PLANNING AND MANAGING
EXPATRIATE AND TCN ASSIGNMENT

     
 
 

In an era of increasing globalization and off-shore outsourcing, international assignment of expatriates and TCN's has become a competitive necessity. As our multinational clients rethink their expatriate programs for increased efficiency and cost effectiveness, our consulting teams assist in the important areas of

   

• Expatriate employment law and contracts
• Host company formation/immigration
• Expatriate employee and family benefits
• Structured staff coaching and preparation
• International travel accident/medical insurance
• Expatriate total compensation and allowances
• Tax preparation and equalization
• Expatriate programs and policies

 
 
     
   
         
           
 
             
 
ISSUES OF EXPATRIATE AND TCN ASSIGNMENT
 
Expatriate and TCN
Development and Coaching

    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.
 
       
   
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.

 
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.

 
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.

 
   
           
 
Policies
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Expatriate
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Coaching
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Expatriate
Benefits
 
 
           
     
   
     
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