Long Term Assignment (LTA) Policy 1
Long Term Assignment (LTA) Policy CONTENTS 1. Introduction 1.1. Policy Statement 5 1.2. Objectives 5 1.3. Assignment Duration 5 1.4. Scope 6 1.5. Employment 6 1.6. Governing Law and Jurisdiction 6 2. Compensation 2.1. Overview 7 2.2. Assignment Payroll and Split Pay Delivery 7 2.3. Exchange Rates 8 2.4. Assignment Salary and Pay Review 8 2.5. Responsibility Allowances 9 2.6. Taxation 9 2.6.1. Tax Equalisation 9 2.6.2. Hypothetical Tax Calculation 9 2.6.3. Pre / End of Assignment Tax Advice 10 2.6.4. The Assignee s Responsibility 10 2.6.5. Reconciliation of Hypothetical Tax 10 2.6.6. Termination 10 2.7. Social Security 11 2.8. Pension 11 3. Host Country Allowances and Benefits 3.1. Assignment Compensation Package 12 3.2. Eligible Family Members 12 3.3. Cost of Living Allowance (COLA) 12 3.4. Expatriate Location Allowance (ELA) 13 3.5. Host Accommodation 14 3.6. Below Host Housing Maximum Incentive (BHHMI) 14 3.7. Host Transportation 15 3.8. Dependant Education 15 3.9. Home Leave 16 3.10. Dependant Visits 17 4. Special Circumstances 4.1. Dual Career Assignment 18 4.2. Permanent Split-Family Transfers 18 4.3. Temporary Split-Family Transfers 18 4.4. Family Status Changes 19 4.5. Absence While On Assignment 19 5. Pre-Assignment Preparation 5.1. Pre-Assignment Briefing 19 2
5.2. Assignment Acceptance 20 5.3. Assignee Personal Data Statement 20 5.4. Passports 20 5.5. Host Country Immigration 20 5.6. Home Country Immigration 21 5.7. Health Screening and Immunisations 21 5.8. Medical Records 22 5.9. Insurance Briefings 22 5.10. Tax Briefing and Consultation 22 5.11. Home Country Housing 23 5.12. Home Country Schooling 23 5.13. Home Country Cars 23 5.14. Driving Licence 23 5.15. Personal, Financial and Legal Matters 24 6. Relocation 6.1. Relocation and Assignment Expenses 24 6.2. Travel Abroad Safety Guidelines 24 6.3. Pre-Assignment Visit 25 6.4. Shipment 25 6.5. Pet Shipment 27 6.6. Storage 27 6.7. Moving and Settling in Days 27 6.8. Relocation Travel 27 6.9. Settling in Support 28 6.10. Host Country Bank Account 28 6.11. Temporary Living Support 28 6.12. Miscellaneous Relocation Allowance (MRA) 29 6.13. Home Search and Securing the Host Property 29 6.14. Embassy Registration 30 6.15. Host Health and Safety Induction 30 7. On Assignment 7.1. Host Job Title 30 7.2. Working Hours 31 7.3. Public Holidays and / or Legally Observed Holidays 31 7.4. Holiday Entitlement and Paid Time Off (PTO) 31 7.5. Language Lessons 31 7.6. Cultural Training 31 7.7. International Health Insurance Plan 32 7.8. Tax Return Preparation 32 7.9. Grievance and Disciplinary Issues 32 7.10. Voluntary and Forced Housing Moves 32 7.11. Emergency and Bereavement Leave 33 8. End of Assignment 8.1. Assignment Extensions 33 8.2. Consecutive Assignment 34 8.3. Localisation 34 8.4. Early Repatriation 34 8.5. Termination of Employment 35 8.6. Termination of Employment with a Cause or for Gross Misconduct 35 3
8.7. Resignation 35 8.8. Serious Illness or Death 35 9. Repatriation 9.1. Proactive Approach 36 9.2. Repatriation Process Briefing 36 9.3. Repatriation Tax Briefing 36 9.4. Repatriation Expenses 36 9.5. Pre-Repatriation Trip 36 9.6. Host Country Housing 37 9.7. Host Country Cars 37 9.8. Host Immigration Status 37 9.9. Repatriation Shipment 37 9.10. Repatriation Storage 38 9.11. Repatriation Travel 38 9.12. Repatriation Moving Days 38 9.13. Temporary Living Support 38 9.14. Home Country Residence 39 Appendix 1 Definitions 4
Long Term Assignment (LTA) Policy 1 Introduction 1.1. Policy Statement The University s Long Term Assignment Policy is designed to offer a consistent international assignment compensation approach and relocation support for colleagues who are required to move on a temporary basis to work at the University s various international Campuses. This policy is effective from 1 November 2017 and applicable for any new Assignees who receive a long term international assignment offer after this date. This Policy should be read in conjunction with the Assignment Letter, which details those assignment benefits the individual Assignee is eligible for and which are specific to the host location. The University reserves the right to amend or delete provisions of this policy at any time. This Policy is not a legal document or a contract of employment. 1.2. Objectives The main objectives of this policy are to: Provide transparent, clear a concise information to all staff about relocation and international assignment benefits. Ensure fair and equitable treatment of all University Long Term Assignees using objective and consistent data sources. Offer a competitive compensation and benefit programme that provides adequate and appropriate host country support. Meet global compliance requirements in the area of tax, social security, immigration and employment law. Provide a framework and logistical support to facilitate a smooth initial relocation and both a successful assignment and repatriation. 1.3. Assignment Duration This policy is only applicable if the length of the temporary international assignment is more than 1 year but generally less than 5 years. In exceptional cases consideration may be given for assignment extensions up to 10 years. Approval of such exceptional arrangements will require the authorisation of at 5
