Managerial Training: Ensuring HR Compliance

As HR specialists know, compliance is everything when it comes to keeping a business up and running.

The importance of employee retention strategies for startups can’t be overlooked. Employee retention can make or break your company’s expansion plans. Similarly, a nuanced understanding of labor laws and regulations are vital.

Failing to comply with local, regional, national, and even international employment laws can lead to hefty fines, costly mistakes, and even criminal prosecution.

One of the best ways to avoid these negative outcomes is for businesses of all sizes to require their managers to take HR compliance training courses for managers in Europe. These online courses are designed to provide an overview of the various employment laws in the areas in which you operate.

Most of the time, compliance training is provided by law firms and legal organizations in the country where your organization has a presence.

A manager attending an HR virtual training on her laptop

Image from Canva

What Is HR Compliance Training

Compliance training plays a key role in your company’s operations.

Specifically, it contributes to:

Compliance Issues for European Companies

Companies operating in Europe must abide by specific compliance requirements. You will need to find an HR compliance course for management that is specific to businesses that operate entirely or partly in Europe.

This is often done on a country-by-country basis, as the laws vary from location to location.

Let’s take a look at a handful of the unique HR compliance challenges that European companies have to deal with. If you are an US or UK company that is expanding into the EU, you will need to be aware of each of these rules.

The Work-life Balance Directive

The EU Work-life Balance Directive went into effect in August 2019 and required compliance within three years.

The directive aims to modernize outdated legal frameworks in the EU. Specifically, it establishes:

  • Policies related to parents and carers
  • Equally shared parental leave between men and women
  • Methods for improving women’s underrepresentation in the workforce

EU employers must be compliant with the Work-life Balance Directive to avoid penalties. Additionally, violating these policies opens you up to costly lawsuits, and it will be much harder to recruit top talent if your reputation takes a tumble due to non-compliance.

Laws governing holiday leave, paid leave, and other benefits

All EU countries are required to abide by certain laws regarding holiday and paid leave, as well as other benefits.

Some examples of these laws and expectations:

  • Employees are entitled to 4 weeks of minimum paid annual leave
  • The average total of annual leave and public holiday leave in the EU is 34 days
  • Employees are likely to expect “work perks,” such as private healthcare, gym memberships, paid time off, compassionate leave time, and paid public transport passes.
  • Employees have a right to join unions and work councils and to participate in collective bargaining

Payroll administration laws

The majority of European businesses operate with monthly payroll, although there are a few exceptions. (For example, agriculture and hospitality are two industries where biweekly payroll is acceptable.)

Additionally:

  • Payroll must be accompanied by a payslip issued directly to the employee
  • Employers must include local languages on the payslips

Note: if you have employees in France, your payroll compliance is quite intensive, as the French payslip includes up to 40 lines of text and numerous deductions.

European work permits

Ensuring that all of your employees have work permits is an important – but complicated – part of HR compliance.

Your compliance training course for managers should address the importance of work permits for all international workers in your company, both in and out of the EU. The compliance training program doesn’t necessarily need to train every manager on every country’s work permit policies, but it should direct managers to where they can find the information that is relevant to their specific needs.

Some facts about European work permits:

  • EU citizens don’t need a work permit to work in the EU
  • Everything else is country-by-country
  • To hire a third country employee in France, use the French “passeport talent”
  • To hire a third country employee in Germany, the new hire must have a green stamp approval from the Federal Employment Agency
  • In Switzerland, third country employees need government permission before they can begin work
  • Hungary requires all third country employees to be approved by the Hungarian Labour Office

If your compliance training course does not provide a detailed overview of each country’s work permit requirements, reach out to HR specialists like Europe HR Solutions who can manage this part of your compliance for you.

Data privacy and the General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) applies to all businesses that operate in the EU and handle the personal data of EU citizens.

Because HR departments handle a lot of personal data for their current employees, past employees, and job applicants, they must be fully compliant with how to store, transfer, delete, and manage this data.

