An Example of an Overseas Employment Agreement

As some of you know, in the mid-1990s I lived and worked in China.

I was recently going over some old files and ran across the old employment agreement I used to keep myself afloat while living overseas. For the benefit of those of you considering employment overseas, you might find it helpful to have a look at this. I am pasting the language for this contract below my signature line after the end of this article.

USE THIS FOR REFERENCE ONLY

Keep in mind first and foremost that I am not a lawyer, barrister, attorney, nor am I otherwise authorized to offer legal advice. I used my employment agreement in a high-risk environment in a place and time where any written documents could have conceivably meant nothing.

Also, know that I went there as an independent contractor in the frontier days of doing business in post-Nixon China, a time when such arrangements were possible. Nowadays, these matters all seem to be handled through employment agencies or rigidly formalized human resource channels.

Most employers would find the language in the agreement I share here unacceptable, or they will wish to use the language they have in existing employment agreement forms which they may wish you to sign. In this case, the words I provide below can still be quite useful: review the words I provide and develop a list of questions which you may find missing in the agreement that your prospective employer would have you sign.

WHAT DOES YOUR PROSPECTIVE EMPLOYER OFFER?

Does your would-be employer's agreement cover:

- Relocation expenses to and from the destination overseas?

- How you will get paid? In local currency or your home currency? A little of both? Into your personal bank account? As a foreign currency check drawn on a local bank?

- Unexpected employment taxes imposed on you by the local government?

These are a few of the many things covered in the language I used in my employment agreement. Feel free to review this for yourself and pass it on.

BON VOYAGE!

Good luck in your negotiation, and have fun while overseas. If you've not been "over the pond" before, it may very well change your life - it certainly has enriched mine... ;)

Employment Agreement

1.0 Definitions

1.1 Agreement made, effective as of DATEDATEDATEDATE, and valid through to and inclusive of DATEDATEDATEDATE, by and between

(your name)

(your address)

telephone

email

a corporation duly organized and existing under the laws of XXXXXXXXX, hereinafter referred to as "Corporation," and (your name here), whose United States of America Passport number is currently #XXXXXX, hereinafter referred to as "Employee."

1.2 Corporation and Employee are hereinafter referred to as "Parties."

1.3 "Project" or "projects" hereinafter refer to any and all issues of business which are assigned to or initiated by the Employee, with such project(s) being subsequently followed through or monitored by Employee.

2.0 Recitals

The Parties recite and declare:

2.1 Corporation is desirous of employing Employee to work for it.

2.2 Employee is desirous of entering into the employ of Corporation.

2.3 For the reasons recited above, and in consideration of the mutual covenants contained within this Agreement, Corporation and Employee agree as follows:

3.0 Term and Placement of Employment

Corporation hereby engages Employee at XXXXXXXXXXXXXXXXX (company's home address), City of Shanghai, Province of Shanghai, People's Republic of China, hereinafter referred to as place of employment, and Employee hereby agrees to serve Corporation as a XXXXXXXXXXXXXXX(Describe job) for a period beginning from and including DATEDATEDATE throughout and including DATEDATEDATE.

4.0 Hours of Duty

4.1 Employee shall work during the regular and reasonable hours of the department in which he is employed, such regular and reasonable hours being defined as and not to exceed 44 hours per week.

4.2 On occasion Employee shall be required to work in excess for 44 hours per week as his duties require.

5.0 Termination of Duty

5.1 If the work for which employee has been engaged has been terminated by Corporation, then Corporation shall provide with immediate effect to the Employee:

5.1.1 a letter on Corporation's letterhead bearing the company's official business stamp, signed and dated by an authorized officer of the Corporation. Such letter shall state that Employee's employment has been terminated.

5.1.2 all salary due to Employee up to and including the date of termination.

5.1.3 in addition to all commission(s) and salary pursuant to this Agreement earned by Employee up to and including the date of termination, a severance pay equivalent to four (4) month's worth of Employee's monthly salary. Such severance pay and commission(s) are to be paid by the Corporation to the Employee in accordance to the method of payment described herein.

