International HR Adviser Spring 2024

International HR Adviser

FEATURES INCLUDE:

The Importance Of Counting And Tracking Days When Employees Travel In The Modern Working World

Analytics In Motion: How Having A Solid Grip On Data Can Transform Global Mobility

The Changing Landscape Of Right To Work Compliance

Defining Your 'Employee Deal' And Using It To Create Competitive Advantage

Global Tax Update

What Can HR Do To Drive Effective Talent Acquisition?

The State Of Play For Women's Safety Risks Across The Globe

ADVISORY PANEL FOR THIS ISSUE:

Jeanette Ryan & Lucy Harrison,

Anni

Gary

2024 Global HR Conference

Tuesday 30th April 2024

at The Royal Automobile Club, Pall Mall, London. 12pm - 4.30pm

Our annual event for Senior Global HR Professionals only will cover the following topics:

Sustainability Within Mobility – The Road Ahead

As global businesses become increasingly focused on sustainability measures in light of both government legislation and customer expectations, many departments are being asked to do their part – and mobility is no exception! In this session, we’ll explore the growing pressure for mobility to build and deliver upon science-based targets. How we can begin to review policy and process to promote greater sustainability and how engaging our entire value chain can support mobility in better contributing to overall corporate sustainability goals.

Presented by Andy Conduit-Turner, Director Sales & Technology Enablement at Cartus

The Importance Of Employee Day-Count Tracking When Travelling In The Modern Working Environment

With TST, explore the steps being taken by some of the world's largest companies to ensure their employees remain compliant while undertaking business trips and commuter-travel. TST will pay particular attention to the importance of day-counting, and the methods used by companies to accurately gather this data to effectively mitigate risk exposure.

Presented by TST International

Navigating Tomorrow: Trends Driving Change In Global Mobility

Stay ahead in this rapidly-evolving global business and talent landscape as we take a look at some of the pivotal trends shaping the future of global mobility (GM). Offering actionable insights, we’ll highlight key developments to help you navigate challenges, seize opportunities, and confidently drive your GM programme’s success and transformation.

Presented by ECA International

Current Global Mobility Trends And Tax Update

Presented by BDO LLP

The Power Of Human Connection In A Digital Age: Dr. Shoba Subramanian Explores The Future Of Healthcare

With her extensive experience in travel medicine and tropical medicine, Dr Subramanian will share insights on the future of healthcare delivery for globally mobile populations. Discover how technology is transforming care delivery and learn about the measures that can be put in place to help safeguard the health and wellbeing of employees on international assignments. Don't miss this opportunity to gain valuable knowledge from a renowned expert in the field. Register now for an enlightening and informative session.

Presented by Dr Shoba Subramanian, UnitedGlobal Healthcare

A New Era For Global Talent Deployment: Actionable Approaches To Managing Global Talent

In today's rapidly changing world of work, new approaches to identifying, sourcing and managing global talent are required. Leading organisations are responding to persistent disruption and opportunity by redefining policies and embedding technology to ensure compliance. This session will help you understand how to put actionable strategies in place and learn what’s necessary to ensure Right to Work compliance for the entire global workforce (not just those on a traditional mobility journey).

Presented by Deloitte, Global Employer Services

To register for this free event, please email helen@internationalhradviser.com with the name and job titles of those who would like to attend.

We look forward to seeing you there!

SPONSORED BY:

The Importance Of Counting And Tracking Days When Employees Travel In The Modern Working World

In a Global Mobility (‘GM’) compliance environment, where a day really can matter, we explore the steps being taken by some of the world's largest companies, to ensure their employees remain compliant when undertaking international business trips and commuter-travel.

GM professionals around the world, whether that be in-house GM teams looking after international assignments, or tax professionals helping keep their client’s workforce compliant, are well tuned on the importance of day tracking. In an everchanging work environment, with business travel anticipated to exceed pre-Covid levels during 2024(1), it can become even harder to keep on top of the administrative burden of accurate record keeping.

We will explore the importance of employee ‘day counting’ and ongoing tracking throughout this article, touching on how Tracker Software Technologies (‘TST’) technology can help minimise the administrative burden and, in turn, effectively mitigate risk exposure for employees and their employers.

So, why is day counting so important and who really needs to worry?

Firstly, it is important to emphasise that, unlike many other compliance requirements that can differ widely depending on the size of a company, or the level of income an individual receives, the importance of day counting doesn’t discriminate. Employee day counting is just as important on an individual level as it is for international corporations.

Whether that be implications on an individual’s personal life due to the potential creation of Tax Return filing (and possible payment) obligations in multiple countries,, to preventing them holidaying or visiting family in certain countries if they have not fulfilled an immigration requirement when travelling on business.

Employee day counting is just as important on an individual level as it is for international corporations

Employee day tracking, or lack thereof, can also have significant implications at an employer level. Employers could potentially become exposed to expensive income tax and social security liabilities, and/or shadow payroll obligations in unexpected territories around the Globe. Not to mention the exposure to permanent establishment and/or economic employer issues.

As employer compliance obligations have increased over recent years, highlighted by the introduction of Posted Worker Notification requirements across the EU/EEA for example, so has the sophistication of the technology that authorities have at their disposal. Many regulatory authorities now have access to reliable real-time data to monitor frequent business travel and international remote working patterns by ecting collecting advance passenger information, or via the Schengen Information System, one of the EU’s largest databases. Employers need to ensure that they too collate information about their travelling employee population in sufficient time, to help minimise the indirect costs that can quickly escalate when considering tax, social security and/or immigration exposure.

The importance of employee day count tracking is very clearly an issue that both employees and employers cannot afford to ignore.

Traditionally, established GM teams were able to have a much tighter handle of their internationally mobile workforce as they would generally fall into one of two categories; business travellers (usually isolated to a small group of employees or directors) or formal GM policy moves (assignees, extended business travellers, permanent transfers or localisations). GM teams have formal policies, processes, and paperwork to follow, all of which would have likely been designed in a way to help mitigate risk exposure. However, due to the new need for international remote working policies and the projected growth of business travel opportunities postCovid, employers are forced to be more flexible to help the competition for, and retention of talent in the global market. This adds significant pressure on employers to ensure that they are also keeping abreast of the impact of this ‘third’ category of internationally mobile employees.

Remote working has the potential to drastically change the scope of traditional in-house GM teams; from bringing the demand for new internationally remote working policies into fruition to the widening scope of compliance issues due to the flexibility this new way of working is demanding.

Administrative authorities across the globe are also starting to adjust domestic rules and regulations to benefit from modern working patterns. For example, the creation of the EU Framework Agreement for cross-border teleworkers has recently been introduced and several EU/EEA countries have now signed up to the Framework Agreement. Put simply, the Framework Agreement will allow employers and employees to maintain their ‘home’ country social security position, where they have worked from home in another country for less than 50% of their work time. This will help employers and employees across those countries who have ‘opted in’ manage their workforce’s social security obligations, allowing them more breathing space.

In addition to the considerations of remote working, as the world continues to become more connected, so do administrative branches of state governments. Data and information sharing between countries continues to grow with technological advancements. This is highlighted by the growth in tax residency audits around the world as information is more readily available to tax authorities. For example, tax residency audits in relation to US domestic travel, and the importance of being able to prove the amount of time spent in different States, should be on the minds of those frequently travelling across the US. Across Europe, immigration changes are also being implemented, such as the new European Union ‘ETIAS’ introduction and the UK introducing electronic travel authorisation procedures. As the automation of border controls grow, and existing data is refined for interdepartmental sharing, so does the importance of employee tracking to ensure any potential immigration (or other related compliance issues) are flagged, prior to travel.

It is also important to note that the burden of proof is generally on the individual, however, where the individual is an employee being sent on international business travel and/or overseas assignments by their employer, the employer also has a duty of care to ensure that their workforce remain compliant and ultimately not out of pocket.

Employers also have no control over where an employee travels during their days of annual leave. Personal travel days should, however, be included in day counting computations. These additional days can have significant implications, especially when looking at the immigration impact. For example, if an employee overstays in country (due to business trips and personal travel day counts combined), employer fines and repercussions on future sponsorship applications can be impacted. An overstay in the Schengen Area can also have significant travel restriction impact for the employee, sometimes lasting many years.

A further important thing to remember is, tax authorities (by way of example), take in to account the activity being performed on any ‘day’ in country. Whether that be consideration of if the day constitutes a ‘workday’ under domestic tax definitions, or whether any exceptional circumstances could be a mitigating factor when considering tax residence and potential downstream tax costs.