Non-compliance opens you up to major data protection liabilities. Penalties for GDPR violations include a fine up to 10 million euros or up to 2% of the global turnover of the previous fiscal year. You will be charged whichever is higher. Training courses for managers can help you avoid the mistakes that can lead to these penalties.

To comply with the GDPR, be sure to take the following steps:

  • Appoint a Data Protection Officer (DPO), which can be an individual in your corporation or an outsourced individual or agency
  • All privacy policies must align with GDPR requirements
  • Your payroll management software must protect all stored individual data
  • Data breaches must be reported to the appropriate supervisory authority within 72 hours of learning about the breach
Three people in a conference room discussing about HR compliance training

Image from Canva

How to Find HR Compliance Training in Europe

To find a solid European HR compliance training program for your managers, you will likely need to find a course offered by a law firm in each country where you are expanding.

Another option, of course, is to outsource your HR processes to a company like Europe HR Solutions. We have helped numerous companies expand into Europe, and we ensure that all of your operations are compliant with all EU and national laws.

Maintaining full compliance with the laws of a new country–or multiple countries–is a big task! Contact us today to find out how we can help.

Business owner surrounded by paperwork, indicating the need for HR outsourcing

How outsourcing HR can save money

If you own a small or mid-sized business, you understand how frustrating it can be to spend time and money on tasks that don’t generate revenue. The costs of building an HR department from the ground up can prove astronomical. 

When you’re launching your small business in a foreign country, especially, you’ll need HR solutions before you open your doors for daily operation. Europe HR Solutions can help.

 

The right outsourced HR team can reduce your ongoing costs in the following ways:

  • Payroll administration:

By outsourcing your HR, you can bring in vetted professionals to set up and administer your payroll system. This team can train you to ensure a seamless transition after their service contract is completed. 

You won’t have to stress over hiring long-term employees to take care of payroll, or training payroll administrators.

  • Benefits implementation:

Your outsourced HR team can help you to select the right benefits software package and enroll the employees of your small business.

  • Human resources management:

Outsourcing your HR can prove to be a game changer for your overall human resources management, too. HR consultants contribute through a wealth of experience in compliance, employee relations, and recruitment.

This saves valuable time for small business owners, mitigates the risk of legal issues and delays in operations, and provides access to the latest industry best practices and trends.

When it makes sense to outsource HR for small businesses  

International companies with fewer than 50 employees are considered small businesses, and rarely expand to Europe with an inhouse HR team already in place.

For US and UK-based small businesses that launch European operations, there’s usually a CFO who oversees broad HR tasks. 

However, the CFO or other executives managing HR for a small business launch in Europe often lacks the country-specific legal and HR expertise necessary to ensure innovative solutions that reflect the country’s best HR practices and legal compliance.

It’s important to consider the following when determining whether or not you should outsource your HR:

  • What specific HR services and support does your business require?
  • Do you have anyone on your team who’s well-versed in country-specific employee regulations and labor laws?
  • Will you need management compliance training and support?
  • Will your current employment handbook, policies, and procedures translate to adhere to the needs of employees in different countries?
  • Do you have a small HR department in place that may need help implementing payroll, benefits, training, and development?
Time is money. Outsourcing HR saves time, letting you focus on what matters.

What to expect with Europe HR Solutions

By outsourcing your HR, you may find it’s easier to take care of your daily operations and to strategize and prepare for the launch of your small business in Europe. Europe HR Solutions has supported countless small, mid, and large-sized businesses in their international HR needs.  

Whether you need our team to manage your HR and implement solutions, or you need us to help guide the HR professionals you have on staff, we can sweat the small stuff to ensure your big picture remains intact. 

You can expect Europe HR Solutions to do the following:

Act as your representatives:

We’ll act as an extension of your small business. This means we will collaborate with you and ensure we’re promoting your vision and standards in any HR matters we handle for you.

Ad hoc requests:

We understand that you may have ad hoc requests. We’re used to fast-paced, high pressure situations, and will ensure your needs are met in a timely manner.

Assist with HR strategies:

We’re committed to providing HR services that help your business grow and succeed. We’ll make certain that the innovative solutions we offer adhere to your overall business and HR strategies.

