Third Country National Long Term Assignment

Transcription

1 International HR Policy I. Employment Alison Blackburn, Sabrina Williams & Lucia Hackett A. Hiring Definition of Staffing Types An employee of the US home country organization (Tufts), working in the host country, for the benefit of either the home or host country organization on a short term basis (see below). Some allowances would also depend on whether they are junior, intermediate or senior level employees. An employee of the US home country organization (Tufts) or seconded by Tufts, working in the host country, usually for the benefit of the host country organization. Level of benefits varies depending on sub categories at senior, intermediate and junior levels. An employee of the host country organization (Tufts), who has relocated to a foreign country as a foreign national, either moving from one region of the world to another (Interregional secondees), or moving from one country to another within a region (Intra regional secondees). Benefits would also vary according to senior, intermediate and junior levels. Staff who are not hired to work on a permanent basis A local national who is hired from the host country labor market by the local organization, to meet local resourcing requirements. Some allowances would depend on being junior, intermediate or senior level employees. ******************** *Pay locals laborers under the table vs. cost of compliance An employee of the US home country organization (Tufts), working in the host country, usually for the benefit of the host organization on a permanent basis.

2 International HR Policy Duration/Notice Period Intended duration of generally between 90 days and up to one year (fewer than 90 days is typically considered business travel, except where the actual work being carried would lead to possible host country immigration and tax implications). An intended duration of between one and five years, often on an accompanied basis. (Consider localizing after five years). Notice period? An intended duration of between one and five years. Notice period? Any fixed term. Local notice period. Indefinite (may want to consider fixed term employment contract in certain cases). Notice period? Indefinite. Notice period? Notice period? Termination at conclusion of assignment TBD TBD TBD TBD TBD TBD Severance payments TBD TBD TBD TBD TBD TBD

3 International HR Policy B. Local Laws, Regulations and Customs Immigration US nationals require work visa in host location. US nationals require work visa. Tufts to sponsor, except when not necessary (i.e. not required for moves in European Community). Tufts to sponsor when possible. Tufts to sponsor when necessary and to also fund permanent residency application with claw backs. US nationals require work visa in host location. Employment Agreements/Contracts/Offer letters Continuation of US employment Continuation of US employment but risk of dual employment in host country Subject to host country law and likely to be either fixed term host country company employment contracts or permanent contracts. No Yes for most countries Permanent employee of host country recognizing prior home country service for Tufts as continuous. Background Checks, Reference Checking Process See Policy Guidelines for details. Statutory Benefits including medical sickness and family allowances Home country Home country Host country Host country Host country Host country. LOA

4 International HR Policy C. Relocation Expenses Settling in Allowance Xx Xx Xx Xx Xx Xx Relocation Travel Xx Xx Xx Xx Xx Xx Surface Shipment Xx Xx Xx Xx Xx Xx Air freight Xx Xx Xx Xx Xx Xx Freight insurance Xx Xx Xx Xx Xx Xx Time off for packing Xx Xx Xx Xx Xx Xx Temporary Accommodation Xx Xx Xx Xx Xx Xx Storage at host country Xx Xx Xx Xx Xx Xx Storage in home country Xx Xx Xx Xx Xx Xx

5 International HR Policy Furniture Allowance Xx Xx Xx Xx Xx Xx House Hunting Trip Xx Xx Xx Xx Xx Xx Housing and Security deposits Payment of host country rental Home County Property Management Costs Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Xx Security Installation Xx Xx Xx Xx Xx Xx Major Appliance Purchase Xx Xx Xx Xx Xx Xx Utility Costs Xx Xx Xx Xx Xx Xx Automobile buy out Xx Xx Xx Xx Xx Xx Shipment of Pet Xx Xx Xx Xx Xx Xx Shipment of Goods TBD TBD TBD TBD TBD TBD Resettlement Allowance TBD TBD TBD TBD TBD TBD Temporary Accommodation TBD TBD TBD TBD TBD TBD Glossary:- National expat - An employee who is temporarily assigned to work in another country by an organization. Also commonly called an assignee. Third Country National (TCN) An employee who is not a citizen of the home or host countries.