Recent high-profile case law further highlights the information that tax authorities can look at when counting an employee’s days and determining the consequences. For example, the UK Statutory Residence Test was considered in

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detail during a case which concerned the UK residence status of an individual who had spent 50 days in the UK, which under their specific personal circumstances, would have made them liable to UK tax. The individual looked to argue that 6 of these days could be considered ‘exceptional circumstances’ and therefore not included in their day count for tax purposes. Case law such as this highlights the importance of planning return trips with a safety buffer, where day thresholds are close to being breached. This can also allow for any unexpected visits that the individual may need to take. GM teams should ensure they take this into consideration if an employee frequently travels on business to the same locations.

The European Court of Justice of the European Union (‘CJEU’) has also recently released commentary with regards to A1 certificates. In a recent judgement, the CJEU reiterated the ongoing requirement for EU Member States, and their citizens, to ensure that their A1 applications are accurate based on the most up to date personal circumstances of the individual, their employment and travel status. The Court also reiterated that this is an ongoing requirement. Member States and individuals must ensure that they notify the relevant parties as soon as possible if facts and circumstances change (including days in country and travel patterns) during the validity period of an issued A1 certificate.

As we have established, it is more important than ever to ensure that employers implement stringent policies and procedures around employee travel. In the past, this may have been done via calendar downloads, spreadsheets, office security pass records and/or reviewing passport pages. However, these manual processes are no longer fit for purpose.

Not only has the working environment advanced, with flexible and remote working becoming the norm, the introduction of ‘unlimited annual leave’ and focus on employee wellbeing and building an attractive company culture, so have authorities, with the advancement of automation and data sharing.

To help support employers with this, TST offers custom and proprietary technology that allows for automated day count tracking, including direct API solutions from third party vendors. These technology solutions ensure real time data collation, reporting and alerting based on individual employee circumstances and in accordance with corporate policy and risk thresholding. TST is also able to automate layers of approval process with internal stakeholders and take away the administrative burden across many different teams. With a proven record of saving clients hundreds of hours on time consuming travel approval processes, inflexible

systems that are unable to meet stakeholder demands, and reduce ‘cycle times’ on trip requests by more than half, when a day really can matter, why waste it?

For more information about Tracker Software Technologies’ technology platform please contact Tom Crosby, Head of Sales at TST: Tom.Crosby@tst-international.com.

References:

(1) Global Business Travel Forecast 2024| CWT (mycwt.com)

JEANETTE RYAN

Jeanette has led TST's research department since joining in 2017 and has worked in a Big 4 firm for 9 years, advising companies in relation to their mobile employee’s compliance requirements. Jeanette worked for three of the top global immigration law firms in London managing global accounts. She has a total of 25 years technical experience and knowledge spanning across multiple jurisdictions. Jeanette is a qualified Chartered Tax Adviser.

Tax & Social Security Research Manager, helping TST clients keep their Business Travel and International Remote Working employees compliant, safe, and engaged with company policies. Lucy has 8 years of experience in Global Mobility Tax within a Big 4 firm, prior to joining TST. Lucy has worked on a variety of clients over this time, from SME’s, multinational manufacturing, and retail industry clients, to leading global professional services firms.

LUCY HARRISON

Analytics In Motion: How Having A Solid Grip On Data Can Transform Global Mobility

In an era characterised by unprecedented connectivity, the dynamics of global mobility are rapidly evolving. Every move across borders generates an avalanche of data. This information holds the potential to unlock invaluable insights that are reshaping the way we understand, manage and optimise global mobility. Imagine harnessing the power of data analytics to predict move patterns, enhance the employee experience, and ensure seamless immigration processes. In this article, we delve into the transformative impact of data analytics on global mobility, exploring how it is empowering GM teams.

A Wide Variety Of Data

Each global mobility team sits on top of a ton of data, and the more mobile employees your team looks after, the more data there is at your fingertips: where they are, where they come from, where they are next going, when they started and finished their assignments, etc. The teams handle salaries in both countries, pension setups, bonuses – and of course, the assignment-specific benefits and allowances. You have access to the gender (im)balance, the family compositions, children’s dates of birth, and what kind of pets they have. Nationalities, citizenships, passport numbers, visa expiry dates, how much their rent is and when it’s up for renewal… the list goes on and on. However, unless you gather analytics, the relevance at a macro level could be lost: more data does not automatically equal better data, if you don’t know how to use it to your advantage.

GM data is both qualitative and quantitative and goes beyond what any regular HR team normally has access to –and for good reason. While your employer doesn’t usually need to know how many kids you have and how old they are, if you

are sending someone on assignment, it’s crucial to have this information to make sure that they are appropriately taken into consideration when the package is drawn up.

Improved Cost Control

Knowing where your workforce is shouldn’t be this difficult in this day and age; in fact, it should be considered essential

Nonetheless, not all teams are able to convert this privileged access to information to their benefit. A lot of larger programs use technology, but that alone doesn’t mean they are utilising analytics. After all, the world’s most popular assignment management system (AMS), still remains Microsoft Excel, despite all the appetite for and interest in AI. If your data is scattered around dozens of tabs in hundreds of spreadsheets, or if you’re not taking advantage of the full analytics capabilities of the reporting suite of your AMS, it’s no wonder that it isn’t being harnessed to its maximum potential. When Covid hit and companies realised they had employees stranded in multiple countries without a clear overview of who was where and whether they needed assistance, this lack of oversight became evident. Knowing where your workforce is shouldn’t be this difficult in this day and age; in fact, it should be considered essential.

Everyone involved in global mobility knows mobile employees are more expensive than regular ones – the average assignment is 3-5 times more expensive than keeping that same employee in their home role in the home location. However, the overall cost can still come as a rather bleak surprise to the business, especially if cost estimates are not part of the assignment sign-off process.

Typically, a cost estimate will cover four components that make up the total cost of the package: salary, annual benefits, one-off relocation costs, and tax and social security liabilities. The salary component makes up a large portion of the total costs, and includes any additional allowances and pay adjustments, such as mobility premiums or bonus payments. The annual costs include the ongoing benefits provision (such as housing, school fees and a company car), whereas the one-time costs occur at the start or end of an assignment (things like a preposting medical, flights and shipping). Lastly, the tax and social security contributions are calculated on the total value, and they have the potential to make up a significant proportion of the overall move costs.

If you run cost estimates, and especially if you do so through an assignment management system, it is far easier to stay on top of what your globally mobile workforce is costing the organisation. It is also easy to start analysing the variety of cost areas that make up the total. For example, you can focus on costs for a particular region (How much do my UK outbounds cost? What about UK inbounds? Or Europe as a whole?), policy type (What is the difference between those on home-based packages in comparison to local ones?), or even drill down to the level of individual package components (How much are we paying for housing globally, regionally, per location?).

Methodically utilising cost estimates for your entire population also unlocks the potential for making a comparison between your actual costs and the forecasted ones. This is something that is commonly on the radar for global mobility teams; however, many struggle with the collation of the actual costs data, and thus give up on the exercise. The easiest way to compare your

invoiced amounts and the forecasted ones is to rely on a service provider that manages all payment data (or even the actual payments on your behalf!) integrated into your assignment management system. Alternatively, you could run the comparison before approving any invoice.

Being able to run this level of cost reporting and analysis is a significant enabler to becoming more strategic. Business is driven by numbers, and if you can deliver valuable insight in order to unlock better business decisions, your role as an advisor to the business is going to be priceless. Who wouldn’t want to be part of the planning process, rather than the admin team that implements what others have decided behind closed doors?

Easier Compliance Adherence

In the ever-evolving compliance landscape where authorities around the world are looking for ways to increase their revenue, two critical pillars stand out: tax and immigration. When individuals cross borders, the complexities of tax regulations and immigration requirements can pose formidable challenges. However, utilising data analytics within your global mobility program offers a great solution, harmonising your processes and making it harder to find yourself noncompliant.

Everyone moving to another state or country triggers tax implications. Each jurisdiction wants to maximise their taxable income, and in recent years we have seen more and more countries enforce earlier liability cutoffs for people crossing borders. How can data analytics help? Tracking people and days spent in the country becomes a much easier task if you are using technology. You can set it up to pre-emptively flag likely problem cases or be notified when tax is about to be triggered and take appropriate action at that point, rather than after a limit has been breached. Additionally, tracking international remote work requests is another way to improve compliance and collate data trends. For example, you could analyse whether the number of requests has remained at the same level as in the immediate aftermath of the pandemic, or how long they are on average, and use the findings to drive your policy.

