Long-term temporary assignments
Long-term temporary assignments typically span one to three years, though it is not uncommon that they are extended to five years or more. Most companies focus on keeping long-term assignments to a five-year maximum as a cost management effort to align with the maximum period of tax-related totalisation agreements. Another reason is the recognition that if a business need exists that requires more than a five-year term to address, it may be more effective to consider a permanent solution. Today, long-term assignments are used to meet a variety of business needs, including global leader development, expansion into new markets or a new facility start-up. Companies considering long-term temporary assignments should establish whether the home country balance sheet approach is the only viable package to use, or whether they align the employee’s compensation with the host location norm. Any support elements required, that cannot be addressed through compensation such as international schooling for accompanying dependents and provisions like home leave that apply only to expatriates, will also need to be measured.International transfers
International transfers are akin to domestic relocation and may be used when the duration of a stay abroad is unknown. Traditionally, they have been used when an employee fills a permanent position in the destination country. It does not guarantee that the employee will not move again or even repatriate eventually. The key differences between this and a long-term temporary assignment are that home sale and home purchase assistance are often provided for employees undertaking a permanent transfer. International transferees are put on the destination location’s payroll and transitional assistance (such as a spouse/partner employment allowance) is typically provided but elements such as education assistance for accompanying dependents are not.Employee requests for long-term assignments or international transfers
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