5.2 All commission(s) for pending projects shall be paid by Corporation to Employee in accordance to the section of this Agreement entitled "Commission and Calculation of Comissions" until the completion of any project(s) which have been assigned to or monitored by Employee if such projects continue to be active after the time of Employee's termination.

6.0 Salary

6.1 Corporation agrees to pay Employee monthly in arrears at the end of each month, a salary at the rate of US$ XXXXXX per month.

6.2 Corporation shall never be entitled to reduce, suspend, or delay payment of salary to Employee.

7.0 Commission and Calculation of Commissions

7.1 Corporation agrees to pay Employee monthly in arrears at the end of each month, a salary at the rate of US$ XXXXXX per month.

7.2 The method of calculation of Employee's commission is as follows:

7.2.1 xxxxxxxxxxxxx

6.2 Corporation shall never be entitled to reduce, suspend, or delay payment of commission(s) to Employee.

8.0 Method of Payment

8.1 In consideration of the Employee's services during the period of employment under the terms of this Agreement, Corporation agrees to pay upon Employee's request all of Employee's salary and commission(s) in one of, or in any combination of, the following methods:

8.1.1 In United States of America Dollars cash;

8.1.2 In Chinese Renminbi yuan cash;

8.1.3 By electronic telegraphic transfer ("TT") to one bank account as specified by Employee.

8.1.4 Corporation agrees to bear all costs and fees associated with any and all of the above payment methods.

8.2 In the case of payment in Chinese Renminbi yuan cash, Corporation agrees to pay Employee the designated portion of Employee's salary and/or commissions directly to Employee in accordance to the then current middle exchange rate as established by the Bank of China.

9.0 Vacations and Travel Expenses

9.1 During the first 365 days of employment with Corporation, Employee shall have the right to a vacation period of fourteen days (14) days with full pay and all other entitlements as described within this Agreement.

9.2 Following the first 365 days of employment with Corporation, and upon the completion of each successive 365 days of employment thereafter, Employee shall have the right to a vacation period of twenty-one (21) days with full pay and all other entitlements as described within this Agreement. Additionally, for each such vacation period as described in this Section 9.2, Corporation agrees to provide at no expense to Employee one (1) round-trip economy class air flight ticket to, and from, any destination and place of departure in the United States of America so designated by Employee.

9.3 Over the passage of time, any such unclaimed vacation time and travel benefits described in this Section 9 may accrue without devaluation and shall be valid for any such successive Agreement into which Corporation and Employee may engage after the expiration of this Agreement.

9.4 If Employee has accrued unclaimed vacation, and Corporation or Employee decide to terminate employment or otherwise do not continue employment upon the completion of this Agreement (or its extension), then Corporation shall immediately pay to Employee a salary at full pay covering the entire unclaimed accrued vacation time in accordance to the section of this Agreement entitled "Method of Payment."

10.0 Holidays

10.1 Employee shall have the following designated holidays with full pay and all other entitlements as described within this Agreement: Christmas Day, Thanksgiving Day, calendar New Year's Day, Chinese New Year, and any other such holidays as designated by the Corporation and/or the national and/or local government entities of the People's Republic of China.

11.0 Transportation and Business Expenses

11.1 Corporation agrees to advance cash or other means of payment to Employee for any and all business and travel expenses associated with Corporation's business and Employee's activities. Employee may at any time present to the Corporation receipts or other written justification for such expenses, and Corporation agrees to reimburse Employee immediately upon Employee's presentation of such receipts or justification. Such reimbursement shall be made in accordance to the section of this Agreement entitled "Method of Payment."

12.0 Living Accommodations

12.1 Upon the Employee's initiation of employment with Corporation, all costs associated with Employee's relocation from his current residence in Shanghai to Employee's new place of residence shall be born in advance by Corporation. Such relocation shall include insurance for the full value of Employee's personal effects and the effects of Employee's family members (if any).

12.2 Corporation shall provide housing for Employee in compliance with any and all applicable laws, and by doing so also agrees to assume all legal and monetary liability related to such provision of such housing.

12.3 The net area of such housing shall be no less than 80 square meters, and shall not exceed net area 90 square meters unless company so agrees to provide housing in such excess without any cost to be born by Employee.