least two members of the University Executive Board, one of which must be the Executive Director of Human Resources. At the end of the assignment the Assignee may return to the home country or be re-assigned to another location. If at any point the assignment role becomes permanent and the Assignee is required to remain in the host country, then they will be requested to be localised. If the Assignee does not want to be localised at the host location, then in line with original plans, they will have the choice to be repatriated to the original home location upon completion of the international assignment. 1.4. Scope The support outlined in this document is only available to those employees who at the request of the University, due to a business need, are required to go on international assignment between the University s various international campuses. In all cases the international assignment is temporary, with a clear intention that after the completion of the secondment the Assignee will repatriate to the employing home country location. The policy excludes: Less than one year Short Term Assignments Flying faculty Assignments to any other locations. Employees who initiate a temporary international assignment for personal reasons to the University s overseas campuses. New staff recruited with the intention to fulfil a local position. Existing employees who are internationally relocating to another branch campus on a permanent basis. This policy will not normally apply in cases where individual academics or researchers request to undertake part of their work, such as a research study or trial etc. outside of their country of employment. Periods of unpaid leave / sabbaticals. Any academics/employees who live overseas but work for the University remotely, in a permanent role. 1.5. Employment During the Long Term Assignment the Assignee remains an employee of the home country and the original employment contract with the home country organisation remains in place. 1.6. Governing Law and Jurisdiction The assignment and the underlying employment contract are governed by home country law, unless the application of the host country legislation is a statutory 6
requirement. If the application of the host country legislation is mandatory, however the home jurisdiction offers more protection to the Assignee, then the home country law will be enforced. For sake of simplicity this policy is written with the assumption that the home country law, policy and practices are to be followed. However as and when required, a thorough analysis of legal requirements will decide the actual approach to be taken as and when matters arising on a case by case basis. The Assignee and the accompanying family members are expected to comply with the laws and customs of both the home and host countries. It is also expected that the Assignee will conduct all University affairs with high standards of integrity in line with the University s Code of Conduct and Policies. 2 Compensation 2.1. Overview The University s Long Term Assignment Compensation approach is the home country balance sheet reconciliation method. This is a concept that is designed to ensure that the long term assignment will not have a negative or a positive impact on the Assignee s standard of living or savings while temporarily posted abroad. By maintaining the home country compensation and benefits during the LTA, this approach also facilitates the repatriation to the home country at the end of the assignment. Based on independent consultant data this method compares the hypothetical home and host country costs for housing, taxes, social security liability and cost of living. During the assignment the host country housing cost is fully covered by the University and the Assignee is expected to pay approximately the same amount on taxes, social taxes and goods and services in the host country as they would be hypothetically liable to pay if still living and working in the home country. If the costs of these are higher than the hypothetical home country contribution, the University will provide a supplement in the form of allowances or reimbursement, in order to cover the excess cost. It is important to note that this approach uses normative data and not customised to individual Assignees. The payment provisions described in this policy are typical for international assignments to many countries, however the method, timing and location of payments might be modified for any reasons at the discretion of the University. 2.2. Assignment Payroll and Split Pay Delivery The Assignment Payroll is centralised in the UK, where the total LTA compensation is calculated during the secondment. The salary is paid monthly in arrears, normally on the last banking working day of the month. 7
The University operates a split payroll arrangement during the assignment: To the Assignee s home country bank account in home currency: an elected portion of the home country currency based assignment net compensation. To the Assignee s host country bank account in host currency: the remaining portion of the home country currency based assignment net compensation converted to host currency and in addition any host country allowances that are based in host currency. It is the Assignee s decision how the home country currency based assignment net compensation is split for payroll delivery purposes. As required at the sending and the assignment locations, payroll will report salary and allowances to ensure taxes and social security payments are paid during the assignment. 2.3. Exchange Rates As the University operates a split payroll delivery arrangement for the long term assignees, we acknowledge that when the Assignee elects a portion of the home country currency based pay to be delivered to the host country bank account, then a conversion happens from the home to host currency. Through the split pay delivery the University operates an automated exchange rate support system. Through this method the split pay will be converted and delivered on a Payroll Exchange Rate (PER), this arrangement will remove exposure to the Assignee s banks exchange rates, ensuring that the Assignee is not charged with any potential international bank transfer or transaction fees. The Payroll Exchange Rate (PER) is set up based on an average of the exchange rates during the three months prior to review. It is fixed for a six monthly pay period and reviewed on 1 February