Moving talent around the world is closely intertwined with immigration, and meeting the regulatory requirements is crucial to ensuring your employees can continue to live and work in the host location. Data-driven systems facilitate meticulous record-keeping, ensuring that documentation requirements are met for each relocation. Saving everything systematically means that when you’re asked to produce any documents, it’s quick and easy to access the paperwork. Data analytics can also help streamline the visa

and work permit renewal process, because all the information – including expiry dates – is stored centrally. This means automatic notifications can be sent out when it’s time for a renewal process to kick off, saving you from manual tracking.

This means automatic notifications can be sent out when it’s time for a renewal process to kick off, saving you from manual tracking

Actionable Insight To Drive Decision-Making

Data analytics plays a pivotal role in measuring, understanding and optimising key performance indicators – and I don’t just mean individual employee performance, but how well your program overall is performing over time. How satisfied are your employees, and are they progressing to more senior roles after coming back? Perhaps you had a location that was a bit of a hotspot for failed assignments, but by analysing the driving factors behind the reasons people wanted to go back home or left their jobs, you spotted the issue and adjusted your policy, and since the change, failures there are not trending any higher than in other locations.

When used well, GM teams can harness data to identify trends, support decisionmaking and drive efficiencies. You can transform raw data into actionable insights; for example, if a manufacturing company is planning to open a new factory in a new country, assessing your talent pool based on previous success rates could help you decide who would make up the best team to set it up and running, or how much you could save by hiring a team locally or choosing a commuting arrangement rather than sending someone there for two years accompanied by their family.

We all know that going through a major policy change is a stressful, time-consuming process, but we also know how frustrating it is to keep making the same exceptions repeatedly. Data analytics enables you to identify what is working and what needs tweaking. This process of continuous improvement ensures your program keeps up with a world that’s constantly evolving, not only in terms of remaining compliant but also meeting the expectations of your employees. Keeping your program fit for purpose means you stay ahead of the curve and gain competitive advantage.

Unlock Your Full Potential

In conclusion, data analytics is a catalyst for transformation for all of us in global mobility. By leveraging data-driven insights, global mobility teams can enhance efficiencies, improve compliance and raise their strategic decision-making profile. Embracing data analytics ensures that global mobility programs remain adaptable and effective in a rapidly changing world.

By working smarter with the trove of data they hold, global mobility teams can anticipate challenges, adapt to new trends and gain a competitive edge. Staying ahead of the curve not only ensures compliance, but also meets the evolving expectations of a mobile workforce. The power of data analytics is not only in its ability to interpret the past, but in its capacity to shape a dynamic and successful future.

ANNI KERANEN Software Sales Specialist at ECA International

Anni is a technology enthusiast with ten years’ experience in Global Mobility. She is responsible for ECA's software sales strategy and can be reached at anni.keranen@eca-international.com.

The Changing Landscape Of Right To Work Compliance

The way in which we work, the locations from which we source talent, and the workforce-related policies that we deploy have changed significantly in recent years. This has been fuelled in part by the impact of ongoing geopolitical events and the aftermath of the pandemic. Certainly, there has never been a more complex environment for organisations to operate in - balancing the need to remain compliant, whilst ensuring that talent is both accessible, and benefiting from forward-thinking mobility policies.

Ensuring that every employee has the legal basis to work in a particular country (Right to Work) for businesses operating across multiple jurisdictions (and therefore multiple distinct legal frameworks) can be a daunting task.

Has your organisation considered the crucial role that Right to Work compliance plays in a range of Global Mobility-related activities? It is a critical compliance factor to consider in a variety of situations.

What Is Right To Work?

This is an interesting question because it depends upon where an individual wishes to exercise work activities. Further complexity arises as the context of those activities may vary, e.g., local employment, formal assignments or remote working arrangements.

The Core Principal

Essentially, having the Right to Work means an individual has a legal status to exercise work activities in a particular country. This is proved by providing, to an employer, evidence of this status. A Spanish national, for example, wishing to start work in another EU country, may present evidence of their Spanish nationality to enable them to exercise their Right to Work in another EU country.

A Complex Web Of Regulations

The challenge facing businesses and HR advisors is that regulations are distinct, depending on the country of employment. Actually, relatively few governments have

specifically legislated for how a Right to Work check must be completed. Examples where they have, include the UK and the US where processes and required documents are precisely documented and dictated by law.

However, whether or not there are formal laws in place to govern this compliance process, the potential ramification of employing an individual illegally is almost universally negative. Consequences vary from corporate fines, to bans on hiring foreign migrants, and in extreme circumstances, imprisonment. There is also the risk of negative publicity.

Audits are the most popular way for governments to check the compliance of companies operating in their jurisdiction and are reviews to identify any illegal working or abuse of processes

Businesses must have a way to (i) understand what the requirements are in each country at all times, (ii) become aware of changes in a timely manner, (iii) have a mechanism to conduct checks and (iv) record and access the data needed to evidence their compliance.

How Is It Policed?

The government audit is very much a feared event in many countries, but it doesn’t have to be. Audits are the most popular way for

governments to check the compliance of companies operating in their jurisdiction and are reviews to identify any illegal working or abuse of processes. We can expect that the scope of audits may also expand in the future to include those captured under international remote working policies employed by organisations.

We have seen a considerable uptick in such audits in several countries in recent times, with auditing becoming more regular in the Netherlands and Ireland, and audits in the UK in 2023 70% up on the previous year.(1)

Organisations can prepare for such audits in the short term by having access to employee files and the documentation and data held on such files that evidence the Right to Work, e.g., passport or work permit documents. In addition, understanding the questions that will be asked by auditors is important. This may be seemingly diverse enquiries such as requests for evidence of the lease or ownership of the office that an employee works in, or company organisation charts. Having these readily available will help considerably in preparation for any surprise visit by auditors.

Longer-term preparation means ensuring processes and knowledge are fit for purpose. This is something we will look at later in this article.

Considering Right To Work In A Variety Situations

It is fair to say that the Right to Work is a key consideration or mandatory compliance step in a huge variety of circumstances.

Often a Right to Work requirement is not immediately obvious and may not have been considered in a company policy. For this reason, it can also be challenging for businesses to find the appropriate place to hold responsibility for Right to Work compliance within the organisation. It can sit with onboarding, with mobility, immigration or general HR compliance. Given the significant risk involved it is not always a responsibility that business functions are willing to take on.

Regardless of who does ultimately hold this important responsibility, their input has never been more necessary in guiding practices and policies to ensure compliance.

International Talent Acquisition

The trend to look for talent outside the borders of the contracting country (in order to access the skills and expertise required), creates challenges in maintaining compliance.

Traditionally, company X looking for a locally contracted employee would expect to look for that employee in the same ‘home’ country. That employee would be expected to conduct their work almost exclusively (bar the occasional business trip) in that same jurisdiction. But the talent marketplace is now very different.

The best candidate may be in another country and there may be a need to allow that candidate to stay there to perform their duties. On the surface that seems straight forward, however, a business must ensure that the candidate has the Right to Work in that country. This candidate’s home country may be one where you have limited expertise or knowledge of compliance processes, therefore introducing risk.

Imagine a scenario where a UK-based employer has employed an individual on a UK contract but permits them to work overseas. The employee in question is a national of that overseas location, e.g., France. Because they are part of a UK team, they make regular trips to the UK to attend team meetings and training. At this point they are working on a UK contract, in the UK and without a work permit. They are not just on a short business trip, they are working illegally.

International Remote Work

As the difficulties of the pandemic and immediate challenges that it presented to an organisation’s policies and compliance processes calmed, with it came the need and desire to offer remote work opportunities more widely to employees. The definition of remote work does change somewhat across organisations. For one employer, it may mean working from another part of the country or working from home a number of days a week. For another, it may mean permitting an employee to work abroad. We will focus on international remote work.

I am actually writing this article whilst working remotely in Spain (with the appropriate Right to Work documentation that my UK employer has checked I must add!). As part of our company policy I am permitted to work abroad for a certain number of days a year. This is a fantastic and very welcome opportunity to spend more time in an alternative jurisdiction. It also provides the further benefit of enabling me to be close to family that live here.

Notwithstanding other important compliance considerations relating to remote working, Right to Work must be front and centre of an organisation’s focus and therefore another policy area that the person(s) charged with Right to Work compliance must be involved in. Such policies may require employees to self-certify that they have the Right to Work elsewhere, or the employer may actively request and review a candidate’s documentation.

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Approaches vary from organisation to organisation but strong processes around tracking employee whereabouts and approval processes are important.

The latter approach means expertise will be needed to review documents for what could be any country in the world, and therefore presents a significant undertaking to get it right.