12.4 If such additional nett area requires that Employee relocate to new housing, then Corporation agrees to pay for any and all costs associated with such relocation.

12.5 Corporation may require Employee to permanently relocate to a new residence. Any and all costs associated with such relocation of Employee shall be born in advance by Corporation. Such relocation shall include insurance for the full value of Employee's effects. Pertinent to this section 12.5 only, all provision of relocation of Employee shall also be extended to any such family members which Employee may have or acquire during the course of his employ with Corporation, including such family members whom are acquired through marriage or birth.

12.6 Corporation may require Employee to relocate to a temporary residence for business purposes. Any and all costs associated with such relocation and all housing expenses of Employee (exclusive of family members) and his personal effects shall be born in advance by Corporation. Corporation agrees to retain, at no cost Employee, Employee's permanent housing in accordance to this Agreement until such time that Employee shall return to his permanent housing.

12.7 Regardless of whatever reason for any such relocation temporary or permanent, Corporation agrees to bear any and all costs for insurance of the full replacement value of Employee's personal effects, including but not limited to insurance covering storage and handling of personal effects, if applicable, with such replacement value not to exceed United States Dollars sixty thousand (US$60,000).

13.0 Taxes and Documentation

13.1 Any and all taxes and fees imposed upon the Employee at the place of employment, including but not limited to any and all employment taxes imposed by any entity of The People's Republic of China, shall be paid in full by the Corporation without cost to the Employee.

13.2 Any and all documentation pertaining to Employee required by any government agency of The People's Republic of China, shall be provided by the Corporation and all costs pertaining to the acquisition of which shall be made in advance by Corporation without cost to the Employee.

14.0 Time and Energy

14.1 During the term of this employment, Employee agrees to devote his reasonable time, energy, and skill to the service of the Corporation and to the promotion of Corporation's interests and not to accept any other employment or engage in any outside business or enterprise.

15.0 Compliance with Management Rules

15.1 Employee hereby undertakes and agrees to comply with and abide by all general regulations and instructions from time to time issued by the Corporation, including those governing hours and conditions of work, and to obey all safe and lawful orders given by Corporation, its manager, or other duly authorized person or persons and to conduct himself at all times in such a manner as not to bring discredit on Employee or Corporation and to abide by all laws of the country and locality in which the Employee is working. Employee is further forbidden to engage in local politics.

16.0 Disclosure of Information

16.1 Employee shall not during the term of his employment Agreement or thereafter, disclose any information relative to the business or affairs of Corporation to anyone except those Employees or Corporation who are entitled to receive such information.

17.0 Pay and Medical Care in Case of Illness

17.1 Employee's right to full compensation of salary and commissions in any individual instance of accident or illness attributable to the work for the Corporation shall continue for any individual instance of accident or illness in full effect in accordance to this Agreement, with such period of continued payment not to exceed six (6) months. If at the end of such period, Employee is still not able to resume work, Employee shall no longer be eligible to receive salary payments but shall be eligible to receive commission payments in accordance to this Agreement, with such commission obligations to continue indefinitely until satisfied in full in accordance to this Agreement.

17.2 Transportation of Employee to and fees for an appropriate expatriate medical care facility, including whether such medical facility is located in the People's Republic of China, in any individual instance of accident or illness whether or not such individual instance of accident or illness is attributable to the Employee's work shall be made in advance by Corporation without any cost to Employee for up to United States Dollars one hundred thousand (US$100,000) for any such individual instance of accident or illness.

17.3 In the event that Employee is instructed by Corporation to work in an area where vaccinations or immunizations are advised for the continued good health of Employee, then Corporation shall provide all such vaccinations or immunizations at no cost to Employee.

18.0 Discharge for Cause

18.1 Corporation may discharge Employee for incompetence, intoxication, drug addiction, insubordination, and any violation of any rule or regulation that may be established from time to time for the conduct of the Corporation's business, for any failure of Employee to perform any Agreement, duty, or obligation of Employee under this Agreement provided that such Agreement, duty, or obligation is in compliance with any applicable law and does not bear any possible harmful consequences to the safety and well-being of any person.