and 1 August each year. The exchange rates will be monitored each month and if there is a fluctuation more than 10% and remains at that level for a four week period, then the Payroll Exchange rate and the Cost of Living Allowance will be updated with immediate effect, prior to the standard six monthly payroll update. Cost of Living Allowance changes reflect the impact of exchange rate fluctuations. Therefore, the University will not provide further exchange rate protection in any form. 2.4. Assignment Salary and Pay Review The Assignee will continue to receive the home country salary reflected in home country currency in line with the home country compensation and payroll process. The pay will be kept at an appropriate point on the relevant home country pay scale and any pay progression will be administered following the normal home country rules. The salary will be delivered on a net-after-hypothetical home country taxes, social security and other plans (e.g. pension) basis. 8
Bonus payments are evaluated as part of the home country pay review process based on home country policies and practices. 2.5. Responsibility Allowances Responsibility Allowances will be provided based on home country compensation practices. 2.6. Taxation 2.6.1. Tax Equalisation The University operates a tax equalisation system with regards to long term assignments. The purpose of this policy is that the assignment does not create a tax advantage for the Assignee, nor does it create a tax disadvantage. The Assignee is liable to a hypothetical income tax based on the tax they would have paid had they not gone on international assignment. The principle of equalisation also extends to social security, so the Assignee is responsible for the equivalent level of employee social security contributions they would have made had they remained in the home country. 2.6.2. Hypothetical Tax Calculation Based on the principles of tax equalisation, throughout the period of the assignment the Assignee is responsible for the hypothetical home country tax calculated on stay-at-home or home country compensation items only. This also means that the equalisation protection is offered on University income only. Other professional or personal income and gains are not tax equalised while on University assignment. By calculating hypothetical home country tax and social security the University ensures that the rate of income taxes and social security contributions on the home country University pay will be the same as if the Assignee remained in the home country. The basis for calculating the hypothetical tax and social security is the home country salary, responsibility allowances and bonuses. Any assignment allowances and benefits are provided as a net support to the Assignee, which means those are not included in the hypothetical tax and social security calculation. The actual tax and social security liability due on any assignment pay e.g. on salary, allowances, relocation costs or any assignment benefits in the home or host location is the responsibility of the University. If the Assignee is provided with a Pension Allowance, than the hypothetical tax calculation will reflect any relief for stay-at-home pension contributions in line with home country legislation. The hypothetical home country tax and social security is calculated upfront and provided to the Assignee together with the Assignment Offer Letter, as part of the detailed Assignment Net Compensation Illustration. The hypothetical tax and 9
social security is revised any time there is a change in home country salary, responsibility allowances or bonuses or there is a change in home country tax, social security legislation or rates. The Assignee will be provided with an updated Assignment Net Compensation Illustration every time the hypothetical tax and social security is reviewed. 2.6.3. Pre / End of Assignment Tax Advice The Assignee will receive pre- and end of assignment tax advice as well as assistance in filing the home and host country tax returns via the University s tax advisors. 2.6.4. The Assignee s Responsibility As soon as they occur, the Assignee is responsible for reporting any changes in personal circumstances which might have an impact on their hypothetical tax, social security, or home or host tax position to the International Human Resources Personnel. The University will take advantage, whenever possible of any existing favourable tax rates or tax credits in the home or host locations. The Assignee is expected to provide full cooperation in this process. The Assignee is also responsible to take all reasonable actions to minimise the assignment related host or home tax and social security costs of the University. The Assignee is liable to cover any additional tax or social security cost that arise as a consequence of personal choices. By signing the Assignment Agreement, the Assignee agrees to the University s tax equalisation approach and also agrees to work with the University and our external tax consultant to ensure compliance in a timely manner even after employment completion resulting from voluntary or involuntary termination or natural end of employment contract. The Assignee is responsible for all financial interest and penalties that may be charged due to lack of timely cooperation on their part. 2.6.5. Reconciliation of Hypothetical Tax As part of the tax equalisation process, following the completion of the Assignee s home country income tax return, our external tax consultant will create a detailed tax year end reconciliation calculation in order to determine whether the hypothetical tax and social security deducted by the University was correct, based on actual circumstances throughout the tax year. As a result of this analysis the Assignee might receive a refund or might be required to pay further hypothetical tax / social security to the University. 2.6.6. Termination If at the end of the international assignment the home country employment is terminated and the Assignee is due a termination payment, that payment will 10
