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Tuesday, October 13, 2026

International Employment Laws, Agreements Create Compliance Challenges - Bloomberg Tax

Employment laws and collective bargaining agreements in countries around the world drive employers’ payroll calculations and the required documents to be issued, a global practitioner said May 12.

While “lots of jurisdictions will have a single, overarching piece of legislation that covers employment law,” collective agreements are also fairly commonplace, Tim Kelsey, managing director of Kelsey’s Payroll Services, said. In some European countries, more than 90% of employees may be covered by a CBA, including senior executives, Kelsey said.

When U.S. employees are sent to another country, they are subject to the work country’s requirements for annual leave, paid sick leave, and maternity or family leave, Kelsey said.

The European Union’s Posted Workers Directive also requires employers to provide the more beneficial of the employee’s existing terms of employment or the minimum requirement in the work country, Kelsey said.

“This presentation is really about the art of the possible, what could happen in the employment relationship around the globe,” Kelsey said at the American Payroll Association’s 40th Payroll Congress in Las Vegas.

Labor Codes, Collective Agreements

Kelsey used South Africa’s Basic Conditions of Employment Act as an example of a labor code, a single piece of legislation that in the country sets rules on...



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