6 International HR Policy D. PAID TIME OFF Personal Return* TBD TBD TBD TBD TBD TBD *Eligibility Must have been recruited from US or recruited from a position having US expatriate status. Must have been recruited from US or recruited from a position having US expatriate status. An employee of the host country organization who has received official confirmation of Tufts TCN status. Line Manager approval. Defined by local decisions in host country. Must have been recruited from US. Vacation Tufts policy. Tufts policy. Host Country policy. As per contract. Host country policy. Host country policy. Public Holidays Tufts policy Host country public holidays Host country public holidays Host country Host country public holidays (unpaid?) Host country. Maternity/ Paternity Leave E. Additional Employment Related -optional Car Xx Xx Xx Xx Xx Xx Language instruction Xx Xx Xx Xx Xx Xx Cultural Training Xx Xx Xx Xx Xx Xx

7 International HR Policy Education Xx Xx Xx Xx Xx Xx Club Fees Xx Xx Xx Xx Xx Xx Family Support Xx Xx Xx Xx Xx Xx Compassion/Emergency Leave Xx Xx Xx Xx Xx Xx Medical Leave Xx Xx Xx Xx Xx Xx Travel Policy Xx Xx Xx Xx Xx Xx F. Home Leave Benefit Home Leave One per calendar quarter to the point of origin One per annum at economy class to point of origin No No No NA Leave of Absence G. Termination & Severance Costs Termination at conclusion of assignment TBD TBD TBD TBD TBD TBD Severance payments TBD TBD TBD TBD TBD TBD

8 International HR Policy II. Compensation Anne DeBenedictis Base Salary Per Tufts grade and base salary program Per Tufts grade and base salary program for senior, intermediate and junior levels. All continue to be paid out of the US where legally allowed For Intra regional Third Country Nationals (TCN s), host country salary in line with host country market rate paid to foreign nationals in the host country (i.e. NOT linked to home country salary). For Inter regional TCN s, a gross host country salary will be based on the home country salary and include allowances for the differentials in the cost of living, housing and tax as outlined below Commercially appropriate rate set by host country norms. Host country salary set in line with host country salary structure and reflecting local market norms Host country salary structure. Base Salary Administration Managed by Tufts (US). (N.B possible tax issues if recharged to host country.) Managed by Tufts (US) where legally allowed Paid via host country payroll system and managed by host country entity with Tufts (US) oversight. NA (Because no base salary). By host country entity (with Tufts (US) oversight?) Paid via host country payroll system and managed by host country entity (with Tufts (US) oversight).

9 International HR Policy III. Taxation Policy - John Sanchez, Ann M., Edna G., & Sue Grant - Treasury Dept. Taxation Policy (Discussion point) Tax Equalization policy applied but should always avoid host country tax by checking tax thresholds based on days of presence. Tax Equalization of employment income with assignee responsible for personal tax Intra regional secondees would be responsible for own tax but receive tax preparation support for first home country tax year in departure year and first three host country tax years. Interregional secondees also responsible for their own tax. Responsible for own tax - no tax advice provided Not applicable - will be familiar with local tax system. May need specific advice on domestic relocation. Responsible for own tax no tax assistance given by Tufts. Tax Return Preparation (Discussion point) Yes if a host country tax liability is triggered. Yes in home and host country for all tax equalized assignees. Host country in all tax years for all senior expats and home country in year of departure and arrival. Advice only for intermediate and junior level assignees who are not tax equalized. No Tax preparation services in first two years for senior expats and tax advice to intermediate and junior assignees? Tax preparation services in first year? Social Security Policy Home country continuation. Home country continuation for up to 5 years. (Consider localizing after 5 years). Host Country system - employee may make voluntary contributions to social security if available at own choice and cost. Should be no obligation on employer for social security. Host country system. Host country system.

