International HR Adviser Autumn 2011 Issue 47

AUTUMN 2011

ISSUE 47

Price £10.00

International HR Adviser The Leading Magazine For International HR Professionals Worldwide

Features include: The Global Talent Challenge: Getting New People In New Jobs In New Places Managing Kidnap Risk • Global Taxation & Immigration Updates Internal Fraud And Management Corruption Risks In Russia • Repatriation - The Real Costs Resisting Intertia • Auditing And Benchmarking Your Global Mobility Programme Advisory Panel for this issue:

Claire

Assunta & Fabrice on their wedding day

Pierre Tony Mondello and me on Assunta’s wedding day

Please help us raise money to build a nursery school in loving memory of Assunta and her family As many readers know, my late business partner Assunta Mondello, with whom I launched this magazine (previously known as Expatriate Adviser), sadly and tragically passed away with her husband Fabrice and their two young children Pierre 5, and Claire 3, due to carbon monoxide poisoning in their home in France.

As a tribute to them, and Assunta's brother Tony, who sadly also passed away this year at the age of 34, I am going to raise ÂŁ20,000 to build a nursery school in Uganda that will be named the Comard-Mondello Nursery, in their memory.

Assunta's two children were both at school, and Assunta was a big supporter of children's charities, so after months of trying to decide what to do in their memory, I am delighted to say that I now have a project which I know Assunta would have been proud to be associated with, and a financial target to reach.

The North of Uganda has enjoyed peace for the last few years and the effects can be seen as people leave their temporary mud huts that housed them for up to 20 years, and head back to the land they once farmed. Joseph Kony has not completely left their minds as he continues his destruction in Congo, but, for now, for this community, there is hope.

The children of this area have had more years of war than peace and many only know fear and danger. They have witnessed things that no child should observe. There are no professionals to explain the nightmares, or why they only draw guns. The schools in this area have a massive job ahead.

There are at present a few primary schools in Uganda, but my aim is to build a nursery school attached to one of these schools, which seems fitting as Pierre was 5 and Claire was 3 when they passed away.

I am walking the marathon on October 1st as the start of my campaign and as many readers and clients kindly asked if they could make a donation to a charity as a tribute to Assunta and her work, I have set up a Just Giving Page so that those who would like to contribute to this project, can. People will also be able to see how close to the target we get, and then once the project is underway.

The address if you would like to make a donation is www.justgiving.com/Assunta-Comard-Mondello-and-family Further information on the charity who will be building the nursery in their memory, please visit www.abaana.org I would like to thank you for your support and look forward to letting you know how this worthwhile project, in memory of a beautiful family, is coming along.

Best wishes, Helen xx

CONTENTS

In This Issue Page 2

International HR Strategy: The Global Talent Challenge: Getting New People In New Jobs In New Places Andrew Robb, Director, Deloitte’s Global Employer Services

Page 6

Kidnap: Managing Kidnap Risk David Claridge, Managing Director, Janusian

Page 8

Kidnap: Top Ten Countries With The Highest Risks Amanda Russo, Head of Corporate Communications, Exclusive Analysis

Page 10

Global Taxation: Global Taxation Update Andrew Bailey, BDO LLP

Page 13

Taxation: UK Residence & Domicile Update – The Implications For Assignees Andrew Bailey, BDO LLP

Page 16

Skills: Improving International Presentation Skills James Shirreff, Associate Trainer, Farnham Castle

Page 18

Immigration: Betwixt and Between: How Increasing Scrutiny on US Immigration Is Limiting The Options Of Foreign Employees Charlotte Slocombe, Fragomen LLP

Page 20

Russia: Internal Fraud And Management Corruption Risks In Russia: The Human Relations Aspects Oleg Babinov, Head of Russia, Eastern Europe and Eurasia Practice, The Risk Advisory Group plc

Page 23

Relocation: Repatriation – The Real Costs Dominic Tidey, EuRA

Page 26

Fundamentals of Global Mobility: “It’s A Done Deal - Just Make It Happen ….”

Emma Gibbs, Managing Director, Expat Academy Ltd

Page 29

Survey: Emerging Markets – In The Spotlight Cartus

Page 32

Benchmarking: Resisting Intertia: Auditing And Benchmarking Your Global Mobility Programme Steve Nurney, Leads Mercer’s US Global Mobility Centre of Excellence

Page 35

Country Profile: The Netherlands Ellen Harris, Living Abroad, LLC

Page 38

Health: How To Keep Your Employees Healthy Dr Sneh Khemka, Medical Director, Bupa International

Page 40

Global Immigration: Global Immigration Update Fragomen Global, LLP

Page 46

Diary Dates

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International HR Adviser, PO Box 921, Sutton, SM1 2WB, United Kingdom Publisher • Helen Elliott +44 (0) 20 8661 0186 Email: helen@internationalhradviser.com www.internationalhradviser.com In Loving Memory of Assunta Mondello

Helen Elliott

While every effort has been made to ensure accuracy of information contained in this issue of “International HR Adviser”, the publishers and Directors of Inkspell Ltd cannot accept responsibility for errors or omissions.

Neither the publishers of “International HR Adviser” nor any third parties who provide information for “Expatriate Adviser” magazine, shall have any responsibility for or be liable in respect of the content or the accuracy of the information so provided, or for any errors or omissions therein. “International HR Adviser” does not endorse any products, services or company listings featured in this issue.

Cover Design by Chris Duggan

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IHR STRATEGY

The Global Talent Challenge: Getting New People In New Jobs In New Places As companies worldwide start to look beyond the recession of 2009, many business leaders are adjusting their talent and global mobility strategies to meet their new strategic priorities. By putting the right people in the right jobs in the right locations is the key to business success. Today, this often requires new people with new skills in new jobs in new places.

As part of their overall strategic rebalancing efforts, organisations are clearly anticipating a growing emphasis on talent and mobility strategies aimed at more effectively recruiting, connecting, and managing a global workforce. While the inclination may be to revert to strategies that served organisations well prior to the economic crisis, many are now recognising that the forces shaping future talent and mobility needs, such as globalisation and an aging workforce, continued to accelerate during the downturn and now require new talent and mobility strategies to position their companies for success. Corporate leaders at these companies are reshaping their mobility and talent strategies to compete in the next decade, not the last one. Facing a more global marketplace, companies are now placing a high priority on searching for talent in global and emerging markets so they can have the right people in the right jobs in the right locations (again, which is increasingly new people in new jobs in new places).

The race for talent is global The recession did not reduce the pace of globalisation-instead, many executives recognise that the once-emerging markets of the pre-recession days have become the catalyst for future growth-placing tremendous demands on talent managers to get new people in new jobs at new locations.

In a soon to be published Deloitte Global Mobility Transformation survey, nearly half the organisations surveyed (48%) rated that emerging geographical markets are their most important strategic business issue facing their organisations International HR Adviser Autumn

the highest of any answer in the category Corporate efforts to rebalance overall strategic priorities are also impacting their global mobility programmes, as companies strive to scale their operations globally. In the same survey 79% of organisations anticipate that global mobility will become more important or critically important in their organisation in the next three to five years with approximately the same amount considering it critically important or important to align their organisations global mobility strategy with their organisations strategic talent and business objectives.

More concerning however was that only 2% of the same organisations believe that global mobility is currently completely aligned with their organisations strategic objectives and similarly only 27% believing their global talent programmes are aligned to their business objectives As a result, leading organisations have realised that they must have a sharper focus on global mobility and talent management; they have zeroed in the need to recruit hard to find skill sets; and they are creating career paths and challenging opportunities to retain key employees.

Not all global mobility and talent strategies and their execution are equal however, and one thing is certain: the experiences of employees in the coming years won’t look much like experiences in the past. Every large organisation, it seems, now has the goal of growing rapidly and becoming more global. But are they truly preparing themselves and their mobility programmes for the future, or are they leaving it all to chance? In this article we explore four key areas where organisations should focus their attentions:

1) Leading organisations view mobility as a development tool It sounds obvious: people learn primarily through experience. But seldom do organisations have the systems, tools and culture needed to create the kinds of stretch assignments and other

developmental experiences that facilitate real growth. Networking, formal learning and technology-assisted development are all critical-but they must be designed around those experiences if they are to achieve their full power. Leading organisations are re-evaluating their mobility and talent programmes to consider some of the following questions: • How can we rethink our current mobility polices so that they are capitalising on experiential development opportunities?

• Do our mobility policies encourage and systematise “smart moves” that meet current business and future development needs?

• Do we manage our assignees by giving them ‘good’ feedback during and after assignments and planning their next roles?

• How will we operationalise the new system?

As mentioned in our previous articles, mobility should address both businessdriven needs and talent-driven opportunities to identify top candidates and find the right jobs to develop their competencies. A talent-based mobility framework requires thoughtful mobility policies that support different combinations of job types and people profiles. Such an approach can help organisations make wiser investments in mobility. For example, a long-term expatriate deployment may cost three to four time’s base salary. Are the people the business plans to deploy worth that investment? Organisations should identify talent they are willing to invest in, develop policies to govern talent-driven deployments, and match people to opportunities that will help them reach their potential.

2) Most organisations lack mobility, talent and business strategy linkages There are few organisations that link their business strategy with their mobility and talent strategy; a clear point-of view regarding mobility strategy; full alignment

IHR STRATEGY MOBILITY WITHIN THE TALENT MANAGEMENT LIFECYCLE A Working Model for Managing Mobility Through the Talent Platform

of talent processes; and a mobility programme that invests in the right things and people (and no more).

Companies may have the elements necessary to create the linkage, but no guiding framework or mechanism to bring the parts together to work for the whole. There is a leadership pipeline, for example, but not one that defines the kinds of global leaders and associated career experiences that are needed for the future. There are essential processes and programmes in place, such as global mobility and performance management, but they’re not aligned with the business strategy, or even with each other. Recruitment is another example.

A company may be unable to offer the same financial reward to attract talent as a competitor. However, by linking mobility with the recruitment process, global mobility can help convey a value proposition that includes opportunities to work in growing markets and gain valuable experience that will enhance an employee's resume.

Building these linkages requires treating the entire mobility and talent process from strategy to solutions, as one system. No single element can flourish on its own. It’s the interaction between them that gives the system its vitality

and robustness. This takes work, however once the parts of the system start to work together, the mobility and talent development process becomes focused, self-sustaining and often more efficient. As a result, the employees that the organisation needs now and in the future will begin to emerge.

3) Organisations should redefine mobility as a talent cycle The mobility function historically has seen its role as a transaction-based life cycle that starts with meeting pre-departure logistical requirements. The company then cares for expatriates on assignment, and ultimately brings them home.

By viewing mobility as a talent-oriented life cycle rather than a transactional one, the mobility function can add value to the employee, the line of business, and the enterprise. The phases for managing mobility through the talent platorm are shown above.

An example of how a redefined approach works can be seen in the first phase of the life cycle. Typically a line of business determines whom it wants to move abroad, and the mobility function then takes over to make it happen.

Instead, the mobility function can

take the lead by learning more about the business imperative or opportunity behind the deployment. It can explore with the business what type of deployment might best fulfill its need. It then can be involved in making sure candidates are assessed for cultural adaptability and other aspects of working in a foreign environment.

4) Change the employee value proposition Some employees equate mobility with additional hardship. They are away from family and friends. They are at a disadvantage relative to their home-side counterparts who can see, and be seen by, higherlevel executives who might support their career advancement.

Enlightened employers understand that far from owning their human resources, an organisation operates somewhat like a human capital bank. Employees invest their human capital in the organisation expecting certain kinds of returns, including personal and professional development in the form of a rewarding and valuable career. In this light, an employer's investments in employee development, including experiences such as international assignments, can be seen as not only benefiting the employer but also Autumn  International HR Adviser

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IHR STRATEGY ENHANCED DEVELOPMENT SUPPORT FOR ASSIGNEES

enhancing the value of employees' careers. Leading organisations convey this sense of co-investment to key personnel. Instead of seeing mobility as a hard ship for which they need to be compensated; employees in these organisations develop the sense that it is an opportunity, and they embrace it.

As a result, some organisations are redirecting their efforts to provide enhanced development support mechanisms for assignees depending on the type of deployment and associated policy as opposed to enhanced cash benefits as part of this co-investment equation (see example detailed above).

Conclusion To effectively address today's mobility and talent challenges, organisations must realign global mobility so that it balances the needs of the three talent constituencies: employees, lines of business, and the organisation as a whole. As discussed earlier, one key to better serving employees is to identify those with high potential who can benefit from development and mobility, and then fit jobs to them. To support the lines of business, global mobility must understand business growth objectives and opportunities, assist in the

International HR Adviser Autumn

development of staffing strategies, and implement policies and programmes to help the business extract maximum value from mobility investments. To do this, global mobility must understand what the organisation's strategic geographic markets will be in the years ahead, be ready and able to help deploy people into those markets, and provide consultation on associated HR issues. In short, supporting organisational business needs means supporting the overall talent and mobility agenda of the organisation. This requires understanding the broad business and talent objectives and assisting in the integration of international experience in global competency development so they can have the right people in the right jobs in the right locations.

Rob Hodkinson, is a Partner in Deloitte’s Global Employer Services practice in London and leads Deloitte’s Global Mobility Transformation (GMT) services across EMEA. He can be contacted at rhodkinson@deloitte.co.uk

Andrew Robb, is a Director in Deloitte’s Global Employer Services practice in London and leads Deloitte’s Global Mobility Transformation (GMT) services in the United Kingdom where he assists companies in transforming their mobility functions and aligning their mobility programmes to their wider organisation business and talent objectives. He can be contacted at anrobb@deloitte.co.uk.

D e l o i t t e’s Gl o b a l Mo b i l i t y Transformation Survey results will be published at Deloitte’s Annual Global Mobility Transformation Conference on Thursday 24th November 2011. For more information visit www.deloitte. co.uk/GMT2011

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More than just a school Families just know when a relocation works. Whether you are a mom or dad, toddler or teenager, HR or relocation professional, from Texas or Tokyo, when all the pieces come together, it can deliver one of life’s most rewarding experiences. ACS understands the complex needs of globally mobile families. We have partnered the relocation industry since 1967 to meet the many challenges that face international families moving to London. Our campus-specific Admissions, Housing and Transport experts work closely with parent-assisted Welcome Teams, International Groups, Parent/Teacher Organisations and Buddy programmes to create a smooth, seamless and happy transition. That is why each year literally hundreds of families from more than 50 countries make ACS ‘the’ London solution to their educational and lifestyle needs.

To find out how we can help meet your relocation requirements, please visit www.acs-schools.com Alternatively, call either ACS Cobham +44 (0)1932 869744, ACS Egham +44 (0)1784 430611 or ACS Hillingdon +44 (0)1895 818402 ACS Schools are non-sectarian and co-educational (day and boarding) for students 2 to18 years of age.

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Managing Kidnap Risk

Managing Kidnap Risk In his account of being kidnapped in Gaza City in 2007, the BBC journalist and former hostage Alan Johnston recalled seeing signs that something was afoot, but not recognising them until it was too late.

"When I came down out onto the street I noticed another car parked nearby, very close in front of me with someone in the front seat looking up at me. I moved away and the car turned down one street and then into another, and at that point I felt I saw a car surging past me. At first I thought it was just another bit of Gaza driving. But as the car pulled up just ahead of me, the door flung open on the passenger front side and out stepped a young guy with a pistol.

Very quickly he was alongside me, pointing the gun through the door. I was vaguely aware of another gunman coming out of the other side of the kidnapper's car and I knew immediately what was happening."

Johnston’s experience is typical. A kidnapping operation cannot be spontaneous.

Its target is pre-selected and normally subject to prolonged surveillance. This allows the kidnappers to establish daily routines and routes and select the time and place where the seizure of the hostage will take place. They will choose a spot with maximum potential for a clean getaway, which normally means being able to grab the target quickly, get them into a vehicle and move away before anyone around realises what has happened.

Once the hostage has been seized they need to be held in a place where they are prevented from escape, safe from discovery and kept alive. Almost all kidnappers prefer live hostages, which after all are the commodity they are seeking to barter with, whether for cash or political advantage. Securing and protecting the hostage is likely to be responsibility of a specific team, which in larger kidnap organisations is likely to separate from surveillance or snatch teams.

The kidnap organisation also requires an element dedicated to negotiation, and possibly publicity. This again is likely to be distinct from the rest of the group in order to keep the hostage-element secure. In many countries that are seriously afflicted by kidnapping, such as Mexico, Somalia, Iraq and Pakistan, it is not uncommon for hostages to be sold between groups. One organisation may specialise in snatches on behalf of another which holds and International HR Adviser Autumn

negotiates over the hostage.

The development of all of these structures explains in part why kidnapping tends to cluster in particular countries.

Those with weak and corrupt law enforcement or ungoverned areas are especially likely to be affected. Once the organisations that support kidnapping begin to take root and generate funds they are particularly difficult to counteract.

Implications for risk exposure For businesses with travellers to elevated kidnap risk locations, or with operations based within them, it is important to develop specific strategies to mitigate kidnap risk. Fortunately the relative complexity of kidnapping organisations, and the phenomenon’s tendency to cluster, affords opportunity for corporate risk managers to put in place a wide variety of measures that together can offer a reasonable level of protection for their companies and staff.

Kidnapping events carry with them a number of risk exposures for companies.

Obviously a hostage’s well-being is under threat, particularly at the start and end of a kidnapping episode. The time of seizure is particularly dangerous, as are rescue attempts mounted by the authorities, and to a lesser extent negotiated handovers.

While incarcerated, hostages can expect harsh treatment, poor diet, insanitary conditions and lack of medical treatment.

Naturally kidnapping also causes stress and trauma to its victims that can persist well beyond the resolution of the event.

At a corporate level, the risk to employees raises questions of duty-of-care to adequately advise and prepare staff and take appropriate measures to protect them. Failure to do so exposes the company to risk of litigation from victims and their families, or prosecution for failing to protect staff in the workplace.

There are also significant brand and reputational risks associated with kidnapping, particularly where there has been inadequate preparation on the part of the company. Not all kidnap incidents receive media attention (in fact the vast majority go unreported). But naturally political kidnappings tend to capture media attention more readily than economically motivated ones, and those involving Western hostages in high risk locations are most likely to receive substantial coverage.

The business of paying ransoms is a major reputational challenge for most companies as it is being perceived to be insufficiently active in securing a release. A case in point is US defence contractor Northrop Grumman, who had three employees taken hostage by the FARC armed group in Colombia in 2003. Given the importance of the US government to NG’s business there was no way it could agree to meet ransom demands, which would have flouted the government’s strict prohibition on making concessions to terrorists. Yet the company took significant criticism in the media for its perceived inaction. In the end the men, along with a number of other Western hostages, were released by a Colombian rescue operation in 2008.

In fact in the US, as in most Western countries, there is no legal obligation upon private companies to avoid ransom payments. And it is widely understood that governments of countries such as France, Germany, Italy and Japan do intervene to facilitate them. However in several countries that are affected by terrorism and kidnapping, for example in Colombia and Algeria, it is illegal to pay ransoms.

