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is often an unexpected event, the company may not have a role for the employee upon their return, again risking the loss of the employee. This is an all too typical result, costing the company a valuable employee and its million-dollar investment.
CROSS-BORDER CONSIDERATIONS In addition to financial considerations, there is a tax compliance element that is triggered by the first move – whether it is a traditional assignment or business travel, with both composing a similar risk pattern. It is a known fact that tax authorities are increasingly focusing on compliance. Companies that don’t have in-house mobility function often get caught off-guard due to failure to meet with stringent and complex regulations associated with cross-border employee movement. To top that, the function of global mobility is seldom defined clearly in growing organisations, making it a hot potato between finance, tax and human resources departments. Regardless of where the responsibility lies, it is important to ensure that:
• Aspects of global mobility are considered during all decision- making processes to avoid surprises
• Tax and immigration requirements are met to minimise financial and reputational risks
• Adaptable policies are created to achieve a consistent approach.
With the onset of artificial intelligence, technology offers certain solutions. These can assist with both data collection and analytics, facilitating mobility support. The tools can be personalised to create enhanced experiences for employees, providing real-time data access to employers, which enables organisations to make informed decisions to mitigate the risks posed by cross-border travel. However, digital technology cannot replace an expert’s know-how
of the complex regulatory environment. The mobility experience for employees and employers alike is heightened by such human support. Technology eases the burden of data management, but a sound personal-touch support system is essential for the satisfaction of globally active employees. Companies should arm themselves with the knowledge and expertise of specialists to streamline global mobility strategies that align with the company’s business and talent- management goals. The result would be a global mobility programme as a strategic asset to the business – one that functions intuitively is simple, cost-effective, consistent and relatively easy to administer.
IMMIGRATION COMPLIANCE For companies competing for talent on a global scale to enter new markets, it is important that they get immigration right the first time around, given its highly complex process. It cannot be more apt for fledgeling companies taking their first steps into an overseas territory, that they achieve a satisfactory standard of global immigration compliance. Whether relocating a senior executive or an entire team – on
a temporary or permanent basis – the process is extremely time- sensitive and must be handled efficiently to minimise the impact on the business and the lives of the people involved. The element of immigration compliance is triggered by the first move, even in cases of short-term business travel. More than ever before, government authorities worldwide are
taking a more intensive approach towards immigration compliance, introducing a regime of higher penalties for non-compliance. Consequentially, immigration compliance is a top priority for employers and their foreign national employees, as even unintentional violations are actionable, ranging in scope from monetary penalties to criminal
liability. In some countries, repeat offences can bar all future employee transfers. Companies must realise the importance of meeting all aspects
of immigration compliance, related laws and regulations to prevent government immigration controversies and should look at:
• Evaluating long-term and short-term assignment programmes • Establishing internal procedures to maintain immigration compliance in all jurisdictions in which employees have been deployed
• Robust programme administration and policy formulation • Business Visa compliance. As a rule, business visitors are restricted to attending meetings, conferences, seminars, interviews, speaking at a conference on a one-off basis, and negotiating and signing deals and contracts. They must not be paid in the host country.
When a company decides to reach out into a foreign jurisdiction and deploys an employee from its home location, a variety of important immigration factors must be reviewed, analysed and documented:
• Appropriate work and residence permits may be required prior to the assignee legally assuming their role; the criteria for such applications may vary by location depending upon the duration of the assignment, the employee’s nationality and a host of other factors
• In most cases, the company is required to have a legal entity or physical presence in the host location to facilitate work permits.
EXPERT GUIDANCE Meeting the needs on an ongoing basis for a globally mobile workforce can be complex. The requirement for global mobility is irrespective of the size of the organisation, as it stands as the go-to strategy to address talent scarcity and business growth in this global competitive landscape. Since basic aspects of relocation, immigration and tax compliance are triggered with the first employee deployment and, given the associated risks of non-compliance, engaging the appropriate external resources to provide legal and compliance expertise establishes base guidelines for moving forward. As organisations grow from their 1st to 50th move, they can shift
gears and focus on tax and relocation policy to achieve consistency, outsourcing of immigration handling for economies of scale and family assimilation programmes to increase employee integration and retention. With the first move, however, proceed with caution and expert guidance.
Rahul Batra Managing Partner Hudson McKenzie
rahul.batra@
hudsonmckenzie.com
Dinesh Jangra Partner, Head of Global Mobility Services Crowe, UK LLP
dinesh.jangra@crowe.co.uk
Nupur Rishi Director, Global Mobility Tax Crowe MacKay LLP, Canada
nupur.rishi@crowemackay.com
Gail Rabasca Executive Vice President Chamness WorldWide
gail@chamnessrelo.com
ABOUT CHAMNESS WORLDWIDE Chamness WorldWide has been delivering high quality global
relocation services for over 30 years and
specialises in destination services inbound, outbound and country to country across the Americas, EMEA and Asia Pacific. The company offers a worldwide educational consulting coverage supported by next- generation technology.
www.chamnessrelo.com
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