U.S. approach to employee participation in strategic decisions - Answers Management has broad
flexibility to make strategic business decisions with little required employee input.
German approach to employee participation in strategic decisions - Answers German law gives
employees a formal role through works councils and two-tiered boards with employee
representation.
Works council - Answers A worker representative body, common in Germany, that participates in
decisions affecting employees, such as layoffs, plant closures, and M&A.
Two-tiered board system - Answers A corporate structure with a supervisory board that includes
employee representatives and a management board that handles day-to-day operations.
Japanese approach to employee participation in strategic decisions - Answers Japanese labor
relations emphasize cooperation between labor and management, and union leadership can serve as
a path to management.
Chinese approach to employee participation in strategic decisions - Answers Independent unions are
generally not allowed; unions must operate through the government-approved ACFTU, and the study
guide notes there is no right to strike.
U.S. approach to dismissal - Answers U.S. law generally treats jobs as non-entitlements, so employers
have much more freedom to terminate employees than in many other countries.
European approach to dismissal - Answers Many European countries treat jobs more like property
interests, with stronger dismissal protections and higher severance obligations.
Japanese approach to dismissal - Answers Japanese law may appear to allow dismissal, but courts
and social norms strongly discourage firing unless it is reasonable and socially acceptable.
Kochi Hoso Broadcasting Co. case - Answers Background: A Japanese radio announcer was fired after
being late twice to news broadcasts, even though company rules listed that as cause for dismissal.
Decision: The Supreme Court of Japan ordered reinstatement. Rule/Application: Even when an
employee technically violates a discharge rule, firing can be invalid if it is significantly unreasonable or
abusive under socially accepted views.
Assumption of employment arrangements in M&A - Answers In many European countries, a buyer
that acquires a business also inherits existing labor arrangements, including collective bargaining
agreements.
Employment discrimination law outside the U.S. - Answers The U.S. has more developed employment
discrimination protections than many countries, while EU and other systems are more limited but
expanding.
EU antidiscrimination law - Answers The EU has adopted protections against discrimination based on
race, ethnic origin, religion, belief, disability, age, sexual orientation, sex, and national origin.
Extraterritoriality in U.S. employment discrimination law - Answers Extraterritoriality asks when U.S.
employment discrimination laws apply to employment decisions made outside the United States.
EEOC v. Arabian American Oil Co. - Answers Background: A U.S. citizen hired in Houston was
transferred to Saudi Arabia and sued under Title VII after being discharged. Decision: The Supreme
Court held Title VII did not apply abroad because Congress had not clearly stated that it should.
Rule/Application: U.S. statutes are presumed not to apply extraterritorially unless Congress clearly
says so; Congress later amended Title VII so some protections apply to U.S. citizens working abroad
for U.S.-controlled employers.
Post-Aramco Title VII rule - Answers After Congress amended Title VII, U.S. employers and U.S.-
controlled foreign companies can be liable for discrimination against U.S. citizens working abroad,
unless foreign law conflicts.
Title VII and ADEA for noncitizens abroad - Answers Title VII and the ADEA do not apply to noncitizens
employed outside the United States.
Noncitizens functionally working in the U.S. - Answers A noncitizen physically outside the U.S. may
still be covered by U.S. employment law if the work relationship is functionally centered in the United
States.
U.S. employment laws that do not apply abroad - Answers Some U.S. laws have no extraterritorial
application, including NLRA, ERISA, OSHA, FMLA, and 42 U.S.C. § 1981.
Three defenses to U.S. employment law abroad - Answers The employer can argue the decision was
made by a foreign person not controlled by a U.S. employer, that U.S. law conflicts with foreign law,
or that a BFOQ applies.