The latter approach means expertise will be needed to review documents for what could be any country in the world, and therefore presents a significant undertaking to get it right

Mergers, Acquisitions And Global Expansion

One of the most challenging events from an HR compliance perspective has to be a merger or acquisition, or expanding operations into new jurisdictions. As part of a merger or acquisition, a group of individuals will become employees of a new organisation. When setting up in a new location, again many employees may be new to the business. These groups will have gone through previous onboarding processes that have not been controlled by the acquiring business or the receiving entity.

With the pressures and deadlines associated with such transactions it is easy for Right to Work compliance to be forgotten and it is vital that it is not. A transaction may involve multiple jurisdictions, each of which will have its own requirements for a company to satisfy.

Practitioners responsible for Right to Work should ensure that processes required to evidence Right to Work compliance are

considered as part of the overall project and that the appropriate knowledge is gathered to ensure compliance from day one.

Building A Reliable Framework For Compliance

Fundamentally building processes and policies to give an organisation the best chance to be globally compliant rests on just a few core principles. There are some important questions for HR practitioners to consider in assessing whether they have robust programmes and approaches in place.

Understanding The Challenge

Which jurisdictions are you operating in? What are the requirements there? What are the organisational restrictions or push back you may face?

Are there additional data privacy considerations in those locations over and above the principles of GDPR that must be taken into account? For example, in Germany an employer is not permitted to capture and hold the documentation and data of EU nationals.

Establishing Appropriate Processes To Safeguard The Business

There is no one way to do this and it will very much depend upon the nature of the organisation and team structures within it. Some see responsibility for safeguarding processes as sitting with a centralised team responsible for global compliance. For others, a more locally led process will be appropriate. Regardless of the approach, access to current legislation and requirements is critical, as is ensuring that the capture and thorough checking of documents is carried out.

Employers are encouraged to consider whether appropriate processes are established in all locations and how monitoring of current requirements is handled and how changes are applied.

Technology As An Enabler

Several governments are moving towards a form of digital immigration status becoming the default, rather than issuing physical documents. As an example, in the UK, biometric residence permits will cease to be issued this year. With this trend, the door has been opened to embrace alternative means of checking a candidate’s Right to Work. The majority of checks being carried out on those with immigration permission in the UK must now be completed using the Home Office’s online Right to Work system. In addition, for British and Irish nationals, employers are now permitted to assess valid passports using Identity Service Providers (IDSPs) to validate authenticity and the identity of the employee. In Singapore, work pass cards are issued with QR codes which employers scan using the

SGWorkPass app. And in Australia the Right to Work of migrants must also be checked online using Australia’s VEVO system.

Do consider how third party technology can be used as part of your Right to Work compliance process and whether this can be linked to HRIS or onboarding systems. Are you accessing the appropriate government systems to capture candidate status and, where relevant, are you requesting candidate consent to do so?

GARY BAKER

Director, Immigration, Global Employer Services, Deloitte LLP

+44 20 7007 9461

gabaker@deloitte.co.uk

The Benefits Of A Reliable Process

Recording employee data where permitted to do so also means that other risk considerations, such as nationality quotas in locations such as Singapore and Saudi Arabia, are anticipated and can be tracked and most importantly that you are ready for any potential government visit.

A reliable and focussed Right to Work

Global Talent & Mobility Advisory

process is critical for any modern, agile organisation. It brings huge opportunity for your business to grow compliantly, for employees to feel supported, and for forward-thinking policies to be deployed without introducing additional risk.

Reference:

(1) Identity Service Provider Home Office Working Group, 5th February 2024

At Deloitte we support clients with a variety of compliance considerations across onboarding, remote work and talent acquisition as well as mergers and acquisitions. Our dedicated team can help you navigate global Right to Work compliance as part of your programme including the use of supporting technology and streamlining of operational processes.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organization”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication. DTTL and each of its member firms, and their related entities, are legally separate and independent entities.

©2024. For information, contact Deloitte Global.

Defining Your “Employee Deal” And Using It To Create Competitive Advantage

What Is An Employee Value Proposition?

An Employee Value Proposition (or “EVP”) comprises everything an employee gets in return for providing their labour to his or her employer. Every pay cheque, every “thank you” and even every social media interaction that an employee sees – all of these contribute to an organisation’s EVP in some way.

In effect, it comprises the totality of the deal an employer has struck with its people as to why they should join, stay and go the extra mile in their endeavours at work.

We call an EVP the “Employee Deal” – it is a shorter and somehow more resonant phrase than its jargonistic equivalent. The key aspects of an Employee Deal for any employer are set out in the pretty diagram that accompanies this article (see Fig.1 The Employee Deal in action).

Why Does It Matter?

Defining your Employee Deal, and making it as compelling as possible, is a business imperative. If you don’t get this right, you will need to run very hard indeed to recruit the best people. And even harder to keep them.

In today’s highly charged talent market, an ineffective Employee Deal poses a direct hit to your bottom line.

The Problem With Your Employee Deal

Business critical though it may be, we see two problems organisations encounter in defining their own Employee Deal:

• A deal, by its very nature, is a two-way thing. You can define what you wish –but the lived experience of your people becomes their deal. Irrespective of what you may have written down

• Different people value things differently. The deal is weighted to reflect the personality type it is applied to. The employer has no control over this weighting. Organisations are not static and your Employee Deal needs to be capable of flexing to cater for people with different skills and needs.

So, why work so hard on defining your Employee Deal, when it is open to such extremes of interpretation?

A poorly articulated Employee Deal creates confusion for your leaders, your employees and in your potential talent market. You can

only unlock this confusion, usually, by paying people more (cash reward is the one part of the Employee Deal that everyone sees and can value). If, therefore, you find yourself having to pay at the top of the market or deploy retention or joining bonuses with frequency, then there is likely to be an issue with your broader Employee Deal.

So, there is every reason to take extreme care to define your Employee Deal and work to improve it.

But we offer 4 traps to avoid:

• It is a change tool for the employer – not a communication conduit to your employees

The value in defining an employee deal is that you can see, on a page, all the things that are important in making your firm the place to be – a level of clarity that enables you to carefully manage a change journey to make things better. What it is less useful for, is a tool to communicate to your people why they should be delighted to work for you. Bluntly, they’ll be the judge of that. And nothing you put on a slide will influence this.

• Reward is a hygiene factor – you cannot hope your great culture or underpinning values compensate for sub-market pay.

Fig.1 The Employee Deal in action

You must pay the going rate for the job. There is no trade-off between sub-market pay and other balancing (more positive) attributes. That’s the problem with one aspect of your Employee Deal being a hygiene factor – you can work hard at everything else - but get this piece wrong and it will all be for nothing.

• Career progression is disproportionately important

Providing a career with progression, skills development and experiences is key. This means that there is now a need to be clear on what a compelling career looks like for a technical specialist, versus a relationship lead. Or salesperson versus a financial controller. Even more important is recognising that career progression may involve leaving (and possibly coming back). Or moving horizontally.

Of all the aspects in an Employee Deal, getting this piece right (once the reward hygiene factor has been addressed) has the potential to make the most difference. We should always be sceptical about exit interview data (it highlights why people said they left rather than why they actually left) – but it usually tells us that people leave for a mixture of better pay, better career prospects and better experience. All of which are addressed by a better articulated career pathway for all.

• Acknowledge the noise, but don’t flipflop around in response to it. In 2020 (quite understandably), the Employee Deal debate focused on wellbeing. In 2021, the loudest conversation out there was about hybrid working. Today, the noise is focused on base pay in a world of rising cost. This is not cyclical – it is event driven. But an appropriately crafted employee deal offers the answers to such events – you should not need to keep re-defining your deal to respond to them.

This offers an important aspect of an Employee Deal “activation” – it is principles based. If your Employee Deal has a “cycle to work scheme” on it, then you need to move the helicopter up a little. No one has ever joined or stayed at a business because of a cycle to work scheme. It’s not part of your Employee Deal. It’s a piece of small print.

The key is this. You have an Employee Deal, whether you like it or not. Understand it, and then manage it purposively, using data to inform and evidence progress. This offers you competitive advantage. Hideous though the expression “Employee Deal activation” may be, it is difficult to establish what path you are on to make your firm the best place it can possibly be without taking this step.

The Employee Deal And The Internationally Mobile Employee

Sending people to work in other countries has been common practice since the concept

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of paid employment first appeared. How you send people is much more of a fluid affair –where rules, tax, policy and law meet culture. Our tendency to focus on the technical bits, does not mean that the cultural questions are not important. Quite the reverse – they are the most important bit.