18.2 If Corporation discharges Employee pursuant to the provisions of this section or for any reason referred to in this section, Corporation shall only be liable to pay to Employee his salary and commissions calculated to the date of termination of employment less the amount of any advances previously made by Corporation and not re-paid by Employee, and Corporation may collect any balance owed to it by Employee.

19.0 Termination of Agreement by Employee

19.1 Employee shall have the right to terminate this Agreement by giving sixty (60) calendar day's written notice to Corporation, or by giving to Corporation payment equivalent to sixty (60) calendar day's of Employee's current salary in lieu of such notice.

20.0 Termination of Agreement by Corporation

20.1 Corporation at its option may terminate this agreement other than for cause by giving Employee sixty (60) day's written notice, or by immediately providing to Employee payment equivalent to sixty (60) calendar day's of Employee's current salary in lieu of such notice.

20.2 If Employee is given notice of termination other than for cause during the period less than one hundred eighty (180) calendar days after commencing employment with Corporation, the amount of pay that the Employee shall be entitled to receive shall be computed as if Employee has continued in the employ of Corporation for one hundred eighty (180) calendar days from the date of Employee's hiring. Employee shall also be entitled to return transportation of his person and all of his personal effects in accordance to the "Return Passage" section of this Agreement.

21.0 Return Passage

21.1 Upon completion of Employee's full term of service under this Agreement, or upon termination of Employee by Corporation for any reason other than cause, or by Employee by any extension of the term of service as provided for in section entitled "Modification or Extension of Agreement," Corporation shall pay any and all necessary expenses of Employee's passage (and family members) to any destination in the United States of America as designated by Employee.

21.2 Upon completion of Employee's full term of service under this Agreement, or upon termination of Employee by Corporation for any reason other than cause, or by Employee by any extension of the term of service as provided for in section entitled "Modification or Extension of Agreement," Corporation shall pay any and all necessary expenses for the complete door-to-door removal of Employee's personal effects, and all those effects of Employee's family members if any, to any destination in the United States of America as designated by Employee.

21.3 Volume allowances for such return passage removal is as follows respective to each method of removal:

21.3.1 If such removal has a destination other than the People's Republic of China, then one removal by sea freight with a gross capacity allowance of one (1) forty (40) foot sea container.

21.3.2 If such removal has a destination within the People's Republic of China, then one removal by sea or truck freight with a gross capacity allowance of 60 cubic meters.

22.0 Modification or Extension of Agreement

22.1 No modification or extension of this Agreement shall be valid unless such is in writing.

22.2 If, on the request or with the consent of Corporation, Employee continues in his employment beyond the period of employment described herein, this Agreement shall remain in effect during continuance of such service.

23.0 Entire Agreement

23.1 This Agreement shall constitute the entire Agreement between the Parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except top the extent incorporated in the Agreement.

24.0 Governing Law

24.1 It is agreed that this Agreement shall be governed by, construed, and enforced in accordance with the laws of Hong Kong. Perchance that, during the term of this Agreement, Hong Kong laws shall fall sway to the laws of the People's Republic of China, then this Agreement shall be governed by, construed, and enforced in accordance with the laws of the County of Los Angeles, State of California, United States of America.

25.0 Waiver of Right to Transfer Venue

25.1 In consideration that this Agreement shall be governed by, construed, and enforced in accordance with the laws of Hong Kong, both the Corporation agrees to waive its rights for transfer of venue outside of the jurisdiction stated in Paragraph 24.1.

26.0 No Waiver of Effect

26.1 The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as thereafter waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no forbearance or waiver had occurred.

27.0 Effect of Partial Invalidity

27.1 The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the Parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

28.0 Duplicate Originals

28.1 This Agreement shall be executed in duplicate originals and both shall be considered valid.

29.0 This Agreement

29.1 The forgoing provisions are understood and agreed to by the undersigned.

In witness whereof, each party to this Agreement has caused it to be executed at Shanghai, People's Republic of China on the date indicated below.

Date:

Representative of Corporation and

Company Stamp

Date:

Employee

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