A further consideration for companies is the financial risk arising from ransom demands, and also of managing a kidnap case. The cost of professional advisers, emergency payments to family members, loss of executive time and other business interruptions, as well as victim compensation, contribute to a reasonable level of financial risk potentially associated with a kidnap event.

Managing kidnap risk Given these exposures it is important to adopt a risk management strategy that is active and multilateral. Many of its components are likely to be preventative, with a focus upon preparation of those exposed to kidnap risk, as well as developing response procedures to assist with smooth incident management in the event of a kidnapping.

The initial consideration for most risk managers should be to segment corporate exposure to kidnap risk based upon severity.

There are many risk databases that specifically identify and quantify kidnap risk for each country in the world. These tools can be integrated with a travel approval process if necessary, to ensure that travellers to higher risk locations are subject to additional risk controls before travel is permitted.

Managing Kidnap Risk Similarly overseas facilities can be segmented according to risk and appropriate controls put in place.

Many corporate risk managers will engage specialist intelligence providers to further analyse local kidnap threats in higher risk countries, to allow them to better understand regional distribution of kidnap events, typical targets, size of ransom, frequency and kidnap event outcomes. This again allows risk controls to be decided and targeted most effectively.

In many cases additional security is likely to be applied to deter and prevent kidnap attempts. This will vary according to local conditions, but may include trained security drivers, armed or unarmed close protection, hardening of security at homes and offices, tracking devices and panic alarms.

A very common and effective additional measure is to conduct staff training to raise security awareness and provide information that will make a hostage incident more survivable. Security training that includes awareness of the part that surveillance plays in the build-up to a kidnap is one of the most effective ways to disrupt a plot. The potential victim must learn to spot surveillance and know how and where to report it.

Training should also emphasise ‘listening’ to

instincts so that when, like Alan Johnston, something doesn’t quite seem right immediate evasive action follows.

Hostage survival training should explain the make-up of the kidnap gang, how the business of kidnapping works and how kidnap events are resolved, the psychological pressures that a hostage will be under and how to cope. With less uncertainty kidnap victims are better able to take a positive outlook on their predicament and emerge physically and psychologically stronger than they otherwise would.

Companies with exposure should also consider kidnap amongst the scenarios they prepare for in their business resilience planning. This means having a clearly developed response plan, including where to access assistance from professional specialist advisers, a worked up media plan and a considered position on ransoms and other concessions on behalf of staff.

Many companies choose to purchase kidnap, ransom and extortion (KRE) insurance policies in order to transfer some of the financial risks of a kidnap event and ensure priority access to professional advice should it be required. A common misunderstanding about KRE is that it provides ‘negotiators’ to intervene following a

kidnap. In fact all decisions about management of a case will lie with the company, which can choose to operate with the advice of a specialist provided under the KRE policy.

Companies purchasing KRE cover should be aware of special rules or even outright prohibition of such cover in some jurisdictions, such as Germany, Japan and Colombia. It should also go without saying that possession of corporate KRE cover should remain highly confidential. Possession of a policy will only encourage kidnap attempts. Indeed it is not unheard of for employees to ‘self-kidnap’ in an attempt to collect a ransom. i Kidnapped: The Alan Johnston Story, BBC Panorama, first aired 25/10/07.

Dr David Claridge Managing Director, Janusian, Russell Square House, 10-12 Russell Square, London WC1B 5EH tel: +44 (0) 20 7578 0009 fax: +44 (0) 20 7578 7855 email: claridge@janusian.com www.janusian.com

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Kidnap - top ten countries

Kidnap - Top Ten Countries With The Highest Risks Specialist intelligence company Exclusive Analysis has selected some of the countries with the highest risk of kidnap to expatriates. Key findings include analysis for Africa, Latin America and Asia regions.

Africa The risk of kidnap for foreigners in Kenya is likely to grow in 2011. On 20 February 2010, in Gatundu, north of Nairobi, the police freed a Canadian expatriate kidnapped near Nairobi's International School on 17 February 2010. Risks at Kenya's porous borders have steadily increased, with at least 10 Kenyans and foreigners kidnapped in the last year.

Islamist groups like al-Shabab are likely to target Westerners, who would then be taken back across the border; two Italian nuns kidnapped by Islamists in November 2008 were held until February 2009. On 18 July 2009, three foreign staff (a Zimbabwean, a Pakistani and a European) of French NGO Action Against Hunger (ACF) were kidnapped from their office in Mandera, North Eastern Province.

In Nigeria, kidnapping risks for

expatriates are acute in the Niger Delta and over the next year, the trend of kidnap-forransom in states outside the Delta is likely to continue, with particularly acute risks in larger cities such as Lagos and Abuja. There is a very significant risk of kidnapping for expatriates in Bayelsa, Delta and Rivers States in the oilproducing region. Most kidnappings of expatriate oil workers are likely to be carried out by opportunistic criminal groups, which differ, at least nominally, from politically motivated militant groups like the Movement for the Emancipation of the Niger Delta (MEND).

The primary risk of kidnap in Mali and Niger stems from Al-Qaeda in the Islamic Maghreb (AQIM), which is active in the northern desert areas bordering Mali and Algeria, and in the uraniumrich Agadez region. The multi-million pound ransoms now being paid for AQIM hostages seized in the border area means that there is also incentive for local Tuareg to conduct opportunistic kidnappings of Western nationals and sell them on to AQIM. Hostages captured in Niger are usually taken into Mali, where AQIM has

established bases and contacts with local kidnap negotiators. On 21 April 2010, a French national and his Algerian driver were kidnapped near Tiguidan Tessoun in northern Niger. The incident followed the AQIM kidnap of two Canadian diplomats visiting the Canadian-owned Samira Hill gold mine on 15 December 2008, and a failed attempt on 14 November 2009 to kidnap US Embassy staff in Tahoua.

Latin America In Mexico, migrants and Mexicans are at the highest risk of kidnapping. However, there is a risk to expatriates travelling or working in the country. Kidnappings have been increasing sharply. The kidnapping for- ransom hotspots are Mexico state, mainly in areas next to Mexico City; Baja California, mainly Tijuana and Mexicali; Michoacán, mainly Morelia; and Chihuahua, mainly Ciudad Juárez.

'Express' kidnappings, in which an individual is taken for a few hours and forced to withdraw money from a cash machine, have spread to main cities in several states (Guadalajara, Jalisco, Morelos, Sinaloa, Chiapas, Guerrero, Michoacán and Oaxaca). Most

Exclusive Analysis analysts use a set of risk indicators, intelligence related to those indicators, and risk metrics to formulate Risk Scores for countries and distinct threat types within those countries. Risk scores are measures on a scale of 0 to 10. Red represents a ‘severe risk’ and orange represents a ‘high risk’.

International HR Adviser Autumn

Kidnap - top ten countries of the known kidnappings of US nationals occur close to the Mexico-US border; cases have been reported of kidnappings conducted in the US, with the victim transported to Mexico to be held until ransom is paid.

There were under 60 known cases of kidnappings of US nationals (who account for more than 80% of all foreign visitors to Mexico) from 2006 to 2008.

Asia In the Philippines, foreigners are at greatest risk of kidnap by militants in Mindanao, particularly in Zamboanga, Sulu and Basilan. Risks of kidnap in Manila are also increasing. Westerners are at a heightened risk of kidnapping because they are viewed as bringing in greater ransom payments and international media attention.

In January 2009, three ICRC workers (one Italian, one Swiss and one Filipino) were kidnapped by Abu Sayyaf in Sulu and held for three months before a significant military operation and negotiations secured their release. Abu Sayyaf demanded a $5 million ransom payment that was

reportedly not paid. A Swiss-Filipino businessman was kidnapped from a beach resort in Zamboanga in April 2010 (a German tourist was also targeted but managed to escape) and rescued by the Army in June 2010. Local business owners, company staff and NGO workers have also been kidnapped by Abu Sayyaf and face significantly higher risks of being killed if ransom is not paid.

Local and foreign staff of NGOs and government aid agencies, particularly Westerners, face significant risks of kidnap in Pakistan’s Khyber Pakhtunkhwa (KP).

Militants accuse NGOs of un-Islamic behaviour and view them as competitors for the hearts and minds of local populations, seeking to divert local populations from traditional and Islamic ways. In July 2010, the UNHCR announced that it was suspending its operations in KP and Baluchistan due to unacceptable security risks to its personnel. In February 2010, militants kidnapped three local workers of the American NGO Mercy Corps and held them hostage for five months. Risks to expatriates are also high in Baluchistan

Province. Baluch insurgent groups are likely to attempt further kidnappings of foreign visitors and resident local and international staff of NGOs and foreign companies.

Exclusive Analysis is a specialist intelligence company that forecasts political and violent risks worldwide.

Headquartered in London, the company has offices in Beirut and Singapore.

The kidnap risks provided above were produced by regional analysts from the region, for the region.

Exclusive Analysis has over 1,200 sources and regional analysts around the world.

For more information, please contact Head of Corporate Communications Amanda Russo at: Amanda.Russo@exclusiveanalysis. com or + 44 (0) 207 648 5416 68 Lombard St. London EC3V 9LJ United Kingdom www.exclusive-analysis.com

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taxation

Global Taxation Update Belgium Protocol treaty Belgium & United Kingdom approved In June 2009, the UK and Belgium signed a new protocol amending the existing Double Tax Treaty. This protocol has now been ratified by both countries and is likely to enter into force from 1 January 2012. Along with a series of other changes, the new protocol amends the provisions dealing with municipal surcharges and pensions.

Double tax relief In addition to federal income tax, Belgian residents are also subject a “municipal tax”, which municipalities may impose on the amount of federal income tax due.

This municipal tax varies depending on the commune of residence and generally is between 0 and 10%.

The new protocol foresees the right for Belgium to levy municipal taxes on UK source income earned by a Belgian resident when double tax relief (professional income and pensions) is available under the treaty. This means that for UK income earned as from the moment the amended treaty enters info force, municipal taxes will be due on the tax which would be payable in Belgium if the earned income had been derived from Belgian sources. A similar provision has already been inserted in the treaties Belgium has concluded with the Netherlands, Germany and France.

As a result of the amendment, in future, Belgian residents who exercise a professional activity in the UK and whose salary or profits are taxable in the UK will suffer a higher Belgian income tax liability.

China Social Security Historically, foreign nationals assigned to China have not been subject to Chinese social security but the position has now changed with social security arising effective 1 July 2011. Implementation details have just been published effective from October 2011.

Social security will now be due from those working in China who are either employed by a Chinese entity or employed by a foreign entity but assigned to work for a Chinese entity. Social security registration is required within 30 days of the issue of the work permit. Chinese entities will act as withholding agents. Rates will vary from International HR Adviser Autumn

city to city with employer contributions being around 30% and employee contributions around 10%. These rates will apply to capped monthly wages.

Expatriate allowance Since 1 September 2011, China has increased the personal tax threshold to 3,500 yuan. The additional sum for expatriates will be reduced to 1,300 yuan.

The net effect is expatriates will have the same 4,800 yuan threshold. The aim of the changes is to reduce the tax benefits of international assignees so that they are treated more comparably with Chinese nationals.

France ‘Super-rich surcharge’ Some very wealthy French individuals were widely reported as wanting to pay more tax (some US wealthy individuals have also made similar claims). Consequently a 3% income tax increase (top rate now 44%) has been introduced and is to apply to those earning more than €500,000 per annum. ITALY has also introduced a similar surcharge with an additional wealth tax of 3 % applying to those earning more than €500,000 per annum. PORTUGAL has also increased higher rate taxes with an extra 2.5% levy.

Significant voluntary donations from any wealthy individuals would surely be warmly received by cash strapped governments.

Hong Kong HK$6,000 Rebate It is reported that Hong Kong is to give HK$6,000 (circa £500) to all Hong Kong Citizens and permanent residents even if living abroad. Too much government cash is not a problem experienced in many other jurisdictions!

Netherlands Amendments to 30%-ruling regime announced In a letter of 8 September 2011, the State Secretary for Finance announced that changes will be made to the 30%-ruling regime. Details of the changes, which are expected to become effective from 2012, are summarised below.

Introduction Employees of foreign companies who are temporarily assigned to the Netherlands can apply for "the 30% ruling regime", by

which 30% of their employment income can be paid tax free to compensate them for specific expatriate costs (referred to as "extraterritorial costs").

Current conditions The current conditions for application of the ruling are: • The taxpayer is hired abroad by an employer resident in the Netherlands: the employer must be an employer which is obliged to withhold wage tax • The employee must have specific expertise which is sparsely available in the Dutch domestic labour market. Specific expertise is determined by a combination of the following three conditions: (i) the employee's level of education (ii) the net level of salary with regard to the employment in the Netherlands corresponding to that in the expatriate's country of origin; and (iii) the employee's relevant working experience in respect of the specific employment. If experience is required for an employment, it has, however, been clarified that this condition is deemed to have been satisfied if the expatriate has work experience of at least 2.5 years in a comparable employment.

If the condition (iii) is not met, it may still be possible to qualify for the 30% ruling if the conditions (i) and (ii) are met.

Duration The 30% ruling is granted for a period of 120 months, starting from the date of employment in the Netherlands. A reduction to this period applies if an employment or stay in the Netherlands has terminated within a period of 15 years before the start of his new employment and the employee was appointed or residing in the Netherlands 10 years before he was hired.

Proposed changes • The condition that the employee has specific expertise, which is sparsely available in the domestic labour market, will be deemed to be met if the employee earns a minimum salary; • The period which is taken into account for a reduction of the duration of a 30%-ruling will be increased from 10 to 25 years; • Employees living within 150 km from the Dutch border are no longer entitled to the ruling; and It will become possible to obtain the ruling for young employees which took a

taxation Ph.D. in the Netherlands and thereafter obtained a job there.

Further details of the changes will be included in the Tax Plan 2012.

Switzerland Another bank & tax authority settlements Following on from previous settlements and agreements between Swiss banks and tax authorities, Switzerland and the UNITED KINGDOM have now reached agreement as to how to tax money held

by UK citizens in Swiss bank accounts.

From May 2013, the Swiss will tax bank accounts of UK citizens that have been open before 2010 and will transfer funds deducted to the UK without revealing the identity of the individuals involved. Rates will vary from 19% to 34% depending on the time the account has existed. From 2013 an annual levy will also be applied.

This will vary between 27% and 48% depending on whether the funds relates to capital gains, dividends or interest. There are vows to track funds that are moved from Switzerland prior to 2013. Special rules will apply to non domiciled individuals. The LICHTENSTEIN Disclosure Facility may represent a better choice for those in the UK with undeclared funds.

GERMANY has also reached a similar agreement with Switzerland. German citizens with undeclared holdings in Swiss bank accounts will make a one-off payment of between 19% and 34%. Future investment income and capital gains will be taxed at 26.4% and will be remitted by Swiss banks to the German authorities.

FRANCE is currently resisting making a similar agreement and has always refused tax-related ‘amnesties’ but watch this space for developments.

Interaction with the EU Savings Directive will come under increased scrutiny as a result of these agreements. Individual assignees should remember to declare foreign bank accounts which are kept open following a return from an assignment.

United Kingdom Reminder regarding filing deadlines The deadline for filing a UK tax return is generally 31 January following the year of assessment. For example, returns for the year ended 5 April 2010 were due to be filed by 31 January 2011. In recent years the £100 penalty for late filing of UK tax returns has been waived where either no tax was due or where the tax payment was made by 31 January. This led to many

UK tax returns being filed late without incurring a penalty.

The position has now changed and late tax returns for the year ended 5 April 2011 will incur a £100 penalty irrespective of the tax position. Additionally, a continued delay of 3 months beyond 31 January 2012 will give rise to an extra £10 per day penalty up to a maximum of £900. Where the delay continues beyond 6 months or a year, yet further penalties accumulate equal to the higher of £300 or 5% of the tax due.

Failing to file on time will in future result in rapidly accumulating penalties.

Assignees and employers who usually provide details to their advisors until late in January should take action now to prevent penalties arising.

Tracking of UK days Presence in the UK can affect tax liabilities for those on short-term assignees to the UK or those seeking to claim they are not UK tax resident. Advisors are often asked how is such days tracked? We are hearing reports that all journeys made by any individuals in and out of the UK are tracked and kept for up to 10 years by the UK Government. Given the proposed new Consultative Document day counts are ever more important. The swiping of electronic passports is now the norm. It would be interesting to know whether such reports are true and whether such details are accessible by HMRC. Notwithstanding this, it is essential that individuals keep detailed records, especially in the event that they are subject to audit.

United States New IRS Reporting Requirements for Specified Foreign Financial Assets -Draft IRS Form 8938 Beginning with the 2011 tax year (tax years beginning after 18 March 2010) US citizens and residents who have an interest in a "specified foreign financial asset" during the tax year must attach a disclosure statement to their income tax return for any year in which the aggregate value of all such assets is greater than US$50,000.

The IRS has recently posted a draft of new Form 8938 Statement of Specified Foreign Financial Assets on their website http://www.irs.gov/pub/irs-dft/ f8938--dft.pdf and this form must now be included with an individual’s annual federal tax return. At the time of this publication the IRS has not yet released the final instructions for the new form.

UK’s £30,000 remittance basis charge

is available for credit in the US. The IRS has finally announced via a Revenue Ruling that the UK’s remittance basis charge is creditable against US tax.

The charge has applied since 6 April 2008 where individuals elect to be taxed on a remittance basis once they have been in the UK in at least 7 out of the last 9 years.

Where relevant the charge applies from the 8th year.

Previous uncertainty had led to some US individuals opting to be taxed on an arising basis, especially as continuing US tax liabilities arose and may have been available for tax credit in the UK. The announcement is welcome.

Prepared by BDO LLP. For further information please contact Andrew Bailey on 020 7893 2946 or at andrew.bailey@bdo.co.uk

Free Seminars

The Corporate Relocation Conference & Exhibition Monday 6th February 2012 Hotel Russell, Russell Square, Bloomsbury, London 10.30am – Third Culture And Cross-Cultural Kids – Who They Are And How We Can Help!

11.30am – Relocating Successfully 12.30pm – Tax Planning Essentials For Expatriates In The UK 1.30pm – “All You Wanted To Know About Corporate Immigration But Were Afraid To Ask?” 2.30pm – Strategic Partner: The Next Move For Global Mobility 3.30pm — Setting Competitive Expatriate Management Policies: Current Trends And Best Practices

To register for all or any of these seminars, please email helen@internationalhradviser.com

Autumn International HR Adviser

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You are cordially invited to

The 2012 Corporate Relocation Conference & Exhibition on

Monday 6th February 2012 at

Hotel Russell, 1-8 Russell Square, Bloomsbury, London, WC1B 5BE This event is FREE TO ATTEND

Come along and meet our 42 exhibitors who have products and services that support Expatriates, International HR professionals and those advising the expatriate community.

There are also free seminars running throughout the day and the seminar programme will be announced very soon. You will need to pre-register for the seminars as places are limited so please email helen@internationalhradviser.com If you would like complimentary invitations for your your colleagues or your expatriate employees, please email helen@internationalhradviser.com with the quantity and where you would like them sent to.