So, what has the Employee Deal got to do with mobility? There are four cultural touchpoints to consider. Employers who get all four right, will have a better outcome than those that just focus on compliance. Think about the following:

So, what has the Employee Deal got to do with mobility? There are four cultural touchpoints to consider

1. Why?

The reason why you send someone to work in another country goes to the root of your culture. And being very clear as to why you are enabling employee mobility shows your culture in action. We can see from what happened to employee mobility in the pandemic, that an employer can manage most things without having to parachute employees into different countries to oversee activity. Which means that sending employees overseas now has a more nuanced purpose – possibly more connected with experience and capability development rather than straightforward business need.

We know this to be the case. Because, without a change in employer mindset as to the reasons to send people on assignment, we would have expected the number of longterm assignments since the pandemic to have fallen through the floor. The reason for this is simply that, for employers who are operating a hybrid working model, they would be sending their employee to a different country to spend 2 or 3 days a week working from their new serviced apartment. Which is plainly silly.

So different models have emerged. We are seeing an uptick in short-term business travel. And different types of arrangement looking at periods “on” and “off” assignment. The key will be that there is now less business

purpose in shifting geography for the long-term – without the added benefit of employee experience. Flexibility will be key.

There will be situations where an assignee could argue that a long-term “in locality” assignment is the best way. The argument may even be persuasive. But it will be a preference, rather than a requirement. Which could result in the move still occurring – but for the benefit of the individual rather than the employer. Put simply, mobility will continue, but people may be localised from day one to suit their need and experience. And on a cost package that better reflects that fact. Which takes us on to our second question.

2. How Much?

Facilitating employee mobility is frighteningly expensive. As we add the impact of inflation on the assignees package and across every service provider linked to the mobile employee experience, we can see that this cost is ratcheting up at an alarming rate.

How much you pay for the mobile employee is a cultural question, not a market question. Because there are now so many models that could be adopted, the “market” is just one input to the picture. In times gone by we could describe an employee as tax equalised, or on a host or home country arrangement. But there are now so many additional variations on a theme.

For example, where we have an employee who is seeking the experience of working overseas, how much should an employer pay?

Think about the following options:

• Just pay the employee the same amount as they earn today

• Make sensible adjustments to ensure the employer is not out of pocket in tax or other “cost to employ” terms

• Make sensible adjustments to ensure the employee is no better off in tax or other “cost to employ” terms

• Make an adjustment also to ensure the employee does not benefit unduly from a better cost of living in the country they wish to move to

• Apply a pay rate applicable to the local market they move to

• Create a new set of global pay bands. If we all work from anywhere, pay arbitrage between regions could soon be a thing of the past

• Create a new set of global pay bands which you then adjust to reflect meaningful cost of living movements in any major jurisdiction

• Designate each role to an office and location and fix the pay to that place irrespective of where the employee is. It is a never-ending cycle of policy questions – and your answer to them will drive attitudes towards mobility and the frequency of it occurring. You have taken a cultural position when answering the question, even if you think you have not.

3. Your Green Credentials?

Travel has its very own carbon footprint - which needs to be front of mind in determining your attitudes to mobility. Advocating mobility without fetter is of course a cultural position you have adopted. In the same way as restricting mobility on environmental grounds would be an equal and opposite cultural position.

Every expat needs their own carbon calculator based upon their travel. And it should be used to establish a more progressive attitude to what travel is appropriate and what is not.

4. Transparency

Showing that you are paying people fairly is key. Dealing with your mobile population in a governance framed and policy driven way will be essential. And increasingly obligations exist in many countries that require an employer to prove that they are getting things right.

Publishing a gender pay report, a CEO pay ratio or demonstrating pay transparency in accordance with new in country directives are all just as important for a mobile employee as they are for a local hire. Put simply, the same rules (should) apply.

Every employer needs to spend time on ensuring its Employee Deal is as strong as it possibly can be within the cost envelope it has available. The trick

is to recognise that it’s not all about reward. And the other aspects in your deal – relating to career, environment and culture are the aspects that genuinely will make the most difference.

KAREN MCGRORY

Karen McGrory is head of expatriate Tax Services at BDO LLP. She has over 30 years’ experience in the field of expatriate taxation. Karen is indebted to David Ellis for his major contribution to this article. If you would like to discuss any of the issues raised in this article, please do not hesitate to contact Karen McGrory on +44 (0)20 7893 2460, e: karen.mcgrory@bdo.co.uk.

Global Tax Update

UNITED STATES

US-Hungary Tax Treaty ceased for taxable periods from 1 January 2024

Back on July 8, 2022, the US provided diplomatic notification to the government of the Republic of Hungary of its termination of the USHungary income tax treaty, which had been in force since 1979. The US Treasury Department stated that the treaty’s benefits were no longer mutual and cited low economic benefits for the US as the reason for the termination.

The termination of the US - Hungary income tax treaty was effective on January 8, 2023. However, in accordance with Article 26 (Termination) of the convention, the treaty will cease to have effect with respect to tax withheld at source on amounts paid or credited on or after January 1, 2024. For other taxes, the treaty ceases to have effect with respect to taxable periods beginning on or after January 1, 2024.

Key provisions that impact globally mobile employees are highlighted below.

Employment Income

Under Article 14 (Dependent Personal Services) of the terminated convention, income earned for services performed in the US by a US non-resident individual who was a resident of Hungary - which would generally be taxable income under US domestic lawcould be exempt from US tax under certain conditions. Generally, income received by an individual:

(1) who was present in the US for less than 183 days in the taxable year,

(2) whose income was paid by a non-US employer, and

(3) whose compensation was not borne by a US permanent establishment of the foreign employer, could be exempt from US income tax. In the absence of the treaty, this same income will now generally be subject to US income tax, even if the same conditions continue to be satisfied.

Residency

An individual who was a resident of both the US and Hungary under each country’s domestic laws previously could rely on Article 4 (Fiscal Domicile) of the terminated convention to assign a single country of tax residency under the tie-breaker rules. Now that the treaty is not in force, this same individual will be subject to tax in both countries on their worldwide income.

Taxes Covered

Article 2 (Taxes Covered) of the terminated convention designated specific Hungarian

and US taxes to which the income tax treaty applied, and which Hungarian taxes would be creditable in the US. The 2022 foreign tax credit final regulations included a treaty coordination rule that allowed foreign taxes treated as income taxes under a US income tax treaty to continue to be creditable for purposes of the foreign tax credit. However, in the absence of a US income tax treaty, a US individual must determine under the new foreign tax credit regulations - which now require that certain attribution rules be met - if a foreign levy is a creditable foreign income tax under the Internal Revenue Code. For the 2023 tax year, the IRS provided temporary relief when determining the creditability of a foreign tax, and allows taxpayers to determine creditability under the former foreign tax credit rules.

Tax Withholding On Some US - Source Income

With the termination of the income tax treaty, the reduced withholding rates on some items of income that individuals previously enjoyed will no longer be available. For example, under Article 9 (Dividends) of the terminated convention, dividends paid to a resident of the other country were generally subject to a withholding rate of 15%. In the absence of the treaty, USsource dividends received by a resident of Hungary who is not a resident of the US will generally be subject to US federal income tax withholding at a rate of 30%.

Similarly, under Article 10 (Interest) of the terminated convention, US - source interest income was exempt from tax at source. Now, with the treaty no longer in effect, this same income will generally be subject to US federal income tax withholding at a 30% rate.

BDO Comment

Termination of a double tax treaty is rare and this decision, while not expressly pointing to Hungary’s opposition to the adoption of the planned global minimum tax, did refer to inequities following the adoption of the current low corporate tax rate. It could, as a result, have a big impact on employers. With the 2023 tax filing season upon us, employers with cross-border employees who previously relied on the US-Hungary income tax treaty to exempt employment income from US taxation, should review their global mobility population to consider any additional tax exposure caused by the termination of the treaty. In addition, in preparation for the 2023 tax compliance season (and especially the 2024 calendar

tax year), employers with US individuals in their international assignment programmes who are subject to Hungarian tax will need to review whether such tax is creditable for the purposes of foreign tax credit in the US.

BELGIUM

New Tax Treaty between Belgium and the Netherlands expected to enter into force next January

The new income tax treaty signed by Belgium and the Netherlands is expected to enter into force on January 1, 2025, subject to approval by the legislative bodies of both countries.

While the new treaty introduces changes that will affect corporations, a number of adjustments will have an impact on directors, employees, and individuals.

