Outsourcing transactions can be complex processes raising a variety of legal and regulatory challenges. These warrant careful consideration early in the process by both the outsourcing customer and the third party service provider.
One of the challenges that frequently arises in an outsourcing transaction relates to the customer employees that work in functions to be outsourced. Commonly, the customer no longer needs or wants to retain those in-scope employees unless it can redeploy them within its business. But can these in-scope employees be dismissed on the basis that the customer no longer needs them following the outsourcing? If so, are they entitled to severance payments? Or do they automatically transfer to the service provider by operation of law meaning that the service provider has no choice but to employ them and, if so, on what terms and conditions? Or are there compelling reasons for the customer and service provider to commercially agree such employee transfer?
These are only some of the questions that arise. And they are not answered easily, nor are they answered uniformly across different jurisdictions. Our expanded 2018 Global Outsourcing Employment Handbook provides high-level answers to these and other questions for 24 jurisdictions. It is intended to help gain a basic understanding of the key issues to consider and to provide an overview of how these issues are dealt with in the different countries.
Click the button to download a copy of the handbook. Please note that the document is currently only available in electronic format.