also be covered by the tax equalisation policy. This means the payment will be subject to hypothetical home country tax and social security deductions based on the position had they not gone on International Assignment and any actual taxes due either at the host or home locations will be borne by the University. 2.7. Social Security The University applies a social security equalisation policy. This means that during the assignment hypothetical social security will be deducted (as detailed in Paragraph 2.6.2) via payroll to ensure the Assignee s contributions are the same as if the Assignee had remained in their home country. The hypothetical social security is also included in the annual equalisation reconciliation process calculated by the University s external tax consultants. As in the case of the tax equalisation, the Assignee might receive a refund or might be required to pay further hypothetical social security contributions to the University. The University will take advantage, whenever possible of any existing favourable international treaties / totalisation agreements governing social security coverages. The Assignee is expected to provide full cooperation in this process. Where possible, the University will look to maintain the Assignee within the home country social security system where the Assignee meets the criteria. In case of assignments between countries with existing reciprocal social security agreements, the University will apply for an exemption certificate from the host system to ensure that there is a home country social security liability only. If the assignment is between countries with no reciprocal agreement on social security the University will pay actual social security contributions as regulated by home and host country legislation, and continue to deduct hypothetical social security based on home country compensation. When continuation within the home country social security scheme is not mandatory, the University recommends the Assignee makes voluntary contributions to the home country social security scheme if possible, in order to protect their contribution record for pension or other contributory based state benefits. Due to the social security equalisation approach the Assignee s own voluntary contributions are reimbursable expenses. 2.8. Pension When prior to the assignment the Assignee is already a member of an existing home country pension scheme, throughout the LTA the Assignee will be able to maintain their home country retirement or pension scheme participation, subject to the rules of the home pension plan. If prior to the assignment the Assignee is a member of a pension plan which does not allow participation while on assignment abroad, the University will provide the Assignee with a Pension Allowance to the same net value and level which is equivalent with the home plan s employer s contribution. This Pension Allowance is a net support, exempted from hypothetical tax or hypothetical social security calculations and any actual taxes due either in the home or host country 11
will be borne by the University. As explained in paragraph 2.6.4 when a Pension Allowance is provided, the hypothetical tax will reflect any relief in line with home country legislation. Only when as a result of the international assignment it is not possible to maintain participation in the home pension plan, and where through that scheme the Assignee would have been eligible for Life Insurance benefit, the cost of a similar life cover is a reimbursable expense, based on three quotes. No Pension Allowance will be provided when the Assignee was not a member of a home country pension scheme prior to the commencement of the assignment, except when the assignment start date is the same as the home country employment start date, in which case the home country pension plan participation is automatically assumed. 3 Host Country Allowances and Benefits 3.1. Assignment Compensation Package During an LTA an assignment compensation package is provided in addition to the home country compensation. This is built up based on the eligible host country benefits and allowances, the home/host country combination and the number and age of eligible accompanying dependants. Detailed and individualised information is provided in the Assignment Net Compensation Illustration. 3.2. Eligible Family Members This policy s host country allowances and benefits are extended to include any traditional dependants and eligible domestic partner, when joining the Assignee at the host location for the assignment duration. Other non-eligible family members or Domestic Staff are not supported by the benefits provided within this policy, this includes immigration support. However if there are no legal or immigration restrictions, they are allowed to join the Assignee during the assignment at the Assignee s own cost. 3.3. Cost of Living Allowance (COLA) The cost of goods and services at the host location may be different from the cost for the similar goods and services (e.g.: food, clothing, recreation, personal care, household operations and transportation etc.) at the home country. To understand the home and host difference in pricing the University uses an external consultant s survey data. When analysing data, the survey assumes the home country purchasing pattern is maintained with some changes required for adaption to a different country and to expatriate living. 12