Create and implement policies and procedures:

We’ll strategize with you to create and implement your company’s policies and procedures and ensure details are in place that will help your employees thrive and create a positive work environment.

Handle employee contract needs:

We’ll help to create and manage your employee hiring processes (including talent acquisition, interviews, and onboarding checklists), employee complaint procedures, performance reviews, and off-boarding processes.

Legal compliance:

Europe HR Solutions will use our thorough knowledge of the various nuances in employment regulations and labor laws to keep your operations, policies, and procedures within legal compliance. This will help reduce your liability risk should issues with employees arise.

Manage employee and management training and development: 

We can cover government-mandated and specific position training programs to support your employees to work with excellence and grow in their positions. This includes compliance training for managers.

Recruitment: 

We can utilize the latest in talent acquisition trends and industry best practices to make sure you attract the talent you deserve to fill your staffing needs. We want to help you to build the best team possible to create a positive work culture and  a productive team.

The cost of outsourced HR services for small businesses

When to outsource your small business’s HR could be determined by your available budget. The cost of outsourcing your HR may be an upfront expense, but in the long run, it can save you significant money and protect your revenue.

The services offered by Europe HR Solutions can vary in cost, and are dependent on the extent of service you require. We can determine the cost based on the scope of the project.

For example, you may need us to manage a specific, well-defined project that allows us to estimate the cost involved. However, you may require our services on a daily basis, for an extended period of time, or find you need support in an immediate HR emergency. This may mean we will need a retainer payment or charge for an hourly rate.

How to determine your HR outsourcing needs

Before you decide to outsource your HR, it’s vital to determine what type of services you require. It can be overwhelming to discern your needs, but reflecting on and strategizing about specifics can be beneficial.

Answering the following questions may help you to understand what services you require:

  • Do you need an outsourced HR professional who takes the time to know and understand your business, staff, and culture?
  • Do you need HR professionals who are available on a daily basis?
  • Are you in dire need of help with critical talent acquisition?
  • Do you require flexibility and a large scope of HR tasks?
  • Are your needs limited to legal compliance and knowledge?
  • Do you need help developing your workplace culture?
  • Do you need to overcome language barriers?
  • What are your long-term HR needs?

Other benefits of outsourcing your HR

Once you’ve determined when to outsource HR for your small business, you may find that it allows you to streamline your operations and focus on your overall business strategy.

This strategic move reduces your administrative burdens of managing payroll, benefits, and other HR tasks in-house. The cost-effectiveness of outsourcing becomes evident as it eliminates the need for investing in HR infrastructure and ongoing training. 

This newfound flexibility can enable your small business to adapt quickly to market changes and allocate resources more efficiently. Ultimately, an outsourced HR team becomes a strategic partner, and empowers you to prioritize your employees, enhance organizational efficiency, and thrive in the competitive European business landscape.

Contact Europe HR Solutions

Europe HR Solutions understands how crucial HR is to the foundation of any successful business. We can consult with you to determine when it’s best to outsource HR for your small business, and customize innovative solutions with you. 

Your HR needs remain our greatest priority, and we want to support you in ways that promote legal compliance and allow you to see your small business dreams come to fruition. 

Connect with Europe HR Solutions today for a free consultation and be sure to check out our blog for the latest HR insights, tips, and trends. The road to success for your small business is just an HR step away.

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    Author

    Inez Vermeulen

    Inez Vermeulen

    Inez Vermeulen is the Founder and CEO of Europe HR Solutions, with over 25 years of successful corporate and entrepreneurial experience in various global industries. She has helped grow and expand the European divisions of global companies such as Coca-Cola Company, Regus, DHL, American Medical Systems, etc. Inez has received several company awards for her entrepreneurial spirit and success.

    She owns a Bachelor’s degree in French, History and Latin, several HR global expert certifications, a Master’s degree in Metaphysical Sciences, ICF Coach Certification and has completed her Doctorate on Transformational Leadership. Inez is fluent in Dutch, English, French, Italian and German. She works in partnership with an extensive international network of independent & professional companies and resides in Belgium near Brussels with her husband Jan.