The most important change for company directors is that under the new treaty any remuneration paid for attending board of directors meetings will be taxable in the country where the company is established. All other remuneration – for example, remuneration received for the day-to-day management of the company -- will be taxed in accordance with the rules that apply to employees.

Under the current treaty, the taxation of director fees is more complex, and differs depending on whether the director operates under an employment contract or not.

In view of this upcoming change, directors are advised to review the current agreements in place and document which part of the agreement relates to board meetings and which part relates to other activities.

Another important change, for both directors and employees, is that stock options will no longer be included in the so-called ‘compensation allowance’ when the taxable moment in both countries is not the same. As a reminder: Belgium usually taxes stock options at the time of grant, while the Netherlands usually taxes at the time of exercise of the stock options.

The compensation allowance is a correction mechanism that provides for financial compensation to Dutch residents if their employment in Belgium results in a higher tax burden than in a (hypothetical) situation whereby they are solely taxable in the Netherlands. From January 1, 2025, stock options taxed in Belgium at the moment of grant will be excluded from the basis on which the compensation allowance calculation will be based.

Changes Not Coming

Two expected changes were not included in the new treaty.

First, observers anticipated that the complex pension article in the current treaty would be modified but, in the end, the pension article remained unchanged.

Second, the article on employment income has not changed. For a while now, the two countries have been negotiating to find an appropriate solution for the taxation of cross-border teleworkers, the number of which has significantly increased since the end of the Covid pandemic.

The Administrative Commission for the Coordination of Social Security Systems in Europe introduced a Framework Agreement, signed by most but not all EU countries, that allows employees, under certain conditions, to remain subject to the social security scheme of the country where they usually work, even when they are working remotely from their home country.

No such exception exists in the tax rules, so that employees who work remotely in a country other than their normal place of activity will always be confronted with the prospect of split taxation, which leads to additional complexity and also has financial consequences. On the table is the introduction of a de minimis rule allowing employees to work from home for a certain number of days while continuing to be fully taxable in the other country. For example, Belgium and Luxembourg already have such an agreement in place.

Discussions are still ongoing, but in order not to jeopardise the timing of the ratification and application of the new treaty, negotiators decided not to amend the article on employment income and to include those rules in a separate agreement once a compromise has been reached.

Permanent Establishments

One other additional agreement has been reached recently. On 23 November, 2023, both countries signed off on an agreement on the interpretation of the permanent establishment article in the treaty. The purpose of this agreement is to provide clarity to employers in Belgium and the Netherlands on the elements that are relevant in assessing whether remote working situations in the employee’s home country will result in a permanent establishment under article 5 of the treaty.

In general terms, the agreement states that remote work activities in the employee’s home country will not in themselves result in a permanent establishment if those activities cover less than 50% of the total employment time in a rolling period of 12 months. Special attention should be paid to dependent agents/employees whose activities cannot

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be considered to be of a preparatory or auxiliary nature, because they may still create a permanent establishment.

BDO Comment

The agreement of an interpretation of the permanent establishment article of the treaty as it relates to remote working is a particularly welcome aspect of the work to deliver the new treaty as it provides a level of certainty in a complex area for employers to navigate. There is also an increased clarity with regards to arrangements for Directors with this treaty. Less advantageous seems to be the change to the inclusion of stock options within the compensation allowance which may lead to a higher tax burden.

UNITED KINGDOM

The end of P11Ds – or is it?

As part of an effort to simplify and modernise the tax system, on January 16, 2024, the UK’s HMRC announced their intention to mandate the reporting and paying of benefits in kind via payroll software from April 2026.

The two-year warning is much better than the few months’ notice HMRC provided in 2023, on the cessation of paper filing of P11Ds, so that at least is welcome, but there are still many unanswered questions.

HMRC confirmed that they will work with ‘industry experts’ to produce guidance. The Payroll governing bodies should be high on this list of experts, as their job is about to get even more complicated.

Although HMRC have hinted at this move for several years, there remain some benefits in kind that currently cannot be payrolled because of their complexity, including accommodations and beneficial loans. Whether these will have to be payrolled from 2026, and just how that can be achieved in practice, remains to be seen. There are other practical areas that need clarification, including the following:

• Under current UK tax law, employers cannot deduct more than 50% tax from employees’ salaries. What do employers do when this blocks full payrolling for an employee?

• What happens to the current requirement that employers must notify HMRC of the Class 1A liability on employee benefitsthe P11D(b)?

• Will HMRC be able to change its systems to ensure that the tax code of everyone who currently has a BIK restriction is updated correctly for 2026/27?

Although the proposed changes are two years away, and the employer year-end filing season for 2023/24 is approaching fast, employers may wish to start considering now how they will move to payrolling of benefits and the steps needed to get there by 2026.

BDO Comment

The principle of payrolling all benefits may lead to a simplification of the system in time, but there are still some practical hurdles that will need to be overcome in order to make this a working reality. While there is time before the intended mandatory payrolling of benefits, this is an issue that will occupy employers in the intervening period as they determine how their payroll processes need to be adapted in advance of the change.

AUSTRALIA

Increased data available to tax authority brings Superannuation payroll obligation to the fore

The Australian Taxation Office (ATO) plays an important role as a guardian of Australia’s superannuation system. For more than 14 million Australian workers, the ATO ensures that employers make their mandatory contributions to superannuation.

While the overwhelming majority of employers do comply with their obligations, the ATO estimated - in its 202223 superannuation guarantee compliance snapshot - that the gap in superannuation compliance was 5.1% or $3.6 billion. This is a significant amount that employees are potentially missing out on.

To reduce this gap, the ATO uses a variety of compliance methods, from simple reminders to investigations of employee complaints and full-scale audits.

Following the introduction of Single Touch Payroll (STP) reporting, the ATO now has access to real-time salary payment data, and it matches this against contribution data provided by superannuation funds. This process allows the ATO to quickly identify instances where employers are not making their mandatory contributions and to take proactive actions, including sending reminders and prompts for employers to check their obligations.

When the required superannuation has not been contributed on time, the employer is required to lodge a superannuation guarantee charge (SGC) statement with the ATO and pay the SGC liability. In 2022-23, AUD 1.13 billion was raised via SGC liabilities.

Most of the funds raised through SGC liabilities - AUD 534 million - came from just 23,300 employees who made complaints of superannuation underpayments to the ATO, but to date the ATO has completed only 54% of its investigation into those cases. Clearly, employees now have a higher awareness of their superannuation entitlements and are prepared to use the ATO as their champion to recover underpayments.

The ATO also initiated 1,400 audits, which resulted in a further AUD 70 million of SGC liabilities raised. While the number is smaller than the number of employee complaints,

it shows the ATO is active in keeping employers compliant, even if employees are unaware or ambivalent.

In the cases of ATO compliance actions, the SGC liabilities raised include additional penalties of AUD 157 million.

Ther ATO also raised AUD 445 million of SGC liabilities from cases where employers made a voluntary disclosure to the ATO. Importantly, in those cases the ATO has discretion to waive additional penalties and it appears the ATO has waived penalties in most voluntary disclosure cases.

Company directors can be held personally liable for unpaid superannuation when the company has not made payment; 3,660 director penalty notices have been issued.

BDO Comment

The ATO’s ability to obtain and analyse enormous amounts of data in close to real time means employers must be on top of their game.

It’s important for employers to regularly review their time and attendance and/or payroll systems to ensure superannuation contributions are correctly calculated and remitted to the right superannuation accounts by the due date.

When an error is detected, correcting it by making a voluntary disclosure to the ATO

provides the best opportunity for having additional penalties waived. It is also easier for employers to manage the employee engagement aspects, rather than being on the back foot when employees have made a complaint to the ATO.

Employers who receive a reminder or prompt from the ATO should immediately check their contribution records and, if required, take steps to correct any

instances of non-compliance. The ATO is right in most cases.

Finally, superannuation compliance may become even more challenging from 1 July, 2026, with the proposal presented in the 2023–24 budget that would require employers to pay superannuation contributions at the same time as they pay wages. If legislation is enacted, payday superannuation would be a game changer.

KAREN MCGRORY

Karen McGrory is head of Expatriate Tax Services at BDO LLP. She has over 30 years’ experience in the field of expatriate taxation. Karen is indebted to Stuart Strong for his major contribution to this article. BDO is able to provide global assistance for all tax issues arising from an internationally mobile workforce. If you would like to discuss any of the issues raised in this article, please do not hesitate to contact Karen McGrory on +44 (0)20 7893 2460, e: karen.mcgrory@bdo.co.uk.

What Can HR Do To Drive Effective Talent Acquisition?