With the help of the consultant s online tool and based on the Payroll Exchange rate the University establishes a Cost of Living Index (COLI) for each assignment country combination and fixes it for the six months pay periods. This means the COLI and the linked allowances are normally reviewed at the time of the February and the August payroll updates or when there is an exceptional PER update resulted from major currency fluctuations. Scenario 1) the host location is more expensive: If the COLI is above 100, that shows that the price of the goods and services are higher at the host location than in the home country. In this case a Cost of Living Allowance (COLA) will be provided to protect the buying power of the Assignee s net assignment salary. This allowance is not intended to cover the entire net pay, but only that portion of it, which is based on average patterns normally spent on goods and services. The COLA is a net payment and any taxes due will be covered by the University. The COLA will be paid effective as of the payroll transfer date and will consider the Assignee s eligible family who are transferred at the same time to the host location. If the assignment is started on a split-family basis, the COLA will be initially calculated on a single status basis and will be adjusted when the family joins the Assignee at the host location. Scenario 2) the home location is more expensive: If the COLI is below 100, that shows that living at the host location is cheaper for the Assignee. In such cases the University will not take a deduction due to the Assignee s gain, so the Assignee will benefit from the advantage of living in a location with a lower cost of living. It is important to note, that the exchange rate fluctuations have a direct impact on the value of the COLI. If due to exchange rate changes living at the host location becomes relatively more expensive, the impact is balanced off by an increase in the value of the Cost of Living Allowance or, if it is a cheaper country there will be a decrease in the negative cost of living differential - which the University has decided not to apply. If the host location is cheaper than the home country, the University will not provide any financial support to compensate for changes in the Assignee s Cost of Living gain. Where the COLI rises above 100 due to exchange rate fluctuations at a location where it was initially cheaper and below 100, the Assignee will start to receive a Cost of Living Allowance. The COLA is not a fixed amount, but may increase or decrease as a result of new consultant data or other factors such as increases in salary, changes in the number of dependants at the host location or exchange rate fluctuations. The individualised Assignment Net Compensation Illustration sheet is intended to provide information on the Assignee s actual Cost of Living Allowance or gain in a pay period. 3.4. Expatriate Location Allowance (ELA) At locations where a higher degree of adjustment from the Assignee and dependants may be required, the University will pay a monthly Location Allowance 13
equal to a percentage of the Assignee s home country salary. Any tax due on this benefit will be borne by the University. The University uses external consultant data to evaluate location ratings and linked eligibility for Expatriate Location Allowance support. The location ratings and the allowances are fixed for the assignment duration. This support is normally provided for locations where there are some hardship factors such as, but not limited to: reduced availability of goods and services, isolation, limited availability of medical facilities, political instability, personal security and environmental conditions. 3.5. Host Accommodation The University s aim is to provide adequate and appropriate host country housing, but does not have the intention to match home country housing standards. Host country housing will either be designated by the University or selected by the Assignee, depending on the host location. When the University designates the host country accommodation, the rent will be paid on behalf of the Assignee directly to the landlord and no Housing Allowance will be provided. Where the host housing is selected by the Assignee, the University determines a budget for accommodation based on external consultant data, the Assignee s host family size and seniority. If the actual housing costs for the Assignee s selected rental property exceeds the budget, it is the Assignee s sole responsibility to cover the additional host accommodation cost incurred. If the actual housing cost is lower than the budget, then the housing allowance is capped in the value of the actual rent. When the host house is selected by the Assignee, the University will determine the most tax efficient and easy to administer solution for housing allowance payment. Strictly for the period covered by the tenancy, the University will pay either: 1. a housing allowance to the Assignee via monthly payroll. In this case the tenancy is in the name of the Assignee, or 2. the rental fee directly to the landlord each month. In this case the tenancy will be in the name of the host organisation. The housing budget is normally fixed for the assignment duration, unless there is a major market price change and the rental fee of the Assignee s existing host accommodation is increased by the landlord beyond the original housing limit set at the assignment start. In this case the University will review the housing budget in line with the external consultant s host accommodation cost data at the time. 3.6. Below Host Housing Maximum Incentive (BHHMI) If the rental cost of the Assignee s selected host house is lower than the 14
