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UK – Osborne Clarke issues guidance for companies with workers located in politically sensitive countries

20 August 2014

Multinational businesses with interests in hotspot areas will rightly be concerned about the risks posed to the safety and security of its employees, assets, and supply chains. This is not only a moral and business concern for multinational employers, but also a legal one.

In light of the recent upheaval in Eastern Europe and the Middle East, law firm Osborne Clarke has issued guidance for companies with workers located in unstable regions and geographies.

The law imposes duties on an employer to safeguard the health and safety of its employees and to provide them with a safe place to work. A failure to do either can lead to civil and/or criminal penalties being imposed and the associated legal processes in both the foreign jurisdiction and in the UK, which are likely to be labour intensive, costly and drawn out.

This may include risks not only to the business but also to company directors and managers personally and the risk of legal proceedings against those individuals abroad.

Whilst the risks associated with political instability, war and terrorism cannot be removed completely, there are a number of practical steps that multinational businesses can take to protect employees and assets and limit the potential effects on their operations in high risk areas.

It is crucial that businesses identify and assess health, safety and security risks associated with working abroad and have in place a plan which seeks to address those risks.

Some of the steps Osborne Clarke has advised its clients to consider as part of such a plan have included:

  • In the case of staffing companies who supply contract workers into hot spots, being very clear (with the contract workers/insurers/payroll partners/subcontractors/employment intermediaries) who has relevant control (from which legal duties of care stem, creating a legal obligation to manage risk) and who has contractual responsibility for the management of risk and who has responsibility for carrying insurance for key risks (and checking that that insurance is in fact in place). In practice we do not believe staffing companies should look to rely on local payroll partners/subcontractors/employment intermediaries, and should have their own plans and insurance in place.
  • Appointing a dedicated crisis team and liaison officer to assume control of any emergency and ensure that disruption to other areas of the business is minimised.
  • Where possible, putting in place transport, access to funds, legal assistance, and medical help for any affected employees.
  • Liaising with other employers in the region to assess the viability of a co-operative action plan for emergencies.
  • Providing employees with satellite phones or other technologies that can be used in the event of mobile network disruptions or power outages/failures.
  • Communicating regularly with employees to gain advice or provide information about changes to their situation.
  • Maintaining up-to-date contact, next of kin details, locations and travel plans for all employees. This will enable the business to quickly account for employees and to assist local embassies, consulates and foreign governments communicate with employees if it becomes necessary to evacuate.
  • Monitoring the situation regularly and being alert to changing circumstances or any escalation that might necessitate increased security or evacuation.

It is nevertheless important for businesses to ensure that they have the appropriate level of insurance in place when operating in high risk areas and for them to regularly review such policies in light of any changes in circumstances that might affect or necessitate a change in the level or scope of any cover.