For further information on this event please call Helen Elliott on 020 8661 0186.

We look forward to seeing you there.

TAXATION

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UK Residence & Domicile Update The Implications For Assignees As mentioned in the previous edition of 'International HR Adviser', those concerned with international mobility involving the UK have been eagerly awaiting consultative documents on the subject of UK tax residence & domicile. These documents have now been issued by HM Treasury (HMT) and HM Revenue & Customs (HMRC) and this article briefly covers the key points affecting assignees.

Consultative document regarding a statutory definition of tax residence What’s the issue?

An individual’s residence and ordinary residence status is very important for an employee as, together with domicile status, they determine how that individual’s employment income is taxed in the UK. Residence for the purposes of UK taxation has never been defined in UK law. Consequently, determining an individual's UK residence status with a high degree of certainty has sometimes been difficult. This has become increasingly so in recent years as HMRC has often sought to treat individuals as continuing their tax residence in the UK when those individuals might otherwise have considered that they met all the conditions to be treated as not resident in the UK. There has been a number of high profile court cases held in the UK where prior agreement as to an individual’s residence status could not be reached. These cases have centred on the questions of whether or not an individual's lifestyle has sufficiently changed, their intentions, what constitutes ‘full time working abroad’ and whether sufficient ties have been severed from the UK in order for them to be treated as not resident for UK income tax purposes. These factors are in addition to the more familiar day counting rules, which are more easily understood and applied.

UK employees going to work predominantly outside the UK have in some circumstances been severely affected by the changing view of the courts and HMRC. For example, where the conditions within the destination country may not always

be suitable for the assignee’s family, or in situations where companies have sought to reduce the cost of assignments by having the individual on shorter, solo or commuter assignments with more frequent visits to see their UK based family.

Additionally, as many will be aware expatriate concessions apply to short-term assignees coming to the UK. Relief from tax in relation to income arising from non-UK workdays may be available where it is clear there is a short-term intention to reside in the UK. This is extremely hard to prove for either the taxpayer or HMRC. Intentions may be vague, they change and individuals may well have a different opinion on the anticipated length of stay in the UK than their employer. Assignments are also often affected by economic conditions with assignments or the employment itself being terminated by the employer.

Changing tax rules, judicial decisions and lack of clarity has created major uncertainty for both assignees and their employers.

UK Statutory Residence Test – what has now happened?

This uncertainty has helped no-one, including HMRC and the Government, who want to demonstrate that the UK is open for business. The tax rules needed addressing.

The feasibility and relative merits of a Statutory Residence Test (SRT) in the UK have been discussed for many years but on 17 June 2011 the UK Government released a consultation document outlining their proposals for a SRT and seeking responses by 9 September 2011.

The Government’s current proposals are for the new SRT rules to come into effect at the start of the 2012/13 UK tax year on 6 April 2012. It is also proposed that the new rules will not apply retrospectively and there will be no transitional rules in relation to earlier years or the current year. It is likely that responses to the consultation document will include requests for transitional rules to apply as this will provide yet greater clarity for all.

The aim of the SRT is to provide certainty as to an individual’s UK residence

status, whether that individual is a UK national who is leaving the UK, or a foreign national who is arriving in the UK. While the SRT is expected to vary slightly depending on whether an individual is arriving in the UK or leaving the UK, in either case under the current proposals, they will fall into one of three categories: Part A - conclusively non-resident; or Part B - conclusively resident; or Part C - residence dependent on a mixture of connecting factors and day counting.

Part A It is proposed that an individual will be conclusively non-resident if they meet any of the following conditions: • They were not resident in the UK in all of the previous three tax years and are present in the UK for fewer than 45 days in the current year; or • They were resident in the UK in one or more of the previous three tax years and they are present in the UK for fewer than 10 days in the current year; or • They leave the UK to carry-out full time work abroad (minimum 35 hours per week), provided they are present in the UK for fewer than 90 days in the tax year and no more than 20 days are spent working in the UK in the tax year.

Part B It is proposed that an individual will be conclusively resident if they meet any of the following conditions: • They are present in the UK for 183 days or more in a tax year (the UK tax year is from 6 April to 5 April); or • They have only one home and that is in the UK (or they have two or more homes all of which are in the UK); or • They carry out full time work in the UK. Part C An individual whose residence position is not determined by the tests in either Part A or Part B will have to look to Part C to determine their residence position. The Government has identified certain factors that connect individuals to the UK which they propose are to be taken into account.

These factors together with the amount of Autumn International HR Adviser

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taxATION • Proposals to replace the Days spent in UK current non statutory Arrivers Leavers practice for dealing with Fewer than 10 days Non-resident (Part A) Non-resident (Part A) remittances 10 to 44 Non-resident (Part A) 4 from a mixed fund with 45 to 89 4 3 legislation.

At p re s e n t 90 to 119 3 2 bank accounts 120 to 182 2 1 denominated in a currency other 183 or more Resident (Part B) Resident (Part B) than sterling often require time spent in the UK will decide whether There were two main options proposed: convoluted calculations to determine the or not they are resident. The connecting 1. Abolish ordinary residence for all tax foreign currency gain or loss that may factors are: purposes except overseas workday arise on a withdrawal of funds. Fluctua• The presence of family in the UK relief; and tions in exchange rates therefore need to • The availability of accommodation in the 2. Retain ordinary residence for all curbe monitored and calculated, includUK which is used during the tax year rent tax purposes and create a statuing non-UK/non-sterling accounts into • Substantive (but not full time) work in tory definition. which an assignee’s salary only is paid! the UK (defined as 40 or more working With regard to assignees to the UK, the These rules are widely regarded as nondays in the tax year) key point is that under both proposals, sensical by all and their proposed demise • Presence in the UK for more than 90 days continuing relief should still be available is warmly welcomed. in either of the previous two tax years for the tax year of arrival and potentially Proposals to revise the current state• More time spent in the UK than in any up to a further two UK tax years. With the ment of practice and enshrine it within other single country.

UK marginal tax rate of 50% already being legislation are sensible, as are suggested The factors will be applied differently much higher than the rates of tax in other relaxations to remittance rules in situadepending on whether an individual is an countries, confirmation of the retention tions where automatic scheme transac‘arriver’ (not resident in all the previous of this valuable relief to attract short term tions are routed through assignees bank three years) or a ‘leaver’ (resident in one or assignees to the UK is most welcome. accounts by their employer. Unfortumore of the previous three tax years). nately the Government’s fixation with Whilst many wish a pure day count was Consultative document regarding the remittances remains. A major opporto apply in determining residence status taxation of non-domiciled individuals tunity to simplify the rules for overseas going forward, the proposals have been Various proposals are contained within the workday relief and slash the extensive generally positively received and do repreconsultation document regarding the taxaguidance on remittances looks like being sent a clear step in the right direction. tion of non-domiciled individuals. Whilst missed. many of these are likely to have significant Ordinary residence and short term impact for longer-term residents or wealthy Summary assignees - proposals for clarity individuals residing in the UK, I wanted In general, both consultative docuAs mentioned at the outset, the rules relatto highlight a few of the key features in so ments represent a positive step forward. ing to ordinary residence, which provide far as they affect employees on short-term Naturally clarification on certain points relief for non-UK workdays, have also assignments to the UK. or relaxation in various areas would be come under much scrutiny of late and the Currently many such assignees retain appreciated. For example: consultative document includes proposals bank accounts outside the UK into which • In what way do the proposals support to clarify these. their employment earnings may be paid. the concept on independent taxation The good news is that the Government Where an individual is on short-term for spouses? has stated that they wish to retain the assignment to the UK and has non-UK • The separate residence factors - presconcept of overseas workday relief for at workdays they may be eligible for UK tax ence of family and availability of least short term assignees to the UK. It relief on such workdays but in order to do accommodation – are likely to go hand has proposed new rules to include excluso they must not remit such earnings to in hand. This will severely limit return sions from being not ordinarily resident the UK. Detailed HMRC guidance on UK visits. How does this sit with modand therefore eligible for such overseas remittances runs to over 300 pages so the ern assignments? workday relief if the individual: current position is undoubtedly compli• What happens if someone works non• is resident in the UK on the basis that cated. The consultation document therestandard hours or periods? their only home is in the UK; or fore includes: • How do you address countries where • has more than one home and all of their • Proposals to simplify the existing remitrental of property is the norm – why homes are in the UK. tance basis rules - foreign currency bank should a short-term single assignee accounts have to retain an empty property in

Minimum number of ‘connection factors’ to trigger UK residency

International HR Adviser Autumn

TAXATION their home country to get overseas workday relief?

• The definition of a working day is any day where more than three hours of work is undertaken. How can this really be measured given modern communication methods and why is 2 hours 59 minutes acceptable but 3 hours 1 minute a potential problem?

• Why should an individual have to spend more time in a single country other than the UK – what if their employment requires them to work across multiple countries?

Why have remittance rules for overseas workday relief – surely it would be better for individuals to get an expatriate relief which encourages assignees to spend their money in the UK? Responses to the consultative documents have been submitted by many different parties and we all now await the publishing of the summary of such responses, together with the draft legislation for the 2012 Budget. Further updates will follow in subsequent editions of 'International HR Adviser'.

Free Subscription To ensure your free subscription to International HR Adviser, courtesy of Lloyds TSB International Andrew Bailey is national head of expatriate tax at BDO LLP. He has over 29 years’ experience in the field of expatriate taxation. Andrew is indebted to Andy Windibank of BDO for his assistance in compiling this article.

BDO is able to provide global assistance for all your international assignments.

If you would like to discuss any of the issues raised in this article or any other expatriate matters, please do not hesitate to contact Andrew Bailey on +44 (0) 20 7893 2946, email Andrew.bailey@bdo.co.uk

please complete and return the free subscription card enclosed, or email your name, company name, address, email address and telephone number to helen@internationalhr adviser.com

Autumn International HR Adviser

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16

International Presenting

Improving International Presentation Skills Presenting in a multicultural or monocultural environment is not without its challenges. There are some important points to consider to avoid confusing, embarrassing, disrespecting or even offending your international audience.

However, to create both a memorable and informative presentation, an educated approach backed by research and consideration for an audience’s culture is required.

At a general level, preparation is needed to find out how the people will receive your presentation. As with any address, a clear understanding of needs and expectations is essential to ensure the information you deliver is pitched at the right level. In addition, use your contacts to find out what the audience will be receptive to and choose examples and content that will relate to their cultural world.

Giving a clear structure to the presentation, signposting and delivering information in bite-sized chunks is particularly helpful to overcome language barriers.

Using short sentences which avoid jargon or colloquial expressions and references will also help make your content more easily understood, as will slowing the pace of speech.

Images can be helpful too. However, keep in mind the example of an American executive who presented to a Latin audience, using a doughnut theme along with images. The doughnut was designed to illustrate the ‘gap’ in the current product portfolio. However, one of the audience approached him afterwards to politely ask: “What is a doughnut?”

When it comes to imagery there are no hard and fast rules, each culture is individual and research will reveal which pictures could be understood, be helpful and resonate within a presentation. The Islamic cultures of the Middle East do not have representational art and so cartoons should be avoided, however, if you are clear that your slide is a representational image the audience will understand. Similarly, the doughnut example could have worked if the presenter took a moment to explain what a doughnut is and exactly how it represented the company’s issue, instead of assuming understanding.

Humour is another area which should International HR Adviser Autumn

be handled with care. British people often use humour to reduce the formality of an occasion. However, even if the joke itself does not offend, some more formal cultures like that of Germany for example, may think you are not taking the situation seriously enough if you act like a comedian.

Humour can be helpful as an icebreaker, and one way to use it successfully is to indicate the humour of everyone in the current situation – perhaps by referencing the very presentation you are delivering.

This should not exclude or embarrass anyone but may just get people smiling at the outset of your speech.

The number of slides used in a presentation should also be thought about carefully and depend on the audience. In Western Europe it is important to limit the number of slides used. However, when presenting to an Asian audience the feedback is often consistent: “We would have liked to see more slides”.

If you are presenting in Germany and Scandinavia don’t be overt with the sales pitch, let the facts speak for themselves and be sure to include lots of detail. If not enough information is provided, British and American presentations can be seen as insubstantial to these audiences. Conversely if you come from a culture which prefers to provide a lot of background information, be aware this may be seen as irrelevant by anyone originating from the USA or the UK. If presenting in Latin countries don’t focus too much on being precise. Eloquence and charisma will traditionally have your audience wanting to listen for longer.

In the hierarchical countries of Asia, Africa and Latin America be sure to introduce yourself and your job title carefully, so your level of importance is clear. Seniority must also be acknowledged. You should know who the most senior person in the room is and gaining eye contact with them while you are speaking will demonstrate respect.

Dress should also be considered. I remember one executive presenting to a 100 people from Turkey and the Balkans in rolled up sleeves, with no tie or jacket due to the heat. This was seen as disrespectful and he successfully alienated the

entire audience.

However, other misunderstandings can also occur. One speaker was offended at a recent conference, because a table of Koreans appeared to be chatting throughout his entire presentation. It turned out however, they were intent on understanding his every word and so were translating for each other.

There are many cultural rules which relate to different countries, and in this article I have touched on merely just a few.

However, if there is one key to presenting successfully to an international audience, it is to undertake some research to understand your audience’s perspective.

James Shirreff, a negotiations and cultural awareness specialist and an associate trainer with Farnham Castle.

Farnham Castle is a world leader in Intercultural Business Skills training and Global Mobility Programmes.

It provides a comprehensive range of face to face, live web- based and Podcast format programmes designed to provide the cross- cultural skills and understanding required to be more effective in the global business environment. www.farnhamcastle.com

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IMMIGRATION

Betwixt And Between: How Increasing Scrutiny On US Immigration Is Limiting The Options Of Foreign Employers Companies looking to send employees to the US for short-term temporary work are increasingly finding themselves stuck between a rock and a hard place. Without a presence in the US already established, the traditional transfer options are not available. At the same time, if they maintain important US clients and have a need to send employees to render services on their behalf, entry under the Visa Waiver Program (VWP) or a business B-1 visa can be risky, as these may be viewed by immigration officials at port of entry as work trips, which are forbidden under these categories. Traditionally, a B-1 in lieu of H-1B visa (a hydrid work/business) visa has been on the table for such circumstances, allowing employers the flexibility to render services in the US without running foul of US visa laws or incurring unnecessary expenses to establish a US company solely for the sake of sending over a few employees to fulfil contractual obligations (also a somewhat risky strategy). However, in recent months this hybrid visa has fallen under fire from protectionist interests in the US, resulting in a back-to-thedrawing-board situation for many foreign employers.

For many companies, their business imperatives do not necessitate the physical relocation of an employee, because no US job exists, thus rendering a work permit inappropriate. For other companies, they may not have a US entity and thus cannot sponsor employees for such projects, a fundamental element of working visas.

Often, a foreign company maintains contracts with US clients who expect them to furnish specialised services, often related to a product. Thus, they would like to send over specialised foreign employees on short-term projects where no US sponsoring entity or position exists. However, these trips can be misconstrued by immigration officials, and in the wake of the worst global recession since the Great Depression, business travellers to the US International HR Adviser Autumn

are coming under increasing scrutiny and can be extensively questioned at port of entry about their intentions.

One compromising solution to this predicament has been the visa category called ‘B-1 in lieu of H-1B,’ which is a hybrid of a B-1 (business) visa, and an H-1B, the professional occupation category. The B-1 in lieu of H-1B visa is not considered a long term option and is typically only issued for one year, although there is inconsistency in this regard. The first major requirement for this visa category is demonstrating ties to the country of application — the temporary business (B-1) prong of the category. Secondly, the employee must remain on the company’s payroll abroad; they cannot be paid in USD or receive compensation for services rendered in the US. Thirdly, the employee must meet the professional occupation requirement — the work (H-1B) prong of the category. This means that the employee is in a role which requires the minimum of a Bachelor’s Degree in a related field, or alternatively, if they do not have a university degree, possesses the equivalent work experience.

The B-1 in lieu of H-1B visa does not exist in the relevant US legislation, the Immigration and Nationality Act (INA), but rather in the Foreign Affairs Manual (FAM), which is the guidance for consular officers posted at US Embassies abroad. It should be highlighted that the US Embassies abroad are part of the Department of State (DOS), a different governmental body than that of inspectors in the airports upon entry, who work for Customs and Border Protection (CBP). Different governmental bodies can have different ideas about visas, entry and permissible activities under a certain visa category, which is perhaps where some of the controversy has arisen.

As the B-1 in lieu of H-1B is a discretionary category, essentially designed by the Department of State, admittedly it is not as safe and does not provide the same amount of protection upon entry as a petition-based work permit, sponsored

by a US entity, such as an L-1 or H-1B. However, the B-1 in lieu of H-1B visa has provided myriad benefits while maintaining good-faith immigration principles. Indeed, the genesis of the category lies in discerning DOS officials who realised the difficulty in pinpointing travel activities within a work/business dichotomy, situated in the context of a world economy which has gradually shifted from manufacturing to service activities. It is designed to benefit the foreign employer in the furtherance of international trade and commerce.

It has traditionally allowed employees expanded coverage on their B-1 business visas, yet without stepping on the toes of the L and H work permit categories.

From a compliance perspective, the category provides an extra layer of protection for companies who might otherwise have unwittingly sent over employees under the VWP or a business visa because a petition-based visa was unavailable or inappropriate. The B-1 in lieu of H-1B visa affords some protection to employees being sent to the US, particularly service-oriented employees whose activities may seem to blur the work/business boundary in the eyes of immigration officials. With this visa, the due diligence is conducted upfront, at an interview with an American consular officer at an Embassy abroad, before the employee ever steps foot in the US. The future of the category, however, seems in doubt, as it has been increasingly misunderstood as a ‘shortcut’ to work authorisation and as a threat to US jobs. In April of this year, US Senator Chuck Grassley of Iowa wrote to Secretary of State Hilary Clinton and Secretary of Homeland Security Janet Napolitano to express his concerns about what he feels is the misuse of the visa category.

He also expressed other concerns about companies evading the H-1B annual cap, prevailing wage requirements, verification of claims by employers as to activities undertaken in the US and the overall concern that the category can be used to

IMMIGRATION ‘defy the intent of Congress.’

The Department of State responded to his letter in May 2011, explicitly confirming that they are working with the Department of Homeland Security (DHS) to ‘consider removing or substantially amending the FAM note [he] referenced.’ Whilst any dramatic change will take some time, it seems likely that the category will be either amended or eliminated entirely, to the decided detriment of potential applicants and their employers. At the time of going to press DOS officials have unoffically stated that they intend to remove the annotation from the visa-making it a simple B-1/B-2 business/ tourist visa. Instead DOS will make a note of their database for CBP officials to see. The risks of inconsistent adjudication upon entry will in all likelihood increase.

