In posting workers, companies face a choice of assignment structures, each with advantages and disadvantages.
The assignment approach: employment is based on the home employment contract or an addendum.
Pro: Simplicity. The employee can be easily repatriated after the assignment ends.
Con: The approach cannot be applied in all country combinations.
The suspension approach: the employee has both a home and a host employment contract.
Pro: The employer will most likely comply with requirements of the home and host countries.
Con: There may be two active employment contracts on which the employee can rely, creating a risk of double payments (e.g., severance and holiday salary).
The termination approach: the employee only has a host employment contract; the home contract is terminated.
Pro: The employer will most likely comply with requirements of the host country.
Cons: Standardization is impossible. Repatriation is troublesome. Accrued employee rights will not continue.