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Lecture 9

M H R 300 Lecture 9: International MHR (2/14)


Department
Management and Human Resources
Course Code
M H R 300
Professor
Min Li
Lecture
9

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Contract vs Relationship
Contract
Short and binding
Legal document
Relationship
Long and open
Ongoing
Friendship
Not formal/legal
Why outsource employees?
Do not have to give them benefits
Avoid social security and income taxes
Problems?
Lower level of control and supervision
Dangerous
Problems of Honesty Tests
Employer not acting in good faith
You must tell the workers you are performing these tests in order for them to be legal
Employee at Will
Able to dismiss an employee at any time for any reason
Exceptions
Cant discriminate
Protection of whistleblowers
Public policy exception
Following public interest
Not acting in good faith
Promise was made that a dismissal decision would have a cause
What is the relationship between severance pay and excessive use of temporary contracting in
Europe?
Hire temporary workers to avoid large dismissal costs
Solutions?
Denmark-Justification
Termination interview
Austrian-Pension Fund
Small contributions
You get paid through savings account
Social insurance system
Total Returns
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