Whilst these concerns are issued from the perspective of protecting US jobs in an uncertain economic climate, they largely miss the point. The intention and practical use is not to job shop. Rather, the great benefit of the B-1 in lieu of H-1B category is that it lends foreign employers the flexibility to render international services in a mod-

ern, globalised economy. Unfortunately, immigration has not kept up-to-date with business needs and commercial reality. The B-1 in lieu of H-1B visa is an important hybrid which should be explicitly written into law, rather than existing as a discretionary subsection in a field manual to consular officers. Such a relatively informal mechanism, in the criss-cross, cause-and-effect world of immigration, has engendered confusion and suspicion and led to false conclusions about foreign intent. The visa type should be entered into in the INA, so as to facilitate international business travel and promote consistent application and acceptance across Embassies worldwide and ports of entry domestically.

The category is largely used to fulfil contractual obligations of employers set in the context of short-term projects of temporary duration where no US job and often no US entity exist, and which essentially benefit the foreign employer.

Ultimately, the B-1 in lieu of H-1B facilitates trade and commerce between foreign nations and the US and offers the opportunity for mutual growth. Ironically, such protectionist sentiments by

Senator Grassley and others who view it as a backdoor to US immigration run the risk of throwing the benefits it brings to the US economy right out the window.

This article was researched by Lauren Lantz.

Charlotte Slocombe Charlotte has been with Fragomen since 2005.

Charlotte is the Department head for the US Foreign Consular Practice in London, and supervises a team of five professionals including two US attorneys and specialises in US out-bound immigration through the EMEA and South American regions.

Solicitor and US Attorney T +44 (0) 20 3077 5250 F +44 (0) 20 3077 5001 E cslocombe@fragomen.com 4th Floor, Holborn Gate 326 - 330 High Holborn London, WC1V 7PP United Kingdom

Autumn International HR Adviser

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Corruption Risks in Russia

Internal Fraud And Management Corruption Risks In Russia: The Human Relations Aspects When the author of this article is being asked what is the main HR risk in Russia, all of his experience is shouting – it is internal fraud and management corruption! Indeed, a survey conducted in 2009 by a major international consultancy claims that nearly 50% of companies interviewed in Russia have encountered bribery and corruption. This very high number certainly means that the problem cannot be of the exclusively external nature. It is not just government officials who are corrupt – the risk runs deep for the personnel employed by the corporate sector. Another firm states that the 7% level of average losses due to corporate fraud which experts believe companies to suffer from across the globe is a ‘conservative estimate’ for Russia.

Based on the official statistics view, however, this is a terra incognita. In the first eight months of 2011, only 2,387 crimes ‘against the interests of service in commercial and other organisations’ – the official Russian term for internal fraud and management corruption – were detected, including just 1,277 instances of kickbacks (during a similar period in 2009 these numbers were 3,303 and 1,440, respectively).

This is ridiculously small and for everyone with some experience in Russian corporate environment, the official statistics of internal fraud and management corruption does not make sense. These crimes just do not get reported to the regulators by their main victims – the corporations, who treat them as ‘internal matters’.

So, how can companies deal with internal fraud and management corruption in an environment governed by the principle, ‘what you are not stealing from your employer, you’re stealing from your family?’

First of all, it is important to understand that corruption in Russia is deep seated and cannot be eliminated without a shift in individual employees’ intellectual and cultural paradigm.

According to Sergey Martynov, president of the Russia Chapter of the Association of Certified Fraud Examiners, there are several key manifestations of the ‘Fraud Triangle’ International HR Adviser Autumn

(Opportunity-Pressure-Rationalisation) that make internal corruption such a widespread phenomenon in the country.

Weakness of anti-fraud legislation in relation to commercial organisations is one factor thanks to which kickbacks are so opportune to employees who wish to enrich themselves at a cost to their employer. Punishments stipulated by the Russian Criminal Code for crimes against the interests of service in commercial organisations are softer than for official bribery. We should also mention insufficient enforcement even of the existing legislation. The statistics of just 1,277 detected instances of kickbacks for the economy the size of Russia is striking. The fact that zero instances of kickbacks which caused companies serious damage have been detected in 2011 shows, in our view, how far this official statistics is removed from reality.

In our opinion, it is, however, the availability of unregistered banknote cash in the Russian economy that makes management corruption and kickbacks such an easy opportunity. The process is known as 'obnalichka'. This is a fee-based practice of converting money from current accounts into cash banknotes via a series of mainly fictitious trading transactions. This conversion is, by definition, non-regulated.

Providers of obnalichka services typically run a number of shell legal entities registered

in the names of front individuals or corporations. When regulatory authorities show interest in the operation of such an entity its real managers usually abandon it and create new ones.

The banknote cash received via these transactions is not included in official financial reporting and could be used at its holders’ discretion – including for bribes and kickbacks. Moreover, it makes investigating management corruption and fraud particularly challenging in Russia as banknote cash is readily available and bribes paid in banknote cash are hard to detect.

The obnalichka providers exist and prosper because they enjoy protection by corrupt law enforcers and, of course, there is nothing that an HR manager could do about this phenomenon. It is particularly threatening the area of procurement of goods and services. According to Sergey Kim, a Russian anti-fraud expert, this is where 80% of internal fraud takes place.

Internal audit and security could run regular due diligence on suppliers and help HR with employee screening. HR managers, however, might consider the benefit of rotating personnel in the procurement field.

Salaries in Russia have grown over the past decade but remain relatively low (the average was about €500 a month in 2010, although, expectedly, exceeding €1,000 level in energy and finance). This, combined with a weak social security net, creates pressure on employees to look for extra income. Although there are pressures for companies doing business in Russia to keep the costs down, an HR manager should, in our view, be reminding other executives that very low salaries increase the risk of kickbacks. It is particularly important to make sure that middle managers regard their compensation and benefit levels as fair compared with those of the senior management (in Russia, imbalances between the levels are often striking).

Finally, there are intellectual and cultural roots that help Russian employees to rationalise fraud and corruption.

These roots include alienation from the ownership of results of economic activity in the Soviet era combined with the widespread cynicism of the two last Soviet decades – the

Corruption Risks in Russia stagnation years of Leonid Brezhnev and his successors. Things did not get better during Mikhail Gorbachev’s perestroika or ‘the wild east’ decade of the 1990s ‘bandit capitalism’. The result is the belief system where an employee is persuaded that he or she cannot succeed with their employer simply on the basis of their merits; that the only support systems on which a person can rely are informal – mainly, family and friends, and, therefore, formal systems, including one’s employer, do not deserve any true respect but the lip service; and that, at the same time, success is measured by consumption.

It is natural to expect people operating inside this value and belief system to explore opportunities to steal from their employers. Whistleblowing – the most effective means in detecting fraud and corruption – is stamped out by this culture as it threatens the existence of informal networks.

A shift in corporate culture must supplement the implementation of more effective control and compliance systems.

According to Martynov, corporate culture must be ‘formed consciously by the company by implementation of special programmes and activities’. The culture must ensure that ‘employees’ social needs are to be satisfied only in connection with

the company’s goals achievement’ and ‘it has to be soundly argued to employees as something is done for their benefit’.

An HR manager should, in our view, remember that the background employee culture has a lesser focus on compliance and relies more on informal social networks both inside and outside the company. Their role is to be more proactive in strengthening the positive value of informal networks and weakening the negative ones. This means ensuring that gaps between levels of corporate hierarchy do not become barriers to communication or contribute to employees’ alienation. If the team spirit with shared values is maintained, it will make ‘stealing from one’s employer’ almost as bad as ‘stealing from the family’. This also means conducting regular anti-fraud and anti-corruption trainings in cooperation with internal audit and rewarding whistleblowing.

The culture should equally punish fraud and reward legitimate initiative and promotion of corporate interests. Russian employees should see that they are equal partners, with equal career prospects, with their foreign colleagues. This, combined with stringent control, should help reduce the company’s exposure to internal fraud and management corruption.

Oleg Babinov, heads The Risk Advisory Group’s Russia, Eastern Europe and Eurasia practice and is the Group’s key expert on politics and business in Russia and the former Soviet Union. He was a founder of the Group in 1997.

Oleg’s practice, based in Moscow and London, specialises in integrity and anti-corruption due diligence, strategic intelligence and political risk analysis in Russia and other FSU countries.

Since late 1990s, the practice has completed numerous assignments in the areas of employee screening and fraud and corruption investigations.

Russia Contact Details: Glazovskiy pereulok 7, 5th floor, Office 14 Moscow 119002 Tel: +7 495 937 7080 United Kingdom Contact Details: Russell Square House, 10-12 Russell Square London WC1B 5EH Tel: +44 (0) 20 7578 0000 www.riskadvisory.net

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The 2012 Corporate Relocation Conference & Exhibition

Monday 6th February, Hotel Russell, Russell Square, Bloomsbury, London, WC1B 5BE

FREE SEMINARS Chaired by Martin Humphrys, Humphrys’ Education Winner of Relocation Personality of the Year 2009 10.30am — Third Culture And Cross-Cultural Kids – Who They Are And How We Can Help!

International mobility continues to increase with the profiles and experiences of international and globally-mobile families becoming more diverse. Understanding the benefits, challenges and potential long-term effects of third culture and cross-culture children is important for parents, educators, counsellors, educational consultants and relocation specialists, human resource managers, and any others who influence important decisions, particularly school selection and language learning, as these choices have a lasting influence on learning, academic outcomes and the formation of personal identity.

Our speaker is Mary Langford, formerly Deputy Executive Director of the European Council of International Schools and now recently-appointed as Head of Primary at the King Fahad Academy in London. A US/UK dual national with over 30 years’ experience of international education as Admissions Director, Teacher, Communications Director, and Head, she frequently writes, speak, and teaches on this topic.

11.30am — Relocating Successfully

As an expatriate living in the UK, or a professional liaising with expatriate, it is vital to communicate effectively.

Join FOCUS for an insightful and informative talk on setting expectations and tailoring communication to meet individual needs.

12.30pm — Tax Planning Essentials For Expatriates In The UK

This seminar covers residency and taxation for non-domiciled individuals living in the UK, including an overview of what is meant by non-domicile status and the taxation choices available annually. It looks at the interaction between tax systems in the UK and other countries, particularly the USA. Recent changes and proposals will be covered, including strategies to minimise taxes and manage the complex compliance burden.

Presented by Frank Hirth plc.

1.30pm — “All You Wanted To Know About Corporate Immigration But Were Afraid To Ask?”

“In the current economic climate governments around the world are reviewing and amending their immigration rules. This compelling seminar will focus on UK corporate immigration and provide a useful and interesting guide to the current UK immigration system, a review of recent changes, the challenges faced as a result as well as providing some practical solutions to help companies work effectively with the new system.

2.30pm — Strategic Partner: The Next Move For Global Mobility

This session will provide the results of ground breaking research undertaken by Deloitte to establish the key challenges facing global mobility in this ever changing world. In a recent global survey of HR and business leaders of Fortune 500 businesses we sought to establish the extent to which global mobility, as a function, is aligned to business strategy. The increasing challenges that international organisations are facing, from both a business and talent objective perspective, call for a more strategic approach to Global Mobility and the function as a whole. Is your Global Mobility function ready for its next assignment? Hosted by Emigra.

3.30pm — Setting Competitive Expatriate Management Policies: Current Trends And Best Practices

HR professionals in charge of managing expatriate employees must continually balance competing interests. Management wants to curtail costs, yet geographic talent imbalances require some mid-level to senior managers spend some time outside their home countries. A global economy that seemed to be improving, then appeared to stall, has made this balance even more precarious. Come and learn what other global employers are doing to adjust their expatriation policies to balance macro and micro forces now buffeting talent management. Hosted by Mercer.

Places at these seminars are free, but visitors must pre-register as there is limited availability.

To register your place on any or all of these seminars, please email helen@internationalhradviser.com or telephone Helen Elliott on 020 8661 0186 We look forward to seeing you there.

Repatriation

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Repatriation – The Real Costs Some see it as naïve that the corporate clients of relocation companies should consider the funding of repatriation packages, but when confronted with the facts, can they really afford not to? As I will examine, the financial costs of companies losing key staff as a result of a mismanaged repatriation are huge, but is there also an ethical dimension?

In the 1970’s two psychologists, Holmes and Rahe, developed a scale for measuring cumulative life stress, based on an examination of the medical records of over 5,000 patients. According to this scale, a score of over 150, made up from life events such as bereavement, divorce and bankruptcy, can result in serious stress that will, if left untreated, lead to mental health problems. When all of the factors involved in a relocation are added together, the score is 186. If we then add in further factors that are highly likely to accompany a relocation, that score shoots up to 301. Repatriation scores similarly high on the index.

The enormous costs to companies of sending an individual overseas are well understood by the relocation fraternity, and yet still, in 2011, we find it almost impossible to persuade our clients to fund repatriation management packages.

When candidate selection has been done and it comes to the careful negotiations with HR over the compensation and benefits package, how often are relocation support costs given a far lower priority than say, host country salary matching?

All of these complex calculations to ensure the middle ground between the employee being well rewarded for what will be a significant life change, and the company conforming to a cost-effective relocation policy, are utterly pointless if the assignment fails. As companies have started to understand this and the reasons why, (80% of failed assignments are attributed to a failure to adjust to the host culture), so they have seen the value of funding cultural orientation programmes through relocation providers.

But a worse scenario is being ignored; the assignment is a success, the transferee does a great job, the family stay for the duration but then because of mismanaged repatriation, the employee leaves the company for a better offer elsewhere. 60% of transferees have no defined role on their

immediate return and are “slotted in”.

20% of transferees will leave or be headhunted away from the company within 9 months of return, and 50% within 24 months, if they are not promoted or reassigned abroad. These figures represent a huge financial loss for the company and even those corporations with a culture that does not encourage a hand-holding approach to international assignments, should be able to appreciate the value of properly managed repatriation against the far higher cost of talent loss to the competition.

The impact of repatriation can be just as significant for the family as the original move itself. Sometimes referred to as “Inpatriation”, but more often as “reverse culture shock”, the return to home can provoke huge disruption for the family and transferee. In her book “Homeward Bound: A Spouse’s Guide to Relocation” (Expatriate Press 2000), Robin Pascoe defines reverse culture shock this way: "(It) is simply the shock of being home.

It's the reverse culture shock you experience in your own country when you visit places that should be familiar to you, but aren't; try to interact with people you should feel comfortable with, but don't; or face situations you should be able to handle, but can't. There can be no simpler way to explain it. Re-entry shock is when you feel like you are wearing contact lenses in the wrong eyes. Everything looks almost right."

These feelings can be worse than the culture shock experienced in the first weeks of the assignment. Feeling like a foreigner in a foreign land is expected; feeling a stranger in your own home is not.

Impact on the Employee The move abroad is exciting, usually involving a promotion or at the very least, an increase in peer status, and is playing up to the transferees strengths. The day to day impact of life in the new culture is more keenly felt by the partner and children, who are interacting with it on a far more intimate basis. The transferee on the other hand has been chosen for a particular skill set, usually including language skills where necessary, which are by and large appreciated by the new team as an asset. The transferee slots into a new work culture, with all of the social

contact that entails. The family on the other hand have a harder time.

As the assignment comes to an end, the transferee starts the closure process of the post, probably handing over to a locally based team or manager. At this point, home country HR should be back in touch, to start the career planning for the home move. However, 68% of companies provide no post-assignment guarantees, and this is going to have a dual impact on the employee.

Firstly, they will have a deep sense of insecurity. They may have taken their family away from extended family and friends, interrupted education programmes and careers, and for what? To return home with no job?

Secondly, they may begin to develop a distrust of the company. They have given their all, made the assignment or project a success, and their rewards in terms of higher salary and status, after three years of acclimatisation, seem like a distant memory. The figures are startling; • 60% of expats reported that their company did not communicate what they faced on repatriation • 33% were still filling temporary assignments 3 months after their return • 75% who obtained a permanent position on repatriation reported it felt like a demotion • 66% reported the skills learned during expatriation were ignored, which lead to 25% leaving within 12 months (2010, Center for Global Assignments).

Recent research indicates that the repatriation process is even tougher for female transferees. Dr Margaret Linehan of the Cork Institute of Technology writes in her paper “Work-Family Conflict and the Repatriation of Female International managers”; "All the issues of repatriation are enhanced for women executives…. Among other professional challenges felt by the repatriating female manager is the fact that the glass ceiling they hit before they left the country is still firmly in place… Traditionally women were not very good at making demands and were not strong enough in voicing these demands.”

Dr Linehan’s research also points out that women managers have a far greater responsibility within family situations than their male counterparts and are under Autumn International HR Adviser

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Repatriation greater pressure when coming home, to oversee the impact on the family.

Impact on the Partner The same issues that face the partner moving overseas, continue to be evident when returning home. The challenges that are faced in trying to reintegrate into a social and familial network are akin to having to start again. The relationships may have been neglected and there can be resentment on many sides – people at home didn’t keep in touch enough, the partner has also probably spent more time and energy on creating new alliances in the host country than on maintaining those back home. Then there is the issue of story fatigue; not everyone is as interested in hearing about the experiences of the partner in their life abroad than could be expected, and where a person's world view has been dominated by the host country, there can be a distinct feeling of not belonging once back at home.

Another issue, is the potential change in living standards. In order for the company to persuade the family to relocate, they have generally offered financial incentives, from generous housing allowances to the payment of school fees. On returning home, these are taken away and the lifestyle that the family has become used to is radically reduced. This is particularly a factor for Europeans coming home from the USA, where living standards are very high in comparison with the cost of living in most European cities.

Often, the ability of the partner to slip back into a career they left several years before is curtailed. Home country costs of living may have increased. Where a family relied upon two incomes before the assignment and are now reduced to one, the issues of a comfortable lifestyle are made more complex still. Financial issues are often at the core of relationship difficulties and these are so often a major factor in an unplanned repatriation.

Impact on the Children This is where the impact can be the most pronounced, and the most dramatic, especially for teenagers caught between school systems, deep friendships and hormonal angst. Where the assignment has been a long one, there is the risk of the child becoming a Third Culture Kid – far more familiar with the host culture than the home one. For them the return is a far greater challenge, as they are already at International HR Adviser Autumn

home and will be going somewhere completely foreign. Not only will they face a profound culture shock, they will also struggle with a sense of loss of identity as they leave their friends and peers behind.

Practical issues also loom large. If they have been able to drive in the host culture, and are deemed too young back home, a central part of their independence will have been removed. Using public transport, facing cultural issues around the freedom of children within the host culture, and potential gender role perceptions back home, can also raise enormous issues for the returning child. This can be particularly evident when children are moved from a liberal host culture, to a home culture with stricter social rules and expectations.

So how can companies be encouraged to take repatriation seriously?

The financial case. If there is one motivating factor for any of us to spend money, it is the thought that in the long run we will save money. The huge investment companies make in their globally mobile workforce, should be protected at all costs. An employee who moves to a rival company following assignment, is not just a lost investment, they are a potential competitor, taking all of the experiences they have had in opening new markets, overseeing international projects or just learning new skills, to a direct adversary.

