Issues?
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• Life and Disability Insurance: Make sure
coverage is valid in the assignment country.
• Kidnap and Ransom Insurance
• Burglary and Other Household Effects
Insurance
• War Risk Insurance: Often needed in
countries designated as war zones
Other Insurances
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• Define a protocol for assigning “critical” status to disaster or crisis situations. It is important that companies have informed local sources to ensure that their assessment of the situation is valid and current.
• Formalize and communicate country or regional contact points and phone numbers.
• Set up a procedure for the employee in the event of an emergency.
Crisis Management
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• Ensure that employee emergency contact
numbers, as well as home and office phone
numbers, are on record with the home office
and the country contact person.
• Conduct emergency evacuation briefings or
updates upon assignment and at periodic
points during assignments, particularly in
areas of potential risk or conflicts
• Plan for financial and travel contingencies.
Crisis Management (con’t.)
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• Integrate your employee back into the
company or send to another assignment!
– Losing supplements and allowances
– Reintegration into domestic workforce and
home country
– Work experience not valued – leaving company
• Trauma: If needed psychological assistance!
Repatriation
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Risks of Working in a Foreign Country
Frequently Cited Risks:
• Carjacking
• Assault
• Robbery
• Extortion
• Residential Invasion
• Kidnapping
Expatriate Risk Management:
Analysis
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