“ The choice of policy used must be considered very carefully. It is a false economy to use transfer policies that are too light in terms of support.”


packages may not necessarily save the organisation money. However, they do have the advantage that they reduce the visible ‘expatriate status’ associated with traditional home-based balance sheet packages.


OTHER HOST COUNTRY-BASED POLICIES In recent years, there has been a growth in the use of so-called ‘one-way’, ‘one-way plus’ and ‘local plus’ transfers. In the past, these were often grouped together and considered as permanent transfers. Today, the terms are far more clearly differentiated. A permanent transfer was not considered to be


an assignment. Rather, it referred to filling a position permanently in another country with a non-local person. No return to the home country was expected to take place. Permanent transfers attracted a compensation


package based on local terms and conditions, although employers did support the move itself with the necessary costs of moving addressed in policy. (For example, airfares to get there.) Today, the label ‘permanent transfer’ is used far less often. The term ‘one-way transfer’ has become more commonplace.


ONE-WAY AND ONE-WAY PLUS TRANSFERS The term one-way transfer recognises that a move may not be permanent. Rather, it demonstrates that the employer is supporting the move only in one direction and that the move is not anticipated to end with repatriation. Employees on one-way transfers receive local pay, pay local taxes and their social security and retirement benefits are local, too.


38 While repatriation is not anticipated, one-way plus


transfers are so-called because the transition period in the host location is supported by employers. In essence, a limited ‘plus’ element is added into the costs for employers to ensure a smooth transition. This might include, for example, temporary living. Again, salary is host country- based, taxes are paid by the employee locally, and social security and retirement benefits are local. It is important to note that in the case of one-way/


plus transfers, there is some mix in practice with respect to social security and retirement benefits. Where there are social security totalisation agreements in place, some employers do keep the employee in the home country scheme. Social security is an emotive issue and has long- term consequences. Although a one-way/plus transfer is more likely to mean a transfer into the local retirement plan, again some employers do keep employees home- based for this benefit. International pension plans might also be used. For both these transfer types, tax briefings and tax


preparation assistance might be given. Typically this is only for the first year so that the employee can enter the new tax system appropriately. One-way/plus transfers are not only used for moves


where no return is envisaged. Such a policy might also be applied to volunteer/employee-initiated moves or as a low-cost option rather than richer policy provision flowing from host-plus or home-based reward systems.


LOCAL PLUS TRANSFERS A further approach is the use of local plus compensation arrangements. Under these, repatriation is not expected and so salary, taxes, social security and retirement


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