The ethical dimension. There should be a level of social responsibility in any company towards its greatest asset; its people. Companies who undervalue their employees, should be frequently reminded of this, and of how a lack of investment in the assets that make it profitable, could eventually lead to it becoming uncompetitive. Profit aside, it cannot be ethical for a company to regard its’ staff as merely a tool. These are people, with lives, partners, children, hopes and dreams. Globalisation is increasingly regarded with suspicion following the banking crisis and the ongoing financial instability.

Companies should at the very least show they have a sense of social responsibility not just to the environment, but to their natural resources as well.

An effective toolkit for repatriation can help.

A Perfect Planned Repatriation: 9-12 Months Prior: • Confirm the exact date with the transferee, home and host HR and management • Let the transferee inform friends and

family of this date • Provide some way for the transferee to talk with others who have been through the process • Encourage the family to really cherish the remaining time they have in the host culture.

6-9 Months Prior: • Schedule an exit interview with host management • Contact home HR and management and have the transferee update them with the new skills they have • Start the financial planning process – have the family made aware of the changes they will face when they are back on host country income • Ensure tax management is in place for the transferee • Discuss with the transferee the probability of HR and relocation support with any likely housing issues in the host location • Discuss at this point, any issues with host country housing; dilapidations, deposits, etc • Notify schools of departure dates and contact HR in the home country – can they assist the repatriation with relocation support?

• Will there be support in the home country with school search?

1-6 Months Prior: • Re-engage relocation provider to supervise; - Property check-out arrangements - Travel arrangements - Closure of financial aspects such as bank accounts - Mail forwarding - Speak with Tax Advisor - Repatriation cultural counselling • Goodbye parties • Closure of relationships for the children – setting up of IT based “Keep In Touch” schedules.

Once back home: • Relocation support with housing and schooling needs • Partner employment support.

The bottom line in repatriation, is the bottom line. Even though profit should not be the only motivating factor in providing repatriation assistance, the loss of a valued employee to a competitor makes for a compelling reason to fund extra support.

Dominic Tidey EuRA Operations Manager E: dominic@eura-relocation.com W: www.eura-relocation.com

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TRAINING

“It’s A Done Deal - Just Make It Happen...”

As a global mobility professional, dealing with the day to day administration of a global mobility programme, it is probable that you may have experienced a done deal - an assignment which has already been agreed by the business without reference to policy or precedent which will commence imminently. The done deal often promises to pay the employee over and above what is appropriate for the role or host market and may also promise to move special pets, wine cellars and distant relations etc.

This scenario is very common indeed and can only be usurped by the self-initiated stealth senior move...whereby a senior employee may be working on a project overseas but sees no reason why she can’t repeatedly enter a country as a business visitor, provided she keeps quiet at border control and if questioned pretends not to be doing any active work - until, at worst, she is detained in prison.

Both scenarios can have serious longstanding negative consequences for organisations, including employee dissatisfaction, reputational damage and restrictions on future mobility to certain jurisdictions.

Why does this happen?

The simple answer is: • Process: The Global Mobility professionals in the organisation are not contacted before any discussions with the employee.

In a simple world this would be a simple issue to address. Draw up process maps making this a requirement.

However, in the real world, process maps are not always followed (quite rightly) when the business need is critical.

And how do you prevent managers and employees having informal conversations on potential international roles where unrealistic expectations may be set?

So the more involved answer may be: • Lack of Global Mobility knowledge: Those planning projects and negotiating assignment terms and conditions with employees may be unaware of company policies and procedures and country specific tax and immigration requirements • Risk taking: They want the employee in the new location fast and perhaps have International HR Adviser Autumn

over committed on the project plan.

The view is that the risk of being caught at immigration is minimal • One off ” or “Key player”: Providing additional benefits and allowances to certain key employees is sometimes seen as acceptable • Negotiated terms culture: The organisational culture is that packages are negotiated on a case by case basis • Lack of accountability: It’s the Global Mobility Specialists role to ensure the company is compliant.

Who can help mitigate the risk?

The HR Business Partner (HRBP) The HRBP exists in many of today’s organisations. The role of the HRBP has been identified as including the following; • Strategic partner • Administrative expert • Employee champion • Change agent Where the organisational design includes strategic HR business partners it is essential that they have a sound knowledge of the fundamentals of global mobility. So they can: • Manage expectations from the business line and employee • Prevent line managers setting costly precedents. The little extras provided to the “one offs” or “key players” seem a lot more costly when grossed up for all the associated tax costs. An ability to explain this in clear simple terms may in some instances be enough to prevent such extras being agreed in the future • Help improve the employee experience and consequently the assignment success rating. Employees will be treated equitably and should feel more inclined to accept international assignments in the future • Feel confident in responding to employee queries and empowered to make informed decisions.

Other key stakeholders All of the following are crucial stakeholders to help mitigate the risk of “done deals”. Some may have a very sound knowledge of Global Mobility issues.

Others may know very little about the process, policies and consequences of not adhering to both.

Finance - The implementation of international assignment cost estimates is invaluable to those in Finance. Their job is to ensure budgets are correctly managed and costs accrued for. If they are aware that international assignments have ongoing costs hitting the cost centre after repatriation they can accrue for this and ensure that the business are well placed to plan for these costs.

Reward - For companies venturing into the realms of international assignments, they simply do not know how to pay individuals on assignment. Educating the Reward specialists on how to review home notional salaries for pension purposes and repatriation, can help facilitate the ongoing movement of your globally mobile workforce. This may not seem important when someone is venturing overseas for three years, but it becomes very important on repatriation and requires very little effort. If you know a review is required on an annual basis and needs to be communicated to the employee, this is simple to do.

Travel - Very often in organisations the Travel Department are the gatekeepers of global travel. They know when an individual is booking a flight with a return date of more than 90 days. With a little education they could flag to the Global Mobility team when this happens. Perhaps this could lead to more business trips being recorded correctly with the correct tax and immigration treatment.

Recruitment - If the recruitment team are trying to recruit an individual from a competitor organisation on “Expatriate” terms, it is essential that they understand the company policy so they are not tempted to “match” a current package and cause issues with others in similar roles in the same host locations.

Line Managers - So many organisations continue to promote on the basis of functional meritocracy. They are technically fantastic, so should go up the ladder a notch. Most do their best to manage people but may not have the “people training” to manage expectations when employees go on assignment. With fundamental global mobility training they can knowledgeably provide guidelines to employees of company policy and point them in the direction of the specialist Global Mobility team to provide them with the expert advice and detail they require.

TRAINING Putting it into practice...

There are many ways the Global Mobility manager can start to build the “extended” Global Mobility Team. The most significant way is to form solid working relationships with HRBPS, Reward, Finance, Travel, Recruitment and Line Managers (depending on organisational structure).

Further practical steps include: • Involving the HR professionals in formal Global Mobility Training • Regular meetings/roundtables between the various facets of HR to share information on upcoming projects, international moves and compensation and benefits impacts • Technology – if possible provide access to global mobility data on your chosen technology platform • Reports – providing information and proactively asking for input of pipeline moves, terminations or other changes in circumstances.

What is everybody else doing?

Many organisations are beginning to see the value in training the wider HR community, Finance and Reward specialists.

There is an increasing demand for expert

Global Mobility training aimed at these audiences.

Some companies have successfully launched in house bespoke Global Mobility training on the fundamentals principles of Global Mobility and specific company policy and procedure.

Others are linking in with their travel departments to ensure all compliance is complete for business trips over 90 days.

Many other organisations recognise the value of training in eliminating the “done deal” and have it in their future plans but at present are continuing to fire fight and unravel issues when they are alerted to an international move.

Conclusion There are numerous reasons why companies may face the challenges of “done deals” and “stealth moves”. These reasons are not likely to subside in the near future so need to be managed more pro-actively.

With continuing cuts in headcount, it is prudent practice to extend fundamental Global Mobility knowledge into the wider HR community and interrelated departments.

At the very least, arrange meetings

regularly between the various facets of HR to build relationships and share information on upcoming projects, international moves and the impact on compensation and benefits.

Fundamental Global Mobility Training is absolutely essential for those involved in each stage of moving an employee from one jurisdiction to another. This training can be provided by your in-house Global Mobility team if resources allow or provided by an external training company.

Emma Gibbs specialises in organisation effectiveness and expatriate management and has spent over 15 years working in Global Mobility as both a specialist consultant and in-house corporate manager.

Emma is the Managing Director of Expat Academy Ltd, which provides specialist global mobility training to in-house corporate professionals.

Please contact Emma at emma@expat-academy.com.

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‘The great thing in the world is not so much where we stand, as in what direction we are moving.’

OLIVER WENDELL HOLMES

Transatlantic Taxation Expertise – Protecting Income & Wealth Are you moving to the UK or the US, already living overseas, looking to establish or expand a business, or planning to buy assets in another country?

With over 35 years experience and offices in London and New York, we help you navigate the complexities of international tax and accounting. This experience enables us to provide insightful solutions to your Personal Tax, Family Wealth and Business Advisory requirements.

We work with you to help optimise the tax you pay, ensure your legal compliance and maintain your wealth.

To free yourself from complex tax issues, please contact Mark Walters at markw@frankhirth.com

Frank Hirth plc 1st Floor, 236 Gray’s Inn Road London, WC1X 8HB United Kingdom Telephone: +44 (0)20 7833 3500 Email: enquiries@frankhirth.com

LONDON . NEW YORK www.frankhirth.com

SURVEY

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Emerging Markets – In the Spotlight The term “emerging markets” means different things to economists, diplomats, and product managers, but to relocation professionals it generally means locations where normal mobility policy and programme dynamics do not function effectively in some way.

The cause may be a lack of local talent, which forces corporations to import qualified employees. It may be a lack of local infrastructure, which makes customary housing, schooling, and other amenities scarce or even unavailable. It may involve transportation, security, or political instability. All contribute to a situation in which exceptions to policy, workarounds, and unbudgeted expenses are to be expected—an unpredictable and undesirable set of factors in any business model.

Cartus recently conducted a survey to help identify the new locations to which major corporations are sending their assignees, and to explore the challenges they and their assignees are facing. A total of 116 responses were received, representing a solid and diverse global breadth of experience.

Emerging Market Choices A total of 44 countries were named by respondents among their top three emerging markets. The most frequently named locations were Tier II, III, and IV China, Tier II, III, and IV India, Russia, and Brazil—the oft-identified BRIC countries. In fact, more than half of all respondents (62 of 116) named China as one of their top three emerging markets and nearly half (52) named India. It is important to reinforce that as represented here, “China” and “India” do not mean the countries per se—they are already well established locations for assignments—but specifically Tier II-IV cities, reinforcing the prominence of these locations as up and coming destinations.

Beyond these markets, however, the widespread number of locations is a reflection of how dramatically companies’ assignment volumes are expanding geographically. Additional proof of this can be seen when comparing these locations to the typical volume patterns of our clients. Over the past five years, the Top 20 locations of our clients have remained relatively static, with only

minor changes in rank and only a few new countries appearing in the top rankings. Looking ahead, only four of the top 25 emerging markets named in the survey (Brazil, Panama, Malaysia, and Russia) have ranked among our current top locations in the past, indicating the degree to which these new locations can be expected to play a larger role in company strategy. (China and India overall have been among the top-ranked Cartus locations in the past, but not the Tier II-IV cities as specifically singled out here).

Of note, respondents to the survey identified more countries in EMEA than in any other region, with Africa emerging as the big leader in projected volume.

When asked about the importance of emerging markets to company strategy, 51% of respondents said they were currently more important than traditional markets. When asked about relative importance of these markets over the next two years, however, that number rose to 68%—more than two out of three.

Given that corporations have a high need to succeed in emerging markets, the

Chart 1: Top 25 Emerging Market Locations (Source: Cartus 2011 Mobility Challenges in Emerging Markets)

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Chart 2: Regional Distribution: Emerging Market Volume (Source: Cartus 2011 Mobility Challenges in Emerging Markets)

fact that many of the identified locations have recently experienced political instability or unrest, highlights the relevance of a survey question on the measures corporations have implemented or considered, to deal with geopolitical upheaval or instability in an emerging market.

Security and travel restrictions led the responses, with evacuation not far behind, but increasing commuter or business travel options to avoid longer-term relocations came third, with more corporations saying they are considering this than any other measure.

Exceptions and Policy Adjustments Mobility policy exceptions are endemic in emerging markets and occur there much more frequently than in traditional markets, indicating that corporations are likely finding it more difficult to secure assignees for emerging markets without some additional inducement, even in the case where they have separate policies for emerging markets, which nearly onethird of respondents (31%) say they have.

When asked which policy elements they were most likely to add or adjust, more than half of the respondents (52%) mentioned hardship allowances, with an additional 27% including assignment incentives or foreign service premiums.

Given that a lack of infrastructure is a common thread in emerging markets, the focus tends to be on establishing basic

support systems as soon as possible. This effort can divert attention away from the erosive effects of culture shock, which can be equally overpowering. The lack of assistance in this aspect of supporting the assignee and family, through intercultural and language training, was not mentioned by respondents, but is an issue our clients often mention as a lingering barrier to productivity and assignment success.

Business Drivers A basic consideration in emerging markets mobility is why corporations are sending employees on assignment. Like long-term assignments overall (as measured in the Cartus 2010 Global Policy & Practices Survey) the main business driver for emerging markets is to provide local leadership (68% of responses). The second-ranking response (at 64%, only four points lower) was to provide projectbased expertise, which is a tactical driver that is much more strongly associated with short-term assignments.

Challenges for the Future More than half of respondents (51%) said that attracting candidates with the required technical/business skills is one of the most significant challenges related to emerging markets. Despite this practical focus, however, respondents recognise how important working effectively in a strange environment can be. For this reason, the #2 challenge was employee’s

Chart 4: Policy Elements Most Likely to be Added or Adjusted (Source: Cartus 2011 Mobility Challenges in Emerging Markets

International HR Adviser Autumn

Chart 3: Importance to Overall Business Strategy – Next Two Years (Source: Cartus 2011 Mobility Challenges in Emerging Markets)

ability to adapt successfully to the locations and the #4 challenge was attracting candidates with the required language and intercultural skills.

A key finding in this question is the fact that financial issues (the ability to predict and control costs) ranked fifth in the list of challenges. This suggests that emerging markets are so critical to future business success that the actual costs fall in priority below other considerations related to getting the job done. Clearly, there is a dynamic balance between controlling costs and assignment success that mobility professionals are continually managing. It is an issue that elevates the importance of making good decisions—in assignment policy development, programme design, and employee selection—to a higher level than in traditional international assignments.

As global assignments into these new and less traditional locations continue to grow, organisations’ understanding of the issues and challenges on the ground will go a long way toward helping them structure policies and programmes that support assignment success.

Cartus’ 2011 Mobility Challenges in Emerging Markets survey is available, along with further best practices policy and programme materials from https://www.cartusmoves. com/emergingmarkets/ or contact trustedguidance@cartus.com. For further information about Cartus visit www.cartus.com

Chart 5: Most Common Challenges (Source: Cartus 2011 Mobility Challenges in Emerging Markets)

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32

Benchmarking

RESISTING INERTIA: Auditing and Benchmarking Your Global Mobility Programme According to Newton’s First Law of Motion, a body’s motion remains constant unless an external force acts on it.

We call that tendency of things not to change direction “inertia.” And inertia can apply not only to bodies with mass but to corporate programmes.

We have all seen how, once an HR programme gets going in one direction, it tends to persist in that direction unless some outside force interferes.

Your company’s global mobility programme is subject to inertia: For better or worse, it is moving in a specific direction. But is it moving in the right direction? If not, you need to find enough outside force to redirect it.

Signs of inertia Your company has been sending employees to work outside their home country for years. But do you have a clearly stated global mobility strategy? Is your expatriate compensation policy documented clearly and communicated well? Do you know all the inputs and calculations that go into your compensation packages? Are you using the right peer companies to benchmark your mobility programme’s effectiveness? Does your expatriation programme have a positive ROI over a meaningful time frame? In short, do you know for sure whether your global mobility programme needs fixing?

If you cannot answer “Yes” to all of these questions with confidence, it’s time to evaluate your global mobility programme and determine whether you need to chart a new course for it.

How to get your bearings The most important consideration going into an audit is having a clear understanding of why your company moves employees abroad. Is it to broaden the experience for your best talent? To provide scarce managerial help until local managers can be trained? Is the nature of international assignments the same in all countries and for employees at all career levels? Is it appropriate to have one policy International HR Adviser Autumn

that applies to everyone? Or should you have tiered policies to allow for specific local situations?

You should also consider your competitive environment. If you are in financial services, for example, you do not want to compare your global mobility policy to those of energy companies, which often have features particular to their need to man remote extraction sites.

Some industries and some specific companies have cultures that truly foster mobility. So, if your employees know when they walk in the door that mobility will be expected, your policies may not need to be overly generous. In that case, you should not benchmark against companies whose approach to mobility gives expatriates a lot of customised, exceptional treatment.

You need to know who your competitors are and how they are handling expatriation. Do you want to benchmark against your industry, your region, or specific companies?

Calibration: What to audit Once you know what to expect, you should analyse your company’s compensation packages and review their elements: • How do you determine each allowance?

• What are the assumptions made – both implicit and explicit?

• What is the desired level of compensation resulting from those allowances?

At the market? Above the market?

• Do the answers to these questions align with your desired competitive position and business needs?

It is important to conduct a simple yet thorough review of the actual package calculations to ensure that the data source is correct, and that you are using accurate employee and assignment demographics – from salary and family size to home and host locations. This is important both in automated environments (where payroll data is uploaded and processed via electronic files) and in

those that rely on a high level of manual input (such as “homemade” Excel files).

Then, you should review the actual processes used to determine and provide compensation information. Who provides that information? Internal employees? Are these services outsourced? (Should they be?) What role does each person have?

Are they all following the same, correct procedures and using consistent, correct sources of information? At this point, it is important to verify that your global mobility policy is clearly documented, agreed to, and adhered to by everyone involved in administering it.

Examine the whole process from start to finish, making sure that what is supposed to be done is being done, that it is done in a timely way, and that it is done consistently and correctly.

Charting a new course: Where to look Where are you likely to find opportunities for cost savings and programme effectiveness?

• Your housing policy may be a good place to find cost savings. Reconsider assumptions made for housing costs in the assignment location. Setting reasonable expectations in employees’ minds before the assignment begins is important in curbing housing allowance expenditures and costly requests for exceptions. Assignments are temporary. Assignees should not expect to duplicate their home country housing standards in the assignment location.

• The Goods & Services Differential (or, “Cost of Living Allowance”) is another area to focus on. When reviewing the way the differential is determined, be sure that no benefits are duplicated. Some employers unknowingly provide separately some of same items that the differential includes. For example, many companies provide transportation assistance in the form of a company car or allowance. If so, the differential should exclude these elements to

Benchmarking avoid duplicating benefits.

• Exchange rates and relative inflation in the home/host locations change over time – and recently these conditions have been quite volatile. In some cases, the level of allowances required can be lowered considerably because of those changes. Economic conditions may also turn the other way, and packages should be updated to ensure that you compensate your assignees fairly.

