Avoiding a long, costly journey

Know all the rules before terminating an expat
By Julie Lessard
|Canadian Employment Law Today|Last Updated: 08/20/2014

Expatriation contracts have become a complex legal issue, with a wide array of contract types that vary based on an employer’s internal policies and on contract jurisdiction. From “local-to-local,” “local-to-expat,” “expat-to-local” and traditional long- and short-term expat contracts, the tripartite relationship between a foreign employer, local employer and expatriating employee can become difficult to understand and to manage.

In the event of an expat termination, employers could be exposed to civil liability in more than one jurisdiction, sometimes involving substantial monetary compensation to the terminated expat — which is often completely unforeseen and unbudgeted by employers.

It’s important to understand the potential dangers and identify ways to minimize risks when terminating an expat.