10 International HR Policy IV. Additional Pay/Allowances Edna G. Expatriate Allowances - cost of living etc Fixed rate (nonsalary related) per diem allowance, based on US State Department data and separate from base salary Salary-related allowance per selected index data from an external third-party source, often without application of a "negative index" (if an assignee goes to a host location where the cost of living is deemed to be lower than in the home location, their net salary is not reduced to reflect this). Note that a lower index may often be used for junior and intermediate level employees. Same criterion as for a US expat, except that typically total compensation is not factored for their country of origin. NA NA NA Host Country Housing Allowances Housing or housing allowance provided by Tufts for single/ unaccompanied, with no housing deduction and is separate from base salary Host country housing or housing allowance provided up to limit at choice of employee. Level of housing allowance determined by level of expat (senior, intermediate or junior) and the family size. Host country housing or housing allowance provided up to limit at choice of employee. Level of housing allowance determined by level of expat and the family size. Part of fee? NA NA

11 International HR Policy Home Country Housing Contribution (from employee) None (NA as generally home country property retained). A standard 10 % of home base salary deducted from net salary when home country housing has been rented out or sold. No deduction from host salary for intra regional secondees. Interregional secondees would be subject to a contribution of 10% of home base salary as part of the calculation of the housing differential allowance. NA NA NA Other Cash Compensation variable pay Per normal home organization bonus guidelines Continue to be in US bonus guidelines and paid in USD with significant performance input from the host country entity. Discretionary End of completion bonus in exceptional cases. Host country practice and host country variable pay guidelines NA Host country variable pay system Host country variable pay system Hardship Premium Danger Pay

12 International HR Policy Legislated and Customary Pay In line with Tufts (US) practice unless in violation of local law In line with Tufts (US) practice unless in violation of local law For intra regional moves, in line with host country practice for payment of annual salary for example many European countries spread annual salary over 13 months with 2 months salary paid at Christmas. Inter regional moves would be paid additional salary for expatriate allowances? Not applicable as not an employee In line with host country practice which may include 13 month salary, holiday bonus or end of service payment (e.g. Italy and UAE). In line with host country practice which may include 13 month salary, holiday bonus or end of service payment.

13 International HR Policy V. Currency Issues Darleen Karp (OFAC) Currency Exchange Rates/Fluctuations No compensation for Foreign Exchange Rate (FX movements. The notional amount of net US salary which the employee needs to spend in the host country (c.60%) is protected in host country currency, using the FX rate linked to the cost of living index. Any cost of living allowance and other assignment allowances are protected in host country currency. The balance (40%) is protected in home currency. Where payments are not delivered in these proportions, an annual reconciliation will be made to ensure these target amounts are protected. For intra regional moves, the secondee is paid in host country currency only and therefore any adverse exchange rate fluctuation with the currency in their home country is at their own risk. The interregional secondee would also be paid via the host country payroll but the portion of salary not indexed for the cost of living (usually 40% of net salary) would be protected in home currency. No currency protected for FX fluctuation NA NA

14 International HR Policy Review of Currency Rates *Darleen Karp NA If the assignee is not paid in a split salary with protected amounts paid in home and host currency, and exchange rates fluctuate adversely to the assignee by more than 15% over a period of three months, then a review will be carried out quarterly before the annual pay review. None for the intra regional secondee but the exchange rate protection for the interregional secondee would be reviewed on an annual basis at the same time as the host country pay review. If FX rates fluctuate by more than 15% over 3 months, then a review would take place quarterly. NA NA NA

15 International HR Policy VI. Safety, Security & Health Risk Management John Walker *Safety Precautions TBD TBD TBD TBD TBD TBD *Security TBD TBD TBD TBD TBD TBD *Travel Advisories TBD TBD TBD TBD TBD TBD *Evacuation (SOS) TBD TBD TBD TBD TBD TBD *Business Travel Accident Insurance* (SOS) TBD TBD TBD TBD TBD TBD

16 International HR Policy VII. Employee Benefits (Wellness/Retirement) Ann & Robbyn Dewar See attached CIGNA international benefits matrix