• Retention is an important yet underused indicator of a mobility programme’s effectiveness. Consider the number of assignments that end prematurely, the achievement of assignment goals and objectives (to the extent that goals have been clearly established) and, upon repatriation, whether the employee can be redeployed internally. If not, your company is losing the experience that your expatriates gain while on assignment.

What measures do you have in place to ensure that returning expatriates will want to stay with the company when the assignment is over?

Overcoming inertia Senior HR managers and other stakeholders in expatriation need to remember to periodically step back and determine whether your global mobility programme is properly aligned with business goals – and meeting expats’ needs.

Pay special attention when changing policies or practices, and when introducing new systems or people to the expatriation process. It takes real discipline to verify whether “how it’s always been done” makes sense in the current environment.

Regular auditing and benchmarking help you to take a fresh look at your mobility policy, review mechanics, and make sure that no changes in your company or your business environment warrant an adjustment in policies or processes.

Regular realignment of your mobility programme can ensure that your overall talent management strategy yields results that benefit both your company and your expatriate workforce. Don’t let your mobility programme run on inertia alone.

Steve Nurney leads Mercer’s US Global Mobility Center of Excellence and has extensive experience in managing and consulting on international assignment programmes. You can reach Steve at steven.nurney@mercer. com or +1 203 229 6103.

Mercer is a global leader in human resource consulting, outsourcing and investment services, with more than 25,000 clients worldwide. Mercer consultants help clients design and manage health, retirement and other benefits and optimise human capital.

The firm also provides customised administration, technology and total benefit outsourcing solutions.

Mercer’s investment services include global leadership in investment consulting and multimanager investment management.

Autumn International HR Adviser

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country update

35

The Netherlands Culture and character

The Kingdom of The Netherlands, parts of which are also referred to as Holland, is located in northwestern Europe. About one-third of the country's low, flat land, lies below sea level.

A network of dykes and canals has been constructed to prevent the flow of North Sea waters from reclaiming more land.

This country of 15 million is one of the most densely populated in the world.

Traditionally The Netherlands has enjoyed a stable and prosperous economy. However, the 2009 global recession hit hard and caused unemployment and budget deficits in a country that had previously marked 26 consecutive years of growth. Industrial activity is predominantly food processing, chemicals, petroleum refining, and electrical machinery.

A 2010 government drive to focus on the service sector aims to stimulate growth from sources both within and outside of the country’s borders.

The Netherlands was among the 11 founding European countries that established the Euro currency in January 1999.

It is the national currency.

A newcomer's perspective Foreign residents and visitors should feel comfortable in The Netherlands. The Dutch are renowned for their mastery of foreign languages. English is the second language, used predominantly in business, and German and French are also widely spoken.

Having escaped the bombing of World War II, Amsterdam presents an almost museum-quality atmosphere, with charming houses of classic Dutch style lining the canals. The country abounds in beautiful areas that reflect the Golden Age of the 17th century, and its museums are full of artistic treasures. With twice as many bicycles as cars in the country, newcomers will see pedal power used to get everywhere, from work and school to the countryside.

The homeland of Rembrandt, Vermeer and Van Gogh, this small country is also responsible for innovations like the modern stock market, artificial kidney and the compact disc. Art, science and development have been a part of the Dutch history of discovery and invention.

Nationalistic, independent, defensive of freedom of all kinds, open, friendly, straightforward: these all describe the Dutch personality. Strong opinions will be forcibly aired, and the rights of individuals are given high priority. The Dutch are very aware that their small nation exists in an international context and are generally hospitable and friendly toward foreigners.

There is, however, a formality and reservation in social and public behavior which may give a contrary impression.

The Dutch are also a very orderly people who require social as well as personal order. There is a low tolerance for deviant behaviour. Rules and regulations abound that give the Dutch a sense of stability and security. Foreign businesspeople should keep this in mind when making their business presentations, and for their general conduct.

Housing Newcomers are advised to use a realtor who is registered with the Dutch Association of Real Estate Brokers - Nederlandse Verenigingvan Makelaars in onroerende goederen (NVM). There is also a competitive group of agents called Koophius Makelaars, as well as individual agents working alone.

Most expatriates choose to rent their accommodation in The Netherlands. In some cases, permission from the municipal authorities must be obtained before signing a lease to rent a residence; you may have to demonstrate why you require housing in this particular area, such as proximity to work or schools. This permission is usually granted.

A lease is typically at least six months, but usually a year or longer, up to a maximum of five years. The rent is fixed for the first year and may be adjusted annually thereafter depending on cost of living increases.

Contracts usually include a two-month escape clause which applies to both

parties and should include the standard diplomatic clause allowing you to vacate the premises without penalty should you be transferred to another location.

Both apartments and houses, (often row houses), are available in the major cities and towns. Rooms tend to be smaller than those found in some other countries, although many have high ceilings. Houses typically do not have basements. Apartments may be in large old homes that have been converted or in newer constructions, frequently on the garden-apartment pattern. More modern buildings tend to be farther from the city centre.

In Amsterdam, most available housing is comprised of apartments with three or fewer bedrooms. They commonly have one and a half bathrooms.

Schools The Dutch education system is ranked very high by the Programme for International Student Assessment – ninth in the world. Public schools offer foreign national curricula (UK or US, for example) and international curriculum (IB), as well as the Dutch curriculum.

Children from English-speaking countries usually attend international stream schools because the Dutch school system is very different from these countries’ education model for children after age 12. It can be difficult for students to return to their old system when they return home.

Autumn International HR Adviser

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36

country PROFILE - THE NETHERLANDS There are two main tracks, one leads towards university, the other towards professional or technical school. Expatriates from European countries may find the Dutch school system more similar to their own.

There are many excellent international schools in Amsterdam and other Dutch cities that provide instruction in English through the secondary level. There are also schools that offer instruction in French, German, and Japanese.

International education options include the Amsterdam International Community School, British School of Amsterdam, American School of The Hague, Deutsche Internationale Schule Den Haag, American International School of Rotterdam, and Stichting the Japanese School of Rotterdam.

Doing business The Dutch business community is close, perhaps due to the country's small geographic size and dense population. Business leaders are acquainted across industries, and business relationships date back to school days and close family associations, especially where families have long been active in business.

Businesspeople familiar with North American or European business style will feel comfortable doing business in The Netherlands. The Dutch approach to negotiation is very similar to that in North America. The Dutch like to get down to business as quickly as possible and are apt to be direct to the point of bluntness.

Businesspeople are focused on financial details. They can be tough negotiators, but once a deal is made and sealed with a handshake, it is almost always kept.

The Dutch society is hierarchical, with a strict order and structure, which translates to corporations as well. In large firms, a team mentality prevails and decisions are made by consensus; however, in small firms, the head of the company will take responsibility for decisions even though he or she will ask for input from the relevant parties.

Below the elevated levels of the boardroom, this is an egalitarian society where it can be almost an embarrassment for one to have more status or material wealth than another. There is a self-effacing manner about the Dutch in this regard, while at the same time there is an intense consciousness of comparative achievement.

The Dutch, who are honest, frugal, and International HR Adviser Autumn

humble, find any sign of ostentation and deviousness, to be offensive. Foreign businesspeople should dress conservatively, be modest in their expenditures, and avoid anything that might be considered boasting.

IN MEETINGS Presentations should be neat, simple and straightforward, containing an abundance of factual data, charts, and graphs that support your assertions. The Dutch are concerned about the "bottom line," but are not obsessed with numbers. The long-term outlook is more important.

Literature and any pertinent information should be sent well in advance of the meeting. Presentations need not be translated into Dutch unless the materials will be used in the consumer market. All promotional materials and instruction manuals should be translated into Dutch.

Punctuality is absolutely critical as without it you will appear to a Dutchman to be unreliable and incompetent. Even a few minutes' tardiness will make you suspect. This applies to both business and social engagements.

NATIONALLY The Netherlands is the headquarters of a number of large multinational enterprises, such as the Royal Dutch Shell Group, Unilever in consumer products, and Philips in lighting and electronics, which dominate the export-driven economy.

With a wide-ranging social welfare system, it is tempting to assume that the Dutch may be uninterested in working.

Working conditions are generally very attractive, with significant employment benefits, generous vacations, and good job security. But on the contrary, the historical reputation of the Dutch is of a hard-working, productive people. The

workforce is highly productive and welleducated, with high levels of skill and training.

Looking ahead Recent data from the Netherlands Bureau for Economic Policy Analysis (CPB) and Statistics Netherlands (CBS) have people describing the economic outlook in terms like “cautiously optimistic” and “moderately positive”. Long-term expectations are for modest but steady growth, founded on the country’s highly educated population and superior position in the application of information technology.

With an enviable unemployment rate of 5.1%, and one of Europe’s lowest inflation rates (2%), the country is poised to follow the service sector focus outlined by the Ministry of Economic Affairs last year.

On the international front, foreign businesses and their employees hit a snag when, in early September 2011, the Ministry of Finance announced some changes to a tax rule that has been advantageous to highly skilled foreign workers. This tax concession, called the “30% ruling”, was established to create favourable conditions for international employees in The Netherlands. Although it is looking to restrict eligibility, the government states it plans to continue this programme in the future.

Whatever it takes for The Netherlands to regain its solid economic footing, the land of bicycles and windmills will surely be a destination for international businesses for a long time to come.

Ellen Harris, GMS International Product Director at Living Abroad, LLC www.livingabroad.com

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38

health

How To Keep Your Employees Healthy The incentive for international employers to assemble a healthy, happy workforce has been publicised for many years now. Reduced employee absence, increased productivity and better staff retention are all alluring benefits for business managers looking to make a difference. So it’s useful to know the options.

One of the biggest mistakes employers have made in the past with healthcare programmes, has been that they’ve introduced measures in isolation – supporting staff only when they are ill or needing urgent medical attention. Today a much more holistic approach is preferred and many employers are taking a broader responsibility for the health and wellbeing of their employees – in sickness and in health.

If like many international businesses, you’re looking to keep your employees healthy 24 hours a day 365 days a year, one thing’s for sure, there are plenty of things you can do.

Start as you mean to go on If you’re serious about generating a healthy working environment, it makes sense to put health on the agenda right from the outset. In many cases this means even before a new employee arrives, because as with most things in life, making a good first impression stands you in good stead for the future.

There’s a lot to think about for any expatriate moving to a new job, which is why they’ll always be grateful for any reassurances you can give them about their new environment. And if employees are to settle in quickly, work permits and accommodation aren’t the only things that they’ll want to know about – health and wellbeing information is vital for a smooth transition.

To a large extent, your location will determine the details of what you pass on.

Depending on where you are, you might want to offer information on relevant vaccinations; anti-malaria tablets; or for those employees who travel a lot, even suggest some useful contents for a first-aid kit. And always remember to explain how the local medical practices work, because procedures will usually be different from an individual’s home country. You’ll also find that simple things like the location International HR Adviser Autumn

of local doctors or chemists will be very well-received, alongside a list of telephone numbers that may come in handy.

Of course, healthcare isn’t just about when things go wrong. It’s also worth mentioning the location of any local sports facilities, health clubs or teams that are available to join. Aside from the exercise, it’s a great social outlet for anyone joining a new community – especially if any of these facilities are available through work.

Share information Whether your employees work together in an office or remotely from different sites, creating a healthy environment is as much about communication as it is about commitment. The more you share health and wellbeing material, the more it will become part of your company’s culture.

And let’s face it, with websites, intranet sites, emails, Twitter, Facebook and all the other channels available these days, it’s easy enough to pass on information.

The content of your communications is entirely up to you. It could be anything from local health issues to work-related medical awareness pieces. They don’t have to be groundbreaking, just interesting and wherever possible useful. Typical examples might include tips on giving up smoking; dietary advice; wellbeing suggestions for the seasoned traveller; or even an update on how the company football team got on in their recent match. The point is, when you start talking about health matters they become front-of-mind for those who are listening.

Make exercise a way of life Exercise is one of those things that can become infectious once people start, even though the thought of it doesn’t always appeal. So the challenge for you as an employer is to motivate your staff to get involved. Once you’ve got them started on the road to healthy living, you’ll find there’s a good chance they won’t want to stop.

To kick things off you might want to consider a team sporting challenge like a charity fun run, or walk. It doesn’t have to be anything too adventurous, just something that everyone can join in with and show a bit of camaraderie. As well as the obvious health benefits, it’s a great team-building exercise and PR opportunity. Then again, team sports don’t have to be one-off ideas.

Football five-a-side leagues are as popular as ever, as are tennis and squash ladders. By promoting these types of activities through the workplace, you’re making fitness easier for employees and offering your endorsement at the same time.

Some businesses are taking this a step further by adding free or discounted gym membership to their employee benefits packages. If you’re interested in this idea, many local gyms will be happy to come up with some kind of affinity relationship that makes this option much more affordable. And for those employees who travel a lot, it’s always worth trying to book them into overnight accommodation that has a gym onsite. By making the access easier there’s a better chance they’ll use it – which has to be a good thing when the only other alternative on overnight stays tends to be the bar!

Remove employee stress Every working environment can be stressful, which is why you may not be surprised to hear that after musculoskeletal disorders, stress is the next biggest illness reported in the workplace.

Expatriate workers have more reasons than most to be stressed. As well as general work issues, they face a host of new pressures by virtue of the fact that they are in an alien environment. The culture shock alone can affect people, then there’s the strain of being isolated from friends and family – or the pressure and responsibility of having to introduce their families to a whole new way of life. Offering country or city guides to new recruits can be a nice touch. While it might not resolve everything, it at least demonstrates that you’re prepared to support them through what can be a difficult time.

When an employee first starts work in their new country, it can sometimes take a few weeks before the initial excitement subsides. But when it does, it can be a shock to the system. It’s worth preparing them for this beforehand because the transition isn’t always easy. Also, don’t forget the employee’s family – it’s just as important to get them settled in quickly, because this extra responsibility is itself a common cause of stress for employees.

Indeed, supporting family life can be one of the best ways to avoid expatriate recruits from feeling the strain, regardless

health of how long they have been in the role.

Partners and children can be a worry for expats, so showing extra consideration in this area will win you many favours with employees. If travel is a big part of the job, there’s a lot to be said for giving spouses (and children) the option of accompanying their partner when they have to work away. Or if this is unrealistic, try and stick to timetables and offer as much warning as possible to help minimise any disruption. If possible, when an employee is due to be away from their families for a spell, it’s useful for them to be at home the day before they travel, so that they can organise their domestic affairs. It can be a great stress reliever.

Other factors that will continue to cause stress at work, include long hours, difficult working relationships and levels of responsibility. While it’s impossible to remove all these pressures, there are things you can do to help manage the situation – like encouraging a healthy work-life balance, being flexible around working practices and making the working environment as comfortable as possible.

You’ll find major causes of stress are often resolved with simple solutions.

Do the basics right Whatever your working environment, there are certain behaviours that are sensible the world over. They may appear common sense, but you’ll be amazed by the difference they make.

For instance, many employees in busy environments go for convenience ahead of nutrition when it comes to lunchtime snacks. Their commitment may be commendable, but a healthy diet is just as important to productivity. As well as encouraging staff to think about what they eat throughout the day, you might want to consider providing free fruit for the office – it’s always good to lead by example and a healthy alternative to cakes and biscuits. Similarly, try and suggest soft drinks as an alternative to stimulants like coffee – another notorious office vice.

It’s surprising just how many people eat at their desk at lunchtime rather than taking a well-earned break. Again, committed as this may be, it isn’t good for an employee’s health or productivity.

Everyone needs a break at some point, so encourage them to take it. The other thing about sitting down at a desk all day, is that it makes you more susceptible to back pain and repetitive strain syndrome – two of the most common complaints

that lead to discomfort and time off work. Breaks are useful, but another way of avoiding these conditions is to ensure that you regularly assess company workstations to ensure they are as comfortable as possible. Small alterations can have quite an impact.

Most of the time, your employees are themselves in the best position to tell you how their health at work might be improved – so remember to ask their opinion. When they raise issues or concerns, it’s then up to you to demonstrate your willingness to listen by putting things right.

the cure.

Obviously, whatever you decide needs to be right for your company, but one thing’s for certain – a healthy workforce will always be much better for business.

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Autumn International HR Adviser

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40

IMMIGRATION

Global Immigration Update Russia Immigration Authorities Clarify New HIV Test Requirement (August 1, 2011) Russian authorities have provided additional details on the new HIV test requirement for foreign nationals applying for Russian work permits. Foreign nationals subject to the requirement must undergo testing at an official state clinic after arrival in the country. Individuals in the highly qualified foreign specialist programme are not required to undergo HIV testing in order to obtain work authorisation, though they may need to have a medical exam in their home country in order to receive an entry visa from a Russian consular post.

Completing the HIV Test Requirement As of July 1, 2011, foreign nationals seeking a work permit through the standard work authorisation procedure must present negative HIV test results when they appear at a local labour office to collect a work permit. If the test is positive for HIV, the work permit will be denied, the visa will not be renewed, and the foreign national will be required to leave Russia.

Foreign nationals must undergo the HIV test after their arrival in Russia. Their registered address in Russia will determine which state facility must conduct the test.

The cost of the test and amount of time it will take to receive test results will vary among clinics. Only the HIV test must be completed at a state clinic. If additional medical examinations are required, which will depend on an individual’s nationality and location in Russia, the foreign national may complete them at his or her chosen commercial medical clinic. Note that some consular posts may require a foreign national to undergo a medical examination in the home country before the post will issue an entry visa.

To obtain the HIV test, the foreign national must schedule an appointment and receive an appointment card that is presented to the doctor during their visit.

The clinic will notify the individual when test results are available. Some clinics require that the foreign national personally appear to collect the results, while others will deliver them by mail or allow a International HR Adviser Autumn

representative to collect them.

United Kingdom New Migration Category for Foreign Nationals with Exceptional Talent Now Open (August 10, 2011) The UK Border Agency (UKBA) is now accepting applications for the new Tier 1 (Exceptional Talent) migration category for foreign nationals who are internationally recognised as world leaders or potential world-leading talents in the fields of science and the arts. The number of available visas in the category is subject to a numerical cap, with 1,000 places available between August 9, 2011 and April 5, 2012, 500 allocated between August 9 and November 30, 2011, and another 500 allocated between December 1, 2011 and April 5, 2012. The UK government will consider whether to release additional visa numbers in March 2012.

Foreign nationals do not require employer sponsorship to qualify for the Tier 1 (Exceptional Talent) category, but they must be nominated by one of the following competent bodies: • The Royal Society, a fellowship of the world's most eminent scientists, authorised to nominate up to 300 places; • The Arts Council England, the national development agency for the arts, authorised to nominate up to 300 places; • The Royal Academy of Engineering, the national academy for engineering, authorised to nominate up to 200 places; or • The British Academy, the national academy for the humanities and social sciences, authorised to nominate up to 200 places.

Foreign nationals submit their Tier 1 (Exceptional Talent) applications directly to the UKBA, which will forward them to the competent body chosen by the applicant. Each competent body will determine how to select those who will qualify for nomination.