In an ever-tightening labour market, the ability of an organisation to attract top talent defines its competitive edge. Talent acquisition has evolved beyond the transactional process of filling vacancies; it is now a strategic element that shapes the future of a company.

For HR professionals, the challenge is to orchestrate an acquisition strategy that is as dynamic and forward-thinking as the talent they seek to attract. This involves not just understanding the current employment landscape, but also anticipating the future needs of the business, creating an employer brand that resonates with high-calibre candidates, and implementing a recruitment process that is both efficient and engaging.

One of the key objectives of our People Plan for 2024 is to enhance our approach to recruitment to be seen as an employer of choice, and a great place to work. By doing so, we will be able to better support the ongoing success and growth of the organisation as a whole.

What Are The Key Strategic Objectives Of Effective Talent Attraction?

Effective talent attraction requires a nuanced approach, where strategic objectives are finely tuned to the company’s mission and the evolving marketplace. In order to develop a talent acquisition strategy that is properly tailored to the needs of today’s employees, there are a number of vital objectives:

• Sustainable Recruitment Strategy: developing a recruitment strategy that balances the nurturing and advancement of internal talent with the acquisition of external talent, using advanced tools and methods to streamline the process

• Proactive Workforce Planning: identifying future roles and skill requirements with precision, allowing HR to craft targeted recruitment campaigns that are aligned with the strategic direction of the business

• Enhanced Assessment And Recruitment Processes: refining recruitment processes to not only be efficient, but also to provide a positive experience for all stakeholders involved, ensuring these processes are flexible enough to adapt to changing organisational needs

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• Innovation Through In-House Recruitment: investing in the internal recruitment team to foster innovation in recruitment practices, thereby reducing the reliance on external agencies and building a stronger, more self-reliant recruitment capability. These objectives are designed to place the organisation as a top contender in the competition for talent, ensuring that it is not only seen as an employer of choice but also as a platform for career development and personal growth.

These objectives are designed to place the organisation as a top contender in the competition for talent

What Concrete Measures Can HR Use To Achieve These Goals?

To achieve the strategic objectives set out for effective talent attraction, HR departments should be looking to spearhead a number of concrete measures designed to support these goals:

• Diverse Assessment Methods: employing a variety of selection techniques within an assessment matrix, to ensure a robust and comprehensive recruitment process that evaluates candidates holistically

• Real-World Scenario Assessments: incorporating scenarios that reflect real customer challenges into the selection process to better assess a candidate's practical skills and problem-solving abilities

• Refined Talent Referral Programmes: enhancing existing talent referral schemes to incentivise current employees to

recommend high-quality candidates from their professional networks

• Creation Of Talent Pools: forming talent pools for frequently vacated or difficultto-fill roles to expedite the recruitment process and reduce vacancy times

• Recruitment Evaluation Surveys: deploying surveys to gather feedback on the recruitment process from candidates and hiring managers, providing data to inform continuous improvement

• Managerial Recruitment Training: offering specialised training to managers on effective interview techniques and selection processes to ensure the quality and consistency of hiring decisions

• Implementing A PTR Strategy: adopting a 'Pause, Think, Reflect' (PTR) strategy to encourage leaders to consider diversity and inclusivity actively when building their teams

• Updating The Onboarding Experience: crafting a new onboarding journey that supports new hires from the outset, setting them up for success and quicker integration into the company culture

• Adaptive Recruitment Models: introducing flexible recruitment models that provide different levels of support tailored to the specific requirements of the role and its importance to the business

• Recruitment And Compliance Training

For Managers: rolling out comprehensive training to ensure managers are wellversed in the nuances of recruitment, selection, and right-to-work legislation

• Leadership Personality Profiling: utilising personality assessments for leadership roles to foster self-awareness and team compatibility, aiding in personal development and team dynamics. These measures represent a multifaceted approach to talent acquisition, ensuring that each step of the recruitment process is optimised to attract, select and onboard the best possible candidates.

How Will Success Be Measured?

The success of talent acquisition efforts can be evaluated using a variety of metrics, which allow HR professionals to monitor the effectiveness of their strategies and make informed adjustments. Key performance indicators include:

• First-Time Fill Rate: monitoring the percentage of vacancies filled by the first candidate offer accepted. A high rate

indicates that the recruitment strategy is effectively matching candidate capabilities with role requirements

• Time To Offer: measuring the average time taken from job vacancy to offer stage. A reduced time to offer is an indicator of a more efficient recruitment process

• Candidate Quality: assessing the calibre of new hires, possibly through post-hire performance evaluations, to ensure that recruitment efforts are attracting the right talent

• Employee And Manager Satisfaction: utilising surveys and feedback tools to gauge the satisfaction levels of both candidates and hiring managers with the recruitment process, with high satisfaction scores indicating a positive and engaging experience

• Retention Rates: tracking the retention of new hires over a meaningful period to ensure that not only is the talent acquisition process effective, but the onboarding and ongoing support are also conducive to long-term retention

• Diversity Metrics: evaluating the diversity of new hires to ensure the recruitment process supports a diverse and inclusive workforce, reflecting the PTR strategy's influence

• Cost Per Hire: calculating the average cost involved in making a hire, including

advertising fees, agency costs and internal recruiter hours. An optimised talent acquisition strategy should see this cost stabilise or decrease over time

• Referral Hires: monitoring the number of hires made through employee referrals, which can be a testament to the strength of the internal referral programme and the employees’ belief in the company as a great place to work

• Applicant Pool Quality: analysing the quality and suitability of the applicant pool for open positions, which reflects the effectiveness of the employer brand and the reach of recruitment campaigns.

By closely monitoring these metrics, HR can provide tangible evidence of their talent acquisition strategy's success and identify areas for ongoing improvement. These measurements serve as benchmarks for the HR department's contributions to the company's strategic goals and operational efficiency.

In taking these steps, the role of HR in driving effective talent acquisition becomes pivotal, ensuring that the organisation not only attracts, but also retains the very best of talent. This represents a delicate balance of proactive strategy and reactive agility, requiring constant evaluation and adaptation to the changing dynamics of the job market.

Success in talent acquisition is multifaceted, encompassing not only the filling of positions with competent individuals, but also ensuring these candidates are aligned with the company’s culture and long-term goals. Ultimately, effective talent acquisition is about fostering an environment that attracts, embraces and develops talent, propelling the organisation towards sustained success.

DANIELLE LE BRETON

HR Director at Lanes Group

Danielle Le Breton has a diverse work experience spanning over two decades. Danielle currently serves as the Group HR Director at Lanes Group plc, a position they have held since 2023. Prior to this, they were the HR Director at Sapphire Utility Solutions Ltd starting from October 2021.

WE WOULD LIKE TO INVITE YOU TO OUR

2024 Global HR Conference

Tuesday 30th April 2024

at The Royal Automobile Club, Pall Mall, London, from 12pm - 4.30pm

This event is for Senior Global HR professionals only and is Free of Charge to attend Please join us for this annual event that includes the following seminars:

Sustainability Within Mobility – The Road Ahead

Presented by Andy Conduit, Cartus

The Importance Of Employee Day-Count Tracking When Travelling In The Modern Working Environment

Presented by Tracker Software Technologies (TST)

Navigating Tomorrow: Trends Driving Change In Global Mobility

Presented by ECA International

Current Global Mobility Trends And Tax Update

Presented by BDO LLP

The Power Of Human Connection In A Digital Age:

Presented by UnitedHealthcare Global

A New Era For Global Talent Deployment: Actionable Approaches To Managing Global Talent

Presented by Deloitte, Global Employer Services

To register a place for yourself and your colleagues, please email: helen@internationalhradviser.com with the name/s and job title/s of those who would like to attend. We look forward to seeing you then.

The State Of Play For Women’s Safety Risks Across The Globe

The Progression And Regression Of Women’s Rights In 2024

The landscape for women’s safety risks and rights is always changing. In many parts of the world, the changes are still predominantly negative. In fact, in September 2023, the United Nations stated that the world is failing girls and women as there is a constant shortfall in achieving gender equality.

As a global travel risk management provider, we have always put women’s safety while travelling at the forefront of its operations. Before International Women’s Day 2024, and to help organisations keep their female employees safe while travelling overseas, we compiled a list of the countries that have seen progression in their stance on women’s rights, and safety, and the countries where women’s rights have deteriorated.

