{"id":91,"date":"2018-07-27T11:24:00","date_gmt":"2018-07-27T02:24:00","guid":{"rendered":"https:\/\/www.ebss.co.jp\/english\/?post_type=column&p=91"},"modified":"2026-09-01T13:16:52","modified_gmt":"2026-09-01T04:16:52","slug":"article_2018a001_09","status":"publish","type":"column","link":"https:\/\/www.ebss.co.jp\/english\/column\/article_2018a001_09\/","title":{"rendered":"#9\u3000Overseas IT Projects: Key Considerations for Local Labor Laws and Contracts"},"content":{"rendered":"\n

Hitoshi Goto<\/p>\n\n\n\n

Ukihiko Takagi<\/p>\n\n\n\n

In the previous article, we covered the differences in ‘warranty periods’ to watch out for in overseas projects. This time, we will look at key considerations regarding local labor laws and contracts.<\/p>\n\n\n\n

Multiple-Person Review System Is Essential for Contracts<\/h2>\n

In the previous article<\/a>, we gave examples of warranty periods, but in any case, having a general knowledge of civil law and labor law in the target country or region is a basic requirement for Global PMO.<\/p>\n\n\n\n

On top of that, a system where contracts are reviewed by multiple people, not just one person, is essential. In domestic projects, it may be left to sales or legal departments, but in global projects, that alone is dangerous.<\/p>\n\n\n\n

Of course, it is also necessary to go through the legal department or lawyers who specialize in overseas matters. Checking the contract wording itself involves legal knowledge from each country or region, making it difficult at the PMO level. Create a collective review system that includes legal experts.<\/p>\n\n\n\n\n

For Intellectual Property Rights, ‘Jurisdiction’ Is Also Important<\/h2>\n

Below, we will present several points regarding labor law and contracts. It is important to create contracts that take into account significant differences in business customs by country and region. Warranty liability was discussed previously.<\/p>\n\n\n\n

Another important matter in system development is the issue of intellectual property rights. While intellectual property ownership is often specified in contracts in Japan as well, specifying it is even more important overseas.<\/p>\n\n\n\n

Jurisdiction also becomes important for intellectual property rights. If there is a lawsuit over intellectual property rights, the case will be fought in the court of the jurisdiction specified in the contract, so if the jurisdiction is overseas, there is a risk of unexpected costs such as overseas business trips for court proceedings. For distant countries or regions like the Americas, this becomes a burden that cannot be ignored.<\/p>\n\n\n\n

It is also necessary to clearly establish which countries’ or regions’ labor laws apply. This is particularly important regarding overtime hours. In Brazil and Indonesia, monthly overtime limits are strictly enforced. On the other hand, in China, enforcement is relatively lenient.<\/p>\n\n\n\n

In Korea, similar to Japan, there is a tendency to work overtime to meet deadlines. Especially at the manager level, overtime is not felt to be much of a burden. That said, the basic principle in global projects is to schedule without overtime (and with buffer time built into the schedule).<\/p>\n\n\n\n

Two points regarding T&M (Time and Material) contracts. T&M contracts are an arrangement where you set the unit price in advance and then pay according to hours worked, used when you absolutely need to secure personnel for work with unclear scope. However, in China, there is no concept of T&M, and this approach cannot be used.<\/p>\n\n\n\n

Also, please note that overseas, it is normal for T&M contracts to have no deliverables. Rather, by the original meaning of the term, it is strange for T&M contracts to have deliverables. If the scope is clear, it should be a fixed-price contract, and overseas, this common-sense approach is commonly practiced.<\/p>\n\n\n\n\n

<< Read Part 8 of the Series<\/a> | Read Part 10 of the Series >><\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Hitoshi Goto Ukihiko Takagi In the previous article, we covered the differences in ‘warranty periods&#82 […]<\/p>\n","protected":false},"featured_media":36,"template":"","case_wall_type":[12],"case_business_area":[47],"class_list":["post-91","column","type-column","status-publish","has-post-thumbnail","hentry","case_wall_type-wall-7","case_business_area-business-area-6"],"acf":[],"yoast_head":"\n#9\u3000Overseas IT Projects: Key Considerations for Local Labor Laws and Contracts | EBSS English<\/title>\n<meta name=\"description\" content=\"This is the information column page of E.B. 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