Foreign nationals admitted under the Tier 1 (Exceptional Talent) category are granted an initial stay of three years and four months, which may be extended for an additional two years. They will be able to apply for permanent settlement after five years of residence.

Singapore Tougher Eligibility Standards Take Effect Next Year for Two Key Employment Pass Categories (August 19, 2011) Foreign nationals applying for new employment passes in the Q1 and P2 categories will face tougher eligibility requirements starting January 1, 2012, when Singapore’s Ministry of Manpower (MOM) will raise the minimum salary for each category and introduce a heightened education requirement for the Q1 pass in an effort to maintain the country’s current level of foreign workers in the face of increased demand.

The P and Q employment pass categories are available to foreign nationals who will enter Singapore to work as managers, professionals, administrators, or specialists provided that they meet minimum salary requirements, and possess professional credentials and post-secondary educational qualifications adequate for their position or relevant work experience.

Q1 pass holders will have to earn a monthly salary of at least S$3,000 (approximately US$2,492), an increase from the current minimum of S$2,800.

Individuals termed “older applicants” by the MOM must be offered a higher monthly salary that is commensurate with their work experience. The MOM has not defined “older applicants,” although the term is presumed to refer to Q1 applicants who possess several years of work experience and are not recent university graduates. A Q1 applicant seeking to qualify on the basis of foreign educational qualifications will have to be a graduate of an educational institution recognised by the MOM. Because the list of recognised foreign schools changes from time to time, Q1 pass applicants and their prospective employers are advised to check the most current version of the list before filing their applications once the new requirement takes effect.

P2 pass applicants will have to earn at least S$4,500 (approximately US$3,741) per month, an increase from the current minimum of S$4,000 currently. There are no new education requirements for P2 applicants.

The MOM will retain the discretion to

IMMIGRATION approve applications from foreign nationals who do not meet the new standards but who have extremely strong employment histories, such as those with exceptional skill sets, high educational achievements, and a history of receiving significant salaries or a demonstrated strong career path.

There will be no change to the minimum salaries for the P1 and Personalised Employment Pass categories, both of which require a minimum monthly salary of at least S$8,000, or the S pass category, which requires a minimum monthly salary of at least S$2,000.

Transitional Measures for Current Q1 and P2 Pass Holders Current Q1 and P2 pass holders will be subject to the new minimum salary requirements based on the expiration date of their current pass, as follows: • If the pass expires before January 1, 2012, the foreign national will be granted a one-time renewal of up to two years if he or she earns at least S$2,500 monthly for a Q1 pass or S$3,500 monthly for a P2 pass • If the pass expires between January 1, 2012 and June 30, 2012, the foreign national will be granted a one-time renewal of up to one year he or she earns at least S$2,800 for a Q1 pass or S$4,000 for a P2 pass • If the pass expires on or after July 1, 2012, the foreign national is subject to the full new minimum salary requirement of S$3,000 for a Q1 pass and S$4,500 for a P2 pass when applying for a renewal.

SPAIN New Salary Minimum for Highly Skilled Transferees Using Fast-Track Processing Programme (August 23, 2011) Highly skilled intracompany transferees are now required to meet a minimum salary requirement in order to qualify for expedited immigration processing through Spain’s Large Business Unit (Unidad de Grandes Empresas). The transferee’s salary must be at least 1.5 times the minimum salary set by the Spanish National Statistics Institute (INE) for the employer’s National Classification of Business Activities (CNAE) activity code.

The minimum salary increases for each dependent accompanying the applicant.

The Large Business Unit provides an exemption from labour market tests,

expedited work permit of approximately one month, and visa processing in approximately ten days. In addition, a dependent residence permit application can be submitted simultaneously with that of the principal applicant, and dependent spouses can apply for a work permit without a labour market test. A royal decree that took effect on June 30, 2011 expanded access to the Large Business Unit.

India New Registration Requirements for Foreign Workers and Students in the Bangalore Region (Updated August 25, 2011) The Bangalore Foreigners’ Regional Registration Office (FRRO) now requires all foreign nationals who will work or study within its jurisdiction to register, regardless of the length of their intended stay in India. Previously, those working or studying in the Bangalore region for less than 180 days were not required to register.

Dependent family members accompanying an employment visa holder remain exempt from the registration requirement if they will remain in India for less than 180 days.

Employment visa holders and their spouses are also subject to new documentary requirements when registering or applying for a visa extension with the Bangalore FRRO. When registering, foreign workers must now submit a declaration from their sponsoring employer stating that no suitable Indian worker was available for the position they will fill. They must also submit a copy of their Indian tax ID card, known as a PAN Card, or a receipt acknowledging they have applied for one. Employment visa holders applying to the Bangalore FRRO to extend their visas but who did not meet the recently-imposed minimum salary requirement when they first entered India must also submit a letter from the relevant Provident Fund (PF) office stating that they meet the requirement now. The Bangalore FRRO also clarified that the salary breakdown required for registration and visa extension applications must be submitted on the sponsoring employer’s original letterhead, and must bear the appropriate company seal and authorised signatures.

Spouses of employment visa holders registering at the Bangalore FRRO must now submit a personal declaration stat-

ing they will not undertake any business or work-related activities while in India.

In addition, to document their relationship to the principal, they must submit a marriage certificate that is either legalised or accompanied by an apostille, depending on whether the issuing country is a party to internationals agreements on the recognition of official documents. If a spouse is already in India and does not have the necessary documentation, he or she may submit a declaration stating that it will be submitted as soon as it can be obtained.

BRAZIL Foreign Registration Procedures Significantly Delayed in São Paulo (August 23, 2011) Foreign nationals are experiencing significant delays scheduling registration interviews at the Federal Police in São Paulo, due to increased numbers of foreign nationals entering Brazil and a lack of sufficient resources to meet the demand. It can now take up to 120 days for affected individuals to complete the registration process and obtain the foreign national identification number known as the RNE. Foreign nationals staying in Brazil for more than 90 days must register with the police within 30 days of entry and obtain an RNE. The RNE is not required to actually begin work with the sponsoring employer, but a foreign national must have one in order to be added to the employer’s local payroll, open a bank account, obtain a driver's license and complete other post-entry formalities.

Until registration has been completed, a foreign national typically cannot travel abroad, but in light of the delays, the Federal Police is now authorising overseas travel during the registration process if a foreign national has made an online registration appointment, returns to Brazil before the appointment date, and carries proof of the appointment to show on re-entry.

Fragomen is currently meeting with local authorities to find a way to alleviate the registration delays in São Paulo and their effects on employers. We strongly recommend that employers operating in Brazil continue to take the lengthy delays into account when planning assignments in São Paulo.

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IMMIGRATION Hungary New Reporting and Compliance Requirements for Employers of Non-EU Nationals (August 25, 2011) Employers in Hungary have new reporting and compliance responsibilities for all non-European Union (EU) foreign nationals who start employment after August 1, 2011. Failure to comply with the new obligations can result in fines for the employer.

Employers must now notify the Immigration Authority when a non-EU worker starts work, within five days of his or her first day of employment. The Immigration Authority must also be notified if the employer terminates a non-EU national’s employment before the expiration of his or her work permit or if a non-EU national who has obtained a work permit does not take up his or her proposed position, though the timing of these notifications has not yet been specified by Hungarian authorities. The Immigration Authority is expected to release additional details about the reporting obligation soon.

In addition, employers must inspect non-EU employees’ work and residence authorisation documents no later than their first day of work. Employers must retain copies of these documents for the full duration of a non-EU national’s employment. An employer that does not comply with this obligation may be subject to fines that are calculated based on the number of non-EU national employees whose documents were not inspected or retained.

Argentina Registration System for Sponsoring Employers Simplified (August 31, 2011) Employers in Argentina are no longer required to submit company balance sheets when registering with the Registro Nacional Unico de Requirentes Extranjeros (RENURE), under a regulation that took effect on August 17, 2011.

To sponsor foreign nationals for work visas, an entity in Argentina must register with RENURE and have a unique corporate identification number. The sponsoring employer’s original Certificate of Registration, or a notarised copy, is a required supporting document for all work visa applications. Employers must also update International HR Adviser Autumn

their RENURE file annually.

Impact on Employers Employers with operations in Argentina should see a significant benefit from this development. Completing the RENURE registration process is one of the more complicated and time intensive parts of Argentina’s immigration process, and having to present balance sheets was one of its more onerous requirements. Not having to submit balance sheets should simply the process for employers.

Mexico Foreign Workers in Mexico City Must Have Local ID to Travel Abroad; Electronic Travel Clearance System Opens to Select Nationalities (September 6, 2011) Foreign nationals working in Mexico City are now required to obtain a local identification card (photocredential) before they travel abroad, under new internal guidance from Mexico’s Immigration Department. Though foreign workers in Mexico can typically obtain a temporary entry and exit permit that allows them to travel abroad while an ID card application is pending, the temporary permit is no longer available to those in Mexico City. Affected foreign nationals who travel abroad before obtaining the ID card may have their immigration status terminated and be unable to re-enter the country.

The new ID requirement means that foreign workers in Mexico City may be delayed in their ability to conduct overseas business travel or other trips abroad, since local ID card applications take approximately 15 to 20 business days to process.

Electronic Travel Clearance System Opens to Select Nationalities Mexico’s Electronic Approval System (SAE), an advance online travel clearance programme, is now open to nationals of Brazil, Russia and Ukraine entering Mexico by air for business, tourism or transit. Peruvian nationals may use the SAE to transit through Mexico to China or Japan, provided they hold an entry visa for their final destination. Foreign nationals who obtain an online travel clearance through SAE are not required to obtain a consular visa.

Eligible foreign nationals who wish to use the electronic clearance system must complete an online application before departure. Though the system should

provide an immediate response, travellers are advised to submit their applications at least several days before a planned trip in case there are any processing delays. If granted, the SAE authorisation is valid for a single trip within 30 days. The traveller must use an SAE participating airline.

If the online application is denied, the foreign national must obtain a consular visa for travel to Mexico. Note that SAE authorisation does not guarantee admission to Mexico; it is simply an authorisation to board an airline.

Russia Employers Face Increased Scrutiny of Work Permit Quota Applications, Delays in Employment Permit Processing (September 9, 2011) Employers in Russia are experiencing new difficulties in sponsoring foreign nationals for work permits, as their applications for work permit quota allotments are facing stricter scrutiny and the processing of employment pass applications is delayed.

Work Permit Quota Applications Face Increased Scrutiny Employers applying for their allotment of work permit quota numbers for 2012 are reporting increased scrutiny from Russian authorities. Quota applications have been unexpectedly denied at higher rates, though Russian authorities have not announced new adjudication standards or policy changes.

Each year, employers wishing to hire foreign workers must apply for a share of the national quota of work permits, which are allocated by region and occupation. If a quota application is denied, an employer may be severely limited in its ability to hire foreign workers. Employers whose quota applications are denied or are approved for less than the desired number of workers should consider alternatives, including use of Russia’s new programme for highly qualified foreign specialists (which is not subject to the work permit quota) and quota-exempt occupations.

Employment Permit Application Processing Is Delayed Due to technical problems at the Russian Labour Department, employers are currently experiencing processing delays of up to 30 days for employment permits, the general authorisation to employ foreign workers. Employers must hold

IMMIGRATION a valid employment permit to apply for work permit quota numbers or to sponsor the renewal of existing work permits.

Employers should take these delays into account when planning upcoming renewals. If delays persist, employers may be unable to obtain employment permits in time to renew a foreign national’s work permit.

Brazil Investment Requirement Increases for Permanent Residence Visas for Foreign Officers and Company Directors (September 9, 2011) The Brazilian government has increased the minimum investment a foreign entity in Brazil must make to sponsor their directors or officers for permanent residence under the Resolution 62 category, pursuant to new rules issued in August by the Brazilian National Immigration Counsel. The new minimum investment is 600,000 Brazilian reais (approximately US$ 360,000) per foreign sponsoree, up from the prior minimum, which was set at 200,000 US dollars.

A lower investment threshold of BRL 150,000 per sponsoree applies to employers who undertake to create at least ten new jobs for Brazilian citizens within two years after the entry of the sponsored foreign national. The previous minimum was US$ 50,000. The investment must be made by direct currency transfer. Under previous rules, employers could meet the job-creation investment through cash investment, technology transfer or other capital asset transfer. Note that applying pursuant to the lower investment threshold rules is generally not advisable. These applications take significantly longer to process compared to those filed under the general investment minimums, and the requirements are subject to sudden or discretionary changes that can jeopardise the immigration status of foreign nationals already in Brazil.

Brazilian authorities will verify an entity’s investment online through the Electronic Declaratory Registry of Foreign Investment of the Brazilian Central Bank.

United Kingdom Migration Advisory Committee Proposes Cuts to Shortage Occupation List (September 14, 2011)

Fewer occupations would qualify for immigration cap priority and labour market test exemptions under Tier 2 of the UK’s Points Based System if the Home Office approves proposed cuts to the Shortage Occupation List, as recently recommended by the Migration Advisory Committee (MAC), the UK’s independent advisor on migration issues. The MAC would also add some occupations to the list, but its proposal would result in a net reduction in shortage occupations as a percentage of the UK’s overall workforce.

The recommendations are largely confined to a handful of industries, including electrical energy production, natural resources, nuclear power, aerospace engineering and computer gaming.

The Shortage Occupation List is a roster of jobs for which there is an endemic shortage of suitably skilled resident workers. If a job appears on the list, an employer can fill it with a non-European Union national without having to complete a resident labour market test. Applications to fill shortage occupations also get priority access to the monthly cap on restricted certificates of sponsorships.

The MAC’s recommendations are now being considered by the Home Office.

While not binding, the MAC report will likely carry significant influence in any upcoming changes to the Shortage Occupation List. In the past, the Home Office has acted on MAC recommendations in one to three months.

In developing its proposal, the MAC consulted with employers and industry groups, among others. Fragomen’s London office worked with clients to advise the MAC on the report. Fragomen is closely reviewing the MAC’s recommended Shortage Occupation List and will contact any clients that may be affected.

Thailand New Filing and Document Requirements for Business Visitor Work Permits (September 21, 2011) Business visitors to Thailand now face stricter application procedures for Urgent Work Permits, the authorization required to conduct most short-term business activities in the country. Business visitors who do not comply with the new rules could have their permits delayed or denied.

Applicants must file for the permit in person or through a representative and

must provide an invitation letter from a Thai sponsor. Faxed applications are no longer accepted. Same-day service should continue to be available under the new rules.

Unlike most countries, Thailand requires visitors to get a work permit for nearly all business activities. Business visitors entering for 15 days or less usually seek an Urgent Work Permit after arrival.

Urgent Work Permit applications are filed at the Employment Office with jurisdiction over the sponsor’s place of business. If the sponsor is based in Bangkok, the application is filed with the Bangkok office of the Thai Employment Department along with the applicant’s passport.

The application must be accompanied by an invitation letter addressed to the business visitor. The letter must clearly state the purpose of the visit, the duration of stay, and why the visit is urgent and essential for the sponsor. If the reason for the visit is a business meeting, a copy of the agenda must be included.

The Thai government imposed the new filing and document rules after a recent case in which a sponsoring company falsely claimed that a business visitor’s activities were urgent.

Canada Intracompany Transferees Can Now Recapture Time Spent Abroad (September 21, 2011) Intracompany transferees who travel internationally while working in Canada can extend their work permits by the number of days they are abroad. Time spent outside Canada will no longer count towards their maximum period of stay, according to a new Citizenship and Immigration Canada policy.

The time limit for intracompany transfers is five years for specialised knowledge workers and seven years for senior managers and executives. Transferees cannot exceed the maximum, but they can now extend a work permit or get a new permit recapturing the days they were not physically present in Canada.

After reaching the five- or seven-year limit (including recaptured time), transferees must spend at least one year abroad before they can apply for another Canadian work permit.

What This Means for Employers The new recapture policy means that frequent travellers will no longer be deprived Autumn International HR Adviser

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IMMIGRATION of their full period of physical stay and employers will have more flexibility to move staff in and out of Canada. In the past, intracompany transfer work permits had a fixed duration, even if an assignee had not physically worked in Canada for the full validity period.

Malaysia Government Unveils New Work Permit Process for Certain ICT Companies, New Identification Card for Expatriates (September 23, 2011) A new work permit is in effect for information and communication technology (ICT) companies that are not part of Malaysia’s initiative for technology development, the Multimedia Super Corridor (MSC). The change comes as the Multimedia Development Corporation (MDeC) – the authority that oversees the MSC – takes over the adjudication of all Employment Pass applications for the industry, including those from non-MSC companies. Previously, the Malaysian Immigration Department (MID) processed non-MSC applications.

Non-MSC companies must complete a one-time registration before they can file applications with MDeC. To register, the company must submit the prescribed form to MDeC. MDeC then provides the company with a Facilitation Package, which includes a Service Agreement that must be signed by a director of the company. The Facilitation Package must be returned to MDeC to complete the registration process.

Once registered, non-MSC companies can complete Stage One of the work permit process, the application for MDeC’s approval of the position. This stage takes approximately five to nine working days.

After Stage One approval is obtained, the application goes to MID for Stage Two of the application, the work permit approval.

This takes three to five working days.

MDeC is expected to take over Stage Two processing for non-MSC applications in the near future.

Employment Pass procedures for MSC companies are unchanged. MDeC will continue to process both Stage One and Stage Two of these applications. The processing times are three to seven working days for Stage One and ten to fourteen working days for Stage Two. The application process for Professional Visit Passes, which authorise foreign International HR Adviser Autumn

nationals to perform short-term technical activities, is also unchanged. These applications will continue to be processed by MID regardless of whether the sponsor has MSC status.

Fragomen is monitoring the new MDeC process, and will issue updates once available.

New Identification Card for Expatriates On September 19, 2011, Malaysia introduced i-Pass, a new foreign national identification card that replaces the now-discontinued i-Card. The i-Pass may be used as a travel document within peninsular Malaysia in lieu of a passport. However, i-Pass holders traveling to East Malaysia (Sabah and Sarawak) must carry a passport to clear immigration.

The i-Pass is being introduced in stages.

Currently, only the MID headquarters office in Putrajaya can issue i-Passes. It is issuing them only to foreign nationals designated as expatriates, at the time they receive a new or renewed Employment Pass or a Visit Pass (Temporary Employment) (VPTE) approved for more than six months. An expatriate is a foreign national who holds a high-level managerial post in a foreign-owned private company or firm, an intermediate-level managerial or professional post, a technical post, or a job requiring specific technical or practical skills and experience.

In the next few months, the MID is expected to start issuing i-Passes nationwide to all Employment Pass and qualifying VPTE holders, as well as their dependents. Holders of Professional Visit Passes or VPTEs valid for six months or less and their dependents will not receive i-Passes.

France France Introduces EU Blue Card (September 27, 2011) France has introduced its version of European Union Blue Card, a programme that will allow highly skilled third-country nationals to live and work temporarily in the country and ultimately acquire longterm EU residence rights. The Blue Card will become available after the French government finalises minimum salary requirements for the programme, which is expected to occur within the next two months.

