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Expatriate
and TCN
Development and Coaching
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•
Build vision into the organizational culture
• Pre - post assignment structured
programs
• Individual or group focus.
• Clarifying the goals - objectives
- mission.
• Addressing the culture and people fit.
• Sharpening the “vision blade”
• Ensure hitting the ground running. |
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Maintenance
of Employment Status of Expatriates
Expatriate
employees are invariably maintained as employees of the home
country employer. When this relationship is scrupulously maintained
in all important regards (ex. source of payment and benefits,
contractual provisions etc.) the employment relationship can
be expected to remain under home country labor law provisions,
and generally not fall under host country employment law.
Recent application of EU Posted Worker Directive 96/71 should
be considered in this regard however. This is generally of
benefit to US employers. However, a reasonable period of assignment
is assumed; long periods of assignment (perhaps 4 –5
years or more) may run the risk of “de facto”
employee status in the host country.
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Social
Security Totalization for Expatriates
After
employment in the host country for a period of time, the expatriate
may become liable for Social Security Social Insurance contribution
there while remaining liable for contribution in the home
country. To provide for relief from double social security
contribution, the many countries have concluded “Social
Security totalization agreements” with other countries.
This relief is very important given (a) the potential for
double contribution, and (b) the relatively little value of
the foreign benefit that may be derived.
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Payroll
and Payment Currency of Expatriates
It
is of vital importance that the employee remains on the home
country payroll; this is a key element of retaining home country
employment status, but employee will be subject to home and
host country tax. Generally it is advisable from the Company
perspective to commit to expatriate salary and allowance payments
in home country currency; the currency of payment should be
clearly established at the outset. The issue is one of currency
conversion risk. Most Company Favorable is commitment by the
company to home country currency payment, and the employee
bears conversion risk. Most Employee Favorable is commitment
by the company to local currency payment, and the company
bears conversion risk. |
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