Written Assignment 6:

Differences in Leave Regulations in Madagascar and USA and the International Corporate

Employment Policy

University of the People

BUS 5511: Human Resource Management

Dr. Eiesha Williamson

Wednesday 13 March 2024

 Employment regulations are essential in order to ensure that companies respect human

and employee rights and those regulations vary according to each country. Globalization has

pushed countries to expand their operations in different countries, so it is important for those

companies to understand the labor laws that govern the countries they operate in, to avoid

lawsuits and legal implications. In this essay, I will compare and contrast the labor regulations in

my country, Madagascar and the United States and will focus on leave benefits for employees.

Madagascar and the United States are similar in the work conditions, with a requirement of 40

hours per week of work, a compensation for overtime and higher rates for night shifts. But there

are differences in the leave benefits that employees receive.

Employment Benefit: Leave Regulations in Madagascar

In Madagascar, according to the Labor Law Organization, employees on a permanent

contract are entitled to 2.5 days of leave per month, a total of 30 days per year. Leave cannot be

taken within the first year of work, unless the employer allows for a special permission. Once the

first 12 months of work are accomplished, the employee must take the first 15 days of leave

within 3 months and the remaining 15 days can be taken at any time, alternatively. Remaining

leave days can be accumulated over the course of 3 years and taken at any time, with prior

arrangement with the employer (Madagascar Code du Travail, 2004). For employees on a

temporary contract, which is a contract limited to less than 2 years, they are entitled to 5 Personal

Days a year, but no annual leave. Employees are entitled to at least 5 paid sick days.

Women are entitled to a maternity leave of 14 weeks, with the possibility of an extension

of 3 more weeks if the necessity is proven. The employee is required to inform the company

within the first 3 months. The leave can be taken as early as 1 month before the due date. The

employer is required to pay the employee an extra half-monthly salary, through the Social

Security Service. Upon their return to work, women are entitled to 1 hour per day of

breastfeeding allowance during 15 months. So for the first 15 months back, women are expected
to work 7 hours a day instead of 8 hours. They have to inform their supervisor of how they would

like to benefit from this arrangement: by starting work 1 hour later or leaving 1 hour earlier.

Discrimination against women based on these benefits can be subject to legal matters. Men are

entitled to a paternity leave of 3 days, starting on the day of childbirth and up to 10 days of

personal leave for matters related to family.

An annual, 13th month performance-based bonus is common in Madagascar, depending

on the evaluation scale of the employee (PEO & Employer of Record in Madagascar, n.d).

Employment Benefit: Leave Regulations in the United States

The Fair Labor Standards Act “does not require payment for time not worked, such as

vacations, sick leave or federal or other holidays; these benefits are matters of agreement between

an employer and an employee” (U.S. Department of Labor, n.d). However, in the U.S, each state

also has different laws and regulations. So far, 11 U.S States including California, Colorado, New

York and Washington have passed the paid family and medical leave laws. According to research

by the Bureau of Labor Statistics, only 24% of private sector employees have access to paid

family leave (Weston, 2023).

According to the Family Medical Leave Act (FMLA), women are entitled to 12 weeks of

unpaid maternity leave. The FMLA seeks to promote equal employment opportunities for men

and women. There are no federal laws for paid sick leaves but employees can also be entitled to

12 weeks of unpaid leave, if they have worked for their employers for over 12 months, for

reasons such as caring for a direct family member, health conditions and adoption procedures

(U.S. Department of Labor, n.d). In California, for example, it is up to the employer to determine

whether the leave will be paid or unpaid. Paid leaves work through an insurance system, where

the employee and employers contribute a percentage of the payroll to the insurance and the

insurance system pays the employee when the benefit is needed.

International Corporate Employment Policy

In order for a company to go international, laws from all countries they want to operate in

have to be understood and respected. In this case, the regulations regarding leave benefits in

Madagascar and the United States are significantly different, so the employer has to carefully

cover the gaps between the two. A cross border, international employment policy has to be

drafted to guarantee equal treatment of employees, regardless of where they are located. It is

important for companies to adopt ethical practices across their offices and one way to bridge the

gap is to adopt an international policy to ensure that the same standards apply to all employees,

no matter where they are located (Talibart & Sinclair, 2008). It is more efficient to take the

greatest benefits from both laws in the US and Madagascar and combine them into one policy

that fits all employees. The HR team should identify the challenges associated with existing

regulations and identify new policy goals to improve the employment benefits of all their

workforce. The following would be included in the International Corporate Employment Policy:

● All employees across the company will be entitled to annual leave, the number of leave

days will be dependent on the type of contract and job requirements, as discussed with the

employer

● Parental leave is available for parents, for childbirth, adoption or foster care for up to 14

weeks. Appropriate documentation is required in order to determine the number of weeks

allowed, in accordance with laws.

● Employees will receive their regular salary and benefits during approved leave periods.

Paid leave is subject to revision based on the length requested by the employee

● The leave policy will be reviewed periodically, in compliance with local and state

regulations.

There are however necessary steps to take before implementing the international policy.

First, the HR team should conduct research and analysis and consult the labor law offices in both

countries with the proposal of the international policy and check that it complies with the
necessary regulations. They should also meet with trade unions, work councils and employee

representatives to ensure transparency and accountability (Talibart & Sinclair, 2008).

Furthermore, in this case, the mid-size company in Madagascar plans to expand to the US so they

need to set up an employment office that represents the company in the US to ensure clear

communication between the company and the employees that will be hired for the new

expansion. The International Policy has to go under legal review before being shared to the

employees and put into effect. Another important step before implementation is evaluating the

available finances and budgets, before making promises to employees. An evaluation of the tasks

and operations required in the new location is also essential, to determine the feasibility of

allowing certain leave benefits for all employees. Finally, before implementing the new policy,

the HR team should communicate the major changes and conduct meetings across the company

to ensure that the employees understand the policy and its implications. They should be open to

feedback from employees and make the necessary adjustments accordingly.

Conclusion

Dealing with international laws and regulations is complicated because countries have

different requirements and companies have to ensure that they comply with the local and state

laws, to avoid being sued. Establishing an International Employment Policy that caters to

requirements from various countries is a delicate task and it has to ensure that the employee

benefits and rights are not removed but enhanced.

References

Madagascar Code du Travail. (2004). International Labor Organization. Retrieved from:

https://www.ilo.org/dyn/travail/docs/695/Mada%20-%20Code%20du%20travail.pdf

PEO & Employer of Record in Madagascar. (n,d). Employment contracts in Madagascar.

Retrieved from: https://www.globalization-partners.com/globalpedia/madagascar/eor/

Talibart, P. & Sinclair, E. (2008, June 1). International employment policies - issues arising from

drafting and implementation. Practical Law. Retrieved from:

https://content.next.westlaw.com/practical-law/document/I59dd3433ef2a11e28578f7ccc38dcbee/I

nternational-employment-policies-issues-arising-from-drafting-and-implementation?viewType=F

ullText&transitionType=Default&contextData=(sc.Default)

U.S Department of Labor. (n,d). Family and Medical Leave Act. Retrieved from:

https://www.dol.gov/agencies/whd/fmla

Weston, M. (2023, January 5). The state of paid family and medical leave in the U.S in 2023.

Retrieved from:

https://www.americanprogress.org/article/the-state-of-paid-family-and-medical-leave-in-the-u-s-i

n-2023/