To qualify for the Blue Card, a foreign national must have a three-year degree or five years of work experience, and an

employment contract of at least one year.

The job must pay at least 1.5 times the minimum salary set by the government.

No labour market test is required.

Foreign nationals who have held another EU country’s Blue Card for at least 18 months will automatically qualify for the French Blue Card. They do not require a visa to enter France and must apply for the French Blue Card within one month of arrival.

French Blue Card applications will be submitted to the local prefecture with jurisdiction over the foreign national’s place of residence. Prefectures must adjudicate principal Blue Card applications within 90 days of receipt and applications from accompanying dependents within six months.

The French Blue Card will be valid for three years or the duration of the employment contract, whichever is less. Dependent family members will be granted combined work and residence permits that are initially valid for one year and can be renewed annually for the duration of the principal’s Blue Card.

Holders of French Blue Cards and their dependents will qualify for EU long-term residence permits after living in the EU for five years, of which the last two must be in France.

The content herein is provided for information purposes only. If you have any questions, please contact Fragomen Global Immigration.

Fragomen has 35 offices in 15 countries. For further information, please contact: Global Knowledge Team Fragomen Global, LLP +1 (212) 688 8555 (direct) globalknowledge@fragomen.com www.fragomen.com

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diary dates OCTOBER 2011 Worldwide ERC Global Workforce Symposium 12th-14th October 2011 Colorado Convention Centre Hyatt Regency, Denver and Grand Hyatt, USA The leaders in global workforce mobility will be networking, strategizing and sharing ideas for thriving in the global marketplace. Experience new heights in workforce mobility by attending this unique programme!

Please see further information and registration details on www.worldwideerc.org

Expat Academy: Challenges of Emerging Markets for all industry sectors 20th October 2011, 1.30pm - 6.00pm This seminar will focus on the challenges faced when sending people to emerging markets and new locations. We will highlight common legal and regulatory restraints & explore how different organisations source vendors, apply policies and make the process as smooth as possible for employees.

To find out more or book a place visit: www.expat-academy.com or contact admin@expat-academy.com

Expat Academy: The impact of the Olympics on the London Housing market 31st October 2011, 8.30am - 10.30am This seminar will offer insight into how other organisations are preparing for the impact of the Olympics on temporary housing in London.

To find out more or book a place visit: www.expat-academy.com or contact admin@expat-academy.com

NOVEMBER 2011 CIPD Annual Conference & Exhibition 8-10th November 2011, Manchester, UK Thousands of HR and business professionals will attend Europe’s most influential people management and development event this year. The conference provides a great opportunity to get insights from inspirational speakers, whilst the exhibition gives visitors access to leading industry suppliers and a chance to explore the latest solutions.

To pre-register visit www.cipd.co.uk

Expat Academy: Buying and reviewing private medical insurance for expatriates 10th November 2011, 8.30am - 10.30am This seminar will look at why organisations have a Global Medical Insurance scheme. We will provide detailed information on the differences between global and local schemes and will explore the scope of both benefits and coverage and who pays for whom.

To find out more or book a place visit: www.expat-academy.com or contact admin@expat-academy.com

Expat Academy: Global Mobility Global Heads networking meeting 10th November 2011, 1.30pm - 6.00pm An opportunity to meet and discuss at a strategic level your global mobility challenges. Attendance to this meeting is by invitation only.

For more information, please contact emma@expat-academy.com

JANUARY 2012 Deloitte Employment Tax Academy 16th January 2012 09.30 to 16.00, London, UK Deloitte is offering an employment tax training programme, aimed at those working in payroll, employment tax and reward.

Our first training session will take place in January, at the Deloitte International HR Adviser Autumn

offices in central London and is the first in a series of classroom based modules which will provide the participant with up-to-date knowledge from Deloitte professionals, on the practical aspects of day to day employee tax matters.

The cost is £750 +VAT per module, which includes the full day’s training and take away materials, to allow the participant to build a portfolio over the course of the training programme.

This Intermediate level training will form part of a wider programme of training solutions being launched by Deloitte, via its Employment Tax Academy.

For further information on this event please contact Ashleigh Gatward at agatward@deloitte.co.uk or on +44 20 7303 8115.

FEBRUARY 2012 The Corporate Relocation Conference & Exhibition 6th February 2012, Hotel Russell, 1-8 Russell Square, London, UK This is the 15th annual conference and the seminars cover useful and informative topics relevant to International HR professionals.

Information on seminar schedule to follow in due course. For further updates please visit the ‘Conferences’ section on www. internationalhradviser.co.uk.

Please contact Helen Elliott on +44(0)20 8661 0186 or email Helen@internationalhradviser.com for further information.

APRIL 2012 EuRA Conference and AGM 2012 25th April to 27th April 2012, Clarion Hotel Sign, Stockholm Our 15th International Relocation Congress will take place in Stockholm, one of the most beautiful cities in the world and the selfbranded capital of Scandinavia. Our programme “Discover, Consider, Deliver” will look at how best we can service the needs of our clients; GRMC’s, corporate HR and the transferee. With increased pressure on fees and ever greater demands for service excellence, we will also examine how to continue to diversify and grow in challenging times.

Full details and online bookings are on the EuRA website at www.eura-relocation.com

MAY 2012 National Relocation Conference May 9-11, 2012, Convention Center Grand Hyatt, San Antonio Marriot Riverwalk, United States of America The National Relocation Conference will help you shape your future as we explore best practices in the industry, create new foundations, and build on success in the face of today’s business challenges. At the National Relocation Conference, all who manage workforce mobility, build business, and network within the relocation industry gain powerful contacts, up-to-the minute ideas and information, and practical solutions from this influential gathering.

Email webmaster@worldwideerc.org to be notified when registration opens or visit www.worldwideerc.org for further information.

OCTOBER 2012 Global Workforce Symposium October 3-5, 2012 Marriot Wardman Park, Washington, DC, USA The leaders in global workforce mobility will be networking, strategizing and sharing ideas for thriving in the global marketplace.

Experience new heights in workforce mobility by attending this unique programme!

Email webmaster@worldwideerc.org to be notified when registration opens or visit www.worldwideerc.org for further information.

DIRECTORY Assignment Management Services

International Personnel Management Limited (IPM) 43 Tyndall Court, Commerce Road Lynch Wood, Peterborough PE2 6LR Contact: Alan Bentley or Scott Niven Telephone: +44 (0)1733 364040 Fax: +44 (0)1733 364050 E-mail: info@ipmltd.co.uk Website: www.ipmltd.co.uk IPM specialises in providing international assignment management services and helps businesses move their employees around the world. Our services include policy development, costings, tax planning, hypothetical tax calculations, assignment contracts. We co-ordinate Visas, Work permits, Home and School search and Removal. We provide bespoke solutions to a wide range of blue chip clients based in the UK and Europe.

IPM currently supports assignees in 50 home and 60 host countries. Our friendly team of international assignment professionals take great pride in their flexibility, response times and extensive knowledge. We aim to consistently exceed your expectations and deliver a seamless service, which overcomes the challenges of international movement.

BUSINESS ASSOCIATION J-1 VISA PROGRAMME

BRITISHAMERICAN BUSINESS (BAB) 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 USA Contact: Colleen Maloney Telephone: +212 661 4060 Fax: +212 661 4074 Email: cmaloney@babinc.org Website: www.babinc.org BRITISH AMERICAN Business of New York and London (BAB) is the leading transatlantic business organisation dedicated to helping its member companies connect and build their business on both sides of the Atlantic. With over 8,500 executives participating in 120 events annually, BAB offers its members access to practical, measurable business expansion opportunities. BAB’s J-1 visa programme assists our members in bringing qualified employees of any nationality and from anywhere in the world into the United States, regardless of age.

EXPATRIATE RESOURCES

FOCUS INFORMATION SERVICES 13 Prince of Wales Terrace, London W8 5PG Contact: Barbara Rees Telephone: 020 7937 7799 Fax: 020 7937 9482 E-mail: brees@focus-info.org Website: www.focus-info.org Since 1983 FOCUS Information Services has been supporting expatriates and their families who live and work in the UK. A nonprofit membership organisation, FOCUS provides invaluable information, networking opportunities, career support, programmes and seminars, helpline, members-only website, resource centre and over 7000 books and resources to make the life of an expat complete.

HEALTH INSURANCE

Bupa International Telephone: + 44 (0) 1273 718304 Website: www.bupa-intl.com • Bupa – A name trusted by 10 million people in 190 countries • The international healthcare provider with over 35 years’ experience • Multi-lingual helpline open 24 hours • Direct currency settlement • Optional assistance cover including evacuation and repatriation.

Depending on the member’s requirements, Bupa International offers plans for both individuals and companies. Most of our plans include; primary care, maternity cover, home nursing, emergency dentistry, hospital treatment and accommodation, health checks, cover for chronic conditions, emergency road ambulance, cover for sports injuries.

HR CERTIFICATION/ CREDENTIALS

HR Certification Institute 1800 Duke Street Alexandria, Virginia, 22314 USA Telephone: +1-703-548-3440 Fax: +1-703-535-6474 E-mail: info@hrci.org Website: www.hrci.org HR Certification Institute is an internationally recognised certifying body for the HR profession. We have awarded over 100,000 credentials in over 70 countries to HR professionals who have passed rigorous exams to demonstrate their mastery and real-world application of forward- thinking HR practices, policies and principles. Our certifications are a career long commitment that requires continual HR career development to maintain certification. Four certifications are offered: the Professional in Human Resources (PHR®), Senior Professional in Human Resources (SPHR®), Global Professional in Human Resources (GPHR®), and the California state specific PHR-CA® and SPHR-CA®.

HR SERVICES

ASSOCIATION OF RELOCATION PROFESSIONALS (ARP) PO Box 189, Diss IP22 1PE United Kingdom Contact: Tad Zurlinden Telephone: 08700 737475 Fax: 01379 641940 Email: enquiries@arp-relocation.com Website: www.arp-relocation.com The ARP is the professional association for the relocation industry in the UK. The ARP’s activities include seminars throughout the year, an annual conference, the publication of an annual Directory of Members and a website, which is updated regularly.

THE EUROPEAN RELOCATION ASSOCATION (EURA) PO Box 189, Diss, Norfolk IP22 1PE Telephone +44(0)8700 726 727 Fax: +44(0)1379 641 940 E-mail: enquiries@eura-relocation.com

Website: www.eura-relocation.com EuRA is an industry body for Relocation Professionals in both Europe and Worldwide.

EuRa have launched The EuRA Quality Seal, the world’s first accreditation programme for relocation providers. This pioneering initiative provides a straight forward, cost effective audit to reflect your company’s excellence in providing relocation services.

IMMIGRATION

FRAGOMEN 4th Floor, Holborn Gate, 326-330 High Holborn, London WC1V 7PP Contact: Alex Paterson, Partner William Foster, Partner David Crawford, Partner Telephone: +44 (0)20 3077 5000 Email: londoninfo@fragomen.com Website: www.fragomen.com As the world's leading provider of immigration legal services and advice, Fragomen has served the immigration needs of clients ranging from individuals to the world’s leading multinational corporations for 60 years. With 36 offices in 15 countries worldwide, Fragomen has the resources and the reach to provide strategic and effective immigration solutions for over 140 countries around the globe.

INSURANCE AND FINANCIAL SERVICES ZURICH INTERNATIONAL LIFE Abbey Gardens, 4-6 Abbey Street Reading, Berkshire RG1 3BA Contact: Adele Cox Telephone: +44 (0) 118 952 4253 Fax: + 44 (0) 118 952 4300 E-mail: adele.cox@zurich.com Website: www.zurichinternational.com Zurich International Life is a global provider of life insurance, investment and protection products. Our corporate range offers flexible, portable solutions, designed to suit multinational organisations with an internationally mobile workforce. The International pension plan offers a cost effective, bundled retirement benefits solution comprising of trust services, investment funds and online administration.

International group protection is designed to protect an employers’ most important asset – their employees – and offers a range of life and disability protection.

With a local presence in key global business hubs and over 20 years experience of implementing and administering plans world wide, we’ve developed our knowledge and understanding of key markets to meet the needs of our customers and business partners.

INTERNATIONAL HR CONSULTANTS DELOITTE LLP Stonecutter Court 1 Stonecutter Street London EC4A 4TR Contact: Robert Hodkinson, Partner Telephone: +44 (0) 20 7007 1832 Autumn International HR Adviser

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DIRECTORY Fax: +44 (0) 20 7007 1060 E-mail: rhodkinson@deloitte.co.uk Website: www.deloitte.co.uk Whether you are creating your first international mobility programme for employees or addressing fundamental changes to an existing programme, our International Human Resources team can help. Deloitte provides consulting support that has an appreciation for each company’s size, background and unique cultural environment, aligning your international programme goals with corporate business strategies. Our consultants have developed deep expertise in many fields based on first hand experience with many of the world’s leading organisations: international assignment policy and process design, benchmarking, service delivery modelling, improving vendor management and helping our clients become more compliant and their administration more cost-effective.

INTERNATIONAL MOVING DT MOVING LTD 49 Wates Way, Mitcham Greater London CR4 4HR Contact: Tim Daniells Telephone: +44 (0) 20 7622 4393 Fax: +44 (0) 20 7720 3897 Email: london@dtmoving.com Website: www.dtmoving.com DT Moving is a world leading international moving company. Founded in 1870 as Davies Turner, we provide an awardwinning* move management service for corporations who relocate their employees to locations all over the world. Whether your employee is moving to or from Europe, America, Asia-Pacific, Africa, or simply just around the corner, we manage the entire process. Our goal is your complete satisfaction from initial contact right through to delivery. With a customer satisfaction rating of 96% for 2010, we offer unrivalled quality at competitive rates.

RECRUITMENT RED GROUP OF COMPANIES The Bower, Langford Hall, Witham Road, Maldon, Essex CM9 4ST Contact: Caroline Frostick-Seear and Amie Cutts Telephone: 01621 840600 Fax: 01621 856062 Email: amie.cutts@redrecruit.com Website: www.redrecruit.com Red Recruit was founded in 2002 and specialises in the Relocation and mobility industry. We are a very professional, friendly and reputable company who have extensive knowledge within the industry.

We have access to a large volume of potential candidates all seeking work in your industry all over the UK, we will be able to find you a suitable candidate to enhance your business.

We personally understand the importance of finding the right calibre of staff for an organisation. By using our service we will take the pressure off you of finding a suitable candidate for your company, saving you International HR Adviser Autumn

time, money and effort, giving you the best attention at all times.

RELOCATION INTERDEAN INTERNATIONAL RELOCATION LIMITED Central Way, Park Royal London NW10 7XW Contact: Barbara Roberts Telephone: +44 (0) 208 961 4141 Fax: +44 (0) 208 965 4484 E-mail: London@interdean.com Website: www.interdean.com Interdean provides relocation services to suit the needs of companies who relocate their employees to locations throughout Europe or around the world.

Interdean’s relocation services are designed specifically to support the person who is relocating, their family and the company's relocation programme and last year assisted 32,000 families, expatriates and international assignees to relocate overseas.

Interdean’s relocation services includes our totally dependable, FIDI FAIM ISO verified, international moving service.

Interdean International Relocation was established in 1959, with 47 relocation service centres and employs 900 international relocation services staff across Europe and EMEA and over 600 alliances worldwide.

Wherever you are, Interdean International Relocation is with you every step of the way...

SCHOOLS ISL Group of Schools Two UK schools: Old Woking Road, Woking, Surrey GU22 8HY 139 Gunnersbury Avenue, London W3 8LG Tel: +44 (0)1483 750409 +44 (0) 20 8992 5823 Email: hmulkey@islsurrey.com Website: www.islschools.org Contact: Heather Mulkey The ISL Schools offer an international education with an important addition: mother tongue or modern language training from an early age. Academic research increasingly points to the importance for English as an Additional Language learners of gaining a solid language and literacy foundation in their own language. For English speakers, research supports the value of language learning in overall academic success. Looking towards our students' global future, multiple language facility will become increasingly valuable. ISL London is one of the first schools to offer the IB Diploma and next year celebrates its 40th Anniversary.

TAXATION

BDO LLP 55 Baker Street, London W1U 7EU Contact: Andrew Bailey Telephone: 020 7893 2946 Fax: 020 7893 2418 E-mail: andrew.bailey@bdo.co.uk Website: www.bdo.co.uk BDO LLP is the award-winning, UK Member Firm of BDO International, the world's fifth largest accountancy network

with more than 600 offices in 100 countries.

We have a partner-led approach, which delivers the highest quality of service by using short, functional chains of communication to aid decision-making. Clients benefit from our fresh thinking, constructive challenge and practical understanding of the issues they face. Developing strong, personal relationships with our clients is at the forefront of our service approach.

Tax advice is just one of our award-winning services and our expatriate team give practical and direct advice, delivering solutions which suit your needs.

DELOITTE LLP Stonecutter Court, 1 Stonecutter Street London EC4A 4TR Contact: Robert Hodkinson, Partner Telephone: +44 (0) 20 7007 1832 Fax: +44 (0) 20 7007 1060 E-mail: rhodkinson@deloitte.co.uk Website: www.deloitte.co.uk Deloitte’s Global Employer Services is comprised of approximately 2,600 people in over 80 countries. We take a holistic approach to international assignment tax compliance and planning, ensuring that proposed strategies deliver full value to our clients and their international assignees.

As well as assisting with employer core compliance, such as tax returns and year end procedures, we provide an end-to-end solution that covers a range of services from tax compliance services, payroll support and policy development, international assignment programme administration (“co-sourcing”) capabilities and global visa and immigration services. We also have a dedicated global team of GES technology professional.

US TAX & FINANCIAL SERVICES LTD Magdalen House, 136 Tooley Street London SE1 2TU Contact: Peter Lawrence, Managing Director Tel: +44 (0) 207 357 8220 Fax: +44 (0) 207 357 8225 E-mail: peter@ustaxfs.com Website: www.ustaxfs.com We are an established niche tax consultancy comprising a specialist team of attorneys and tax professionals, with significant experience in managing expatriate populations of all sizes.

Entries in this Directory cost £175 per issue or £600 per annum.

For further details email helen@ internationalhradviser.com or telephone +44 (0) 20 8661 0186

For people who are going places, Zurich ensures their benefits are always on board.

Full benefits provision for important people – wherever they are going Just like your key employees, our retirement and protection products work seamlessly across borders. And with over 20 years’ experience of providing employee benefits packages to multi-national companies, we have the expertise to help you retain and attract the best people.

For more information visit www.zurichinternational.com call Stewart Allanson on +44 (0) 7815 637137 or email stewart.allanson@zurich.com

Zurich International Life Limited provides life assurance, investment and protection products and is authorised by the Isle of Man Government Insurance and Pensions Authority.

Registered in the Isle of Man number 20126C. Registered office: 43-51 Athol Street, Douglas, Isle of Man IM99 1EF, British Isles. Telephone: +44 1624 662266, Telefax: +44 1624 662038.