Regression

• Femicide is on the rise in countries such as Austria, India, Somalia, and Italy, which puts female travellers at risk. In Vienna earlier this year, five women were killed in the span of 24 hours by men. In India, femicide is considered an epidemic within the country, as women are often killed by their partners or by their families. There have been protests erupting in Somalia as femicide rates rise exponentially. In Italy, there were over 100 femicide victims in 2023 who were either killed by their partners or through a random attack

• The United States has been in the spotlight this year as new legislations are proposed which constantly compromise women’s reproductive rights and safety. Most recently the Alabama State Court ruled that frozen embryos should be considered children which will infringe on a women’s right to undergo IVF treatment. Women’s reproductive care is also not widely available in many states which continues to put women at risk

• El Salvador has fully criminalised abortion and currently has one of the highest femicide rates in the world. Women travelling to El Salvador should be on high alert and always remain in a group

• MENA states such as Egypt, Saudi Arabia, Qatar, United Arab Emirates, and Lebanon still restrict women’s rights to movement as many women require permission from a man, or a male escort, to leave the house. Women are also not allowed to obtain a passport or travel abroad freely

• Iran is still enforcing punitive measures against women who defy compulsory hijab laws and businesses that do not enforce them on their premises. Female travellers should be aware of these laws and follow them accordingly if spending time in Iran

• Attacks on women within the United Kingdom are increasing. Female travellers should exercise caution if travelling alone, especially at night. Recently, a woman and her two daughters were attacked with a chemical substance by a male known to them which highlights an ongoing threat to women’s safety.

Progression

• Australia has increased support for women’s rights globally and continues to be a safe place for women

• Brazil’s supreme court is one step closer to decriminalising abortion which is a major move in the right direction for achieving equality and equity within Brazil

• The European Union advances on a treaty to end violence and harassment at work. The treaty lays out international legal standards for preventing and responding to violence and harassment in the workplace. It ensures governments have comprehensive national laws against harassment and violence at work and ensures there is proper support for survivors. This treaty would ensure a safer working environment for women in the future.

Quotes on how to keep female employees safe while travelling overseas, from Raquel Recuero, Regional Security Manager (Asia Pacific), Healix

Before travel: “Before deploying female members of staff overseas, risk managers at organisations should seek expert advice on local laws and customs regarding women’s rights regarding dress codes and cultural and other regulations that may apply exclusively to women. Compliance with local laws and customs will avoid potentially heavy penalties and mitigate the risk of being targeted”.

Female health and hygiene overseas: “Risk managers need to consider the availability of access to female healthcare and hygiene products and ensure plans are in place to provide quick and safe access to female employees, in the case of an emergency. In some countries, access to certain medication – such as emergency contraception – and sanitary products, can

be difficult. This is especially true in remote areas or areas where menstruation is a taboo issue.

If a female member of staff is pregnant while travelling for work, she should carry a copy of all maternity notes along with details of any pre-existing conditions, and her blood-type. Ideally, all notes are translated into the language of the country she is travelling to – removing any barriers to communication and, therefore, treatment. She should completely avoid any non-essential travel to areas with ongoing high-risk of Zika virus transmission, malaria, and yellow fever”.

Staying safe during the trip: “Risk managers should encourage female members of staff to remain alert while socialising or consuming alcohol overseas. Unfortunately, the use of drugs in sexual assaults is becoming increasingly common and women are at higher risk of experiencing unwanted attention in the form of aggressive, threatening, or inappropriate language, or even physical contact. Look up the numbers of the local police, hospital, or embassy in the area, so they have this information to hand should something go wrong.

Many hotels also now have different safety strategies in place, particularly for lone females, such as safer room allocations, women-only floors with female security, escorts and more. Talk to the hotel where your female employees will be staying, to see what they have in place”.

RAQUEL RECUERO

Regional Security Manager (Asia Pacific), Healix

As a Regional Security Manager at Healix, Raquel oversees the security operations and the delivery of consultancy for clients in the Asia Pacific region. She has more than five years of experience in the security industry, working as an Associate Consultant and a Senior Regional Security Coordinator at Healix before taking on her current role.

Raquel has a Master of Arts in Intelligence Analysis from Universidad Rey Juan Carlos and a Bachelor of Arts in International Relations from Universidad Autónoma de Madrid, with a minor in International Cooperation. She has also completed several certifications in structured analytic techniques and social project management for NGOs and CSOs. E: raquel.recuero@healix.com

INTERNATIONAL HR CONSULTANTS

DELOITTE LLP

Stonecutter Court, 1 Stonecutter Street, London, EC4A 4TR

Contact: Danny Taggart

Telephone: +44 (0) 20 7007 1832

Fax: +44 (0) 20 7007 1060

E-mail: dtaggart@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.

RELOCATION ASSOCIATIONS ASSOCIATION OF RELOCATION

PROFESSIONALS (ARP)

9&10 Diss Business Centre, Dark Lane, Diss, Norfolk, IP21 4ND

Contact: Tad Zurlinden

Telephone: +44 (0)1379 651 671

Fax: +44 (0)1379 641 940

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 ASSOCIATION (EuRA)

9&10 Diss Business Centre, Dark Lane, Diss, Norfolk, IP21 4ND

Telephone +44 (0)1379 651 671

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.

www.internationalhradviser.com

SCHOOLS

ACS INTERNATIONAL SCHOOLS

ACS International School Cobham

Heywood, Portsmouth Road, Cobham, Surrey, KT11 1BL, England

ACS International School Egham

London Road (A30)

Egham, Surrey, TW20 0HS, England

ACS International School Hillingdon

Hillingdon Court, 108 Vine Lane Hillingdon, Middlesex UB10 0BE, England

ACS International School Doha

Al Oyoun Street, Al Gharrafa PO Box 200568, Doha, Qatar

Telephone: 01932 869 744

Email: cobhamadmissions@acs-schools.com

Website: www.acs-schools.com

Contact: Dean of Admissions

ACS International Schools were founded in 1967 to serve international and local communities. The schools are non-sectarian and co-educational (day and boarding), enrolling students aged 2 to 18 years. The UK based schools have over 30 years’ experience of teaching the International Baccalaureate, and ACS Doha offers an international and American curriculum.

TASIS THE AMERICAN SCHOOL IN ENGLAND

Coldharbour Lane, Thorpe, Surrey TW20 8TE

Contact: Sarah Travis

Telephone: 01932 582316

Email: ukadmissions@tasisengland.org

Website www.tasisengland.org

TASIS England's diverse student body includes over 50 nationalities and many in the school community have experienced the challenges of relocation. Along with well-established welcoming programs, families receive ongoing support as they cope with the practical and emotional aspects of their transition to life in the UK. Taught in small classes, students (ages 3–18) benefit from a balance of academics, arts, athletics, activities, and service leadership. Excellent exam results and oneto-one college counselling enable 97% of TASIS graduates to gain acceptance to their first- or second-choice university in the UK, the US, and worldwide.

SERVICED APARTMENTS

THE ASSOCIATION OF SERVICED APARTMENT PROVIDERS (ASAP)

Suite 3, The Business Centre, Innsworth Tech Park, Innsworth Lane, Gloucestershire GL3 1DL

Contact: ASAP Office

Telephone: +44 (0)1452 730452

Email: admin@theasap.org.uk

Website: www.theasap.org.uk

Twitter: @ASAPThe

LinkedIn: The Association of Serviced Apartment Providers

ASAP is in the industry association representing, promoting and improving the serviced apartment sector. Our 124 members including serviced apartment operators and agents represent in excess of 25,000 serviced apartments in the UK, Europe, USA and Canada. When booking your serviced apartment, look for our Quality Accreditation kitemark which confirms the operator is fully compliant with all the core legal, health and safety practices and means you can book with confidence.

TAXATION

BDO LLP

55 Baker Street, London, W1U 7EU

Contact: Karen McGrory

Telephone: 020 7893 2460

Fax: 020 7893 2418

E-mail: karen.mcgrory@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 1500 offices in 162 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.

GLOBAL TAX NETWORK LTD

1st Floor, Andrews House, College Road, Guildford, GU1 4QB

Contact: Richard Watts-Joyce CTA, ATT

Telephone: +44(0) 207 100 2126

Email: rwattsjoyce@gtn.uk

Website: www.gtn.uk

Twitter: @GTN_Tax

LinkedIn: www.linkedin.com/company/globaltax-network

Global Tax Network Ltd is the UK member of Global Tax Network (GTN), an international affiliation of professional firms in over 100 countries specialising in global mobility tax consulting. We provide assistance to employers with the tax administration of international assignment programs and private client services to high net worth individuals, non-domiciles, professional sportspersons and entertainers. Our consultants include members of the Association of Taxation Technicians, Chartered Institute of Taxation, and US Enrolled Agents.