provided budget, the Assignee will be eligible to receive a monthly BHHMI payment equal to 50% of the total monthly net savings in host currency. This incentive allowance will be paid through the host country split payroll in host currency as a net payment and any taxes due are borne by the University. The Assignee will be eligible for this allowance as long as they are active on assignment and living in the same host accommodation with no change in the original rental price. If during the assignment the monthly rental fee for the existing accommodation changes due to market price changes, or the Assignee moves host accommodation for any reason, then the BHHMI will be recalculated based on the most up to date housing budget and the new rental fee. 3.7. Host Transportation The University as a standard does not provide a car or a transportation allowance at the host country as an assignment benefit. The host country s travel policy and practices will regulate any transport provision in connection with University business at the host country. The cost of personal travel or standard work commuting are non-reimbursable. Only when the assignment is at such a location where a car is considered to be essential for business use, or the public transportation is limited, then either a host country car or a transportation allowance is provided. Provision of a car is also dependent on the Assignee meeting host country driving licence requirements. The transportation allowance is not intended to fully cover the host transportation cost, but rather a contribution to it. It is calculated based on outside consultant data and annually reviewed in August. 3.8. Dependant Education Education Allowance is only provided at locations where the host provisions are deemed inappropriate. In these cases based on external consultant data the University will set Education Allowance limits specific to the host country. The University provides Education Allowance only for compulsory host country primary and secondary level education (i.e. normally after the child turns 4 years old, maximum up to 18 years of age). Exceptionally this allowance can be utilised for covering the cost of home schooling or Boarding School, if the host country primary and secondary schooling system is deemed inappropriate for any reason. No Education Allowance is provided: For supporting childcare, nursery and organised play groups. Covering the cost of studies at University or College level education. When children remain in the home location living with another parent. When the children s Boarding School education is not a result of lack of suitable schooling at the host location: e.g. the Assignee s children were already in boarding school even prior to the assignment start. 15
The Education Allowance is based on average international school fee data at the host country and we acknowledge that dependent on the Assignee s personal school choices it might not entirely cover the whole fee for the preferred host school tuition fee. The University s intention is to cover the school fee up to the limit set by the Education Allowance. This means if the actual school fee exceeds this limit, no further University support will be provided and it is the Assignee s sole responsibility to cover the extra cost. If the tuition fee is below the limit, any unused funds will be forfeited. The Education Allowance maximums will be set for primary and secondary level. The University provides Education support up to two eligible dependant accompanying children only. This means that the maximum support available to any family in one year will be equivalent to 2 secondary school allowances, presuming there are at least two secondary school age children in the family. If the family has more than two children, the total Education Allowance may be used to support as many places as are needed by the family. In addition to the Education Allowance a one-off support for registration and administration fee will also be available for each eligible child, with a maximum of 2 allowances in any year. The University will not reimburse cost for private tuition, extra-curricular activity, uniform, books, school meals, transportation or other miscellaneous items. The Education Allowances are reviewed annually in August with data obtained by the University external consultant. 3.9. Home Leave The aim of the Home Leave Flight Budget is to help the Assignee and the eligible dependants relocated to the host location to maintain ties with their home country. For each full year on assignment, the flight budget will be set up based on the cost of one return trip per year, unrestricted, economy class airfare between the home and the host headquarter locations calculated for each eligible family member transferred to the host location. The flight pricing used for the home leave flight budget calculation is reviewed annually in August. Any tax due on this benefit will be borne by the University. The flight budget is flexible and may be used for the following: For the Assignee and their accompanying eligible family to travel back to the home country; For non-accompanying traditional or other family members to visit the host country. No support will be provided for non-family members visiting the host location. The home leave fund is not restricted to a single return journey and the Assignee may choose to spread the budget to support more than one trip. However any flight costs exceeding the flight budget will be the Assignee s cost and the University will not provide expense reimbursement beyond the set limit. Unused funds are forfeited and not transferable for the following year. 16
When the Assignee selects the timing, preferred airline and route for the dependant visits, advanced booking is suggested and procurement best practices are to be followed in order to minimise University cost. In addition to the flight budget, in each year the Assignee and their accompanying family members will be eligible for a one time (per family unit) reimbursement of reasonable transportation costs to and from the airport. This support is provided for the family s return home visit only and it is not available for other family members visiting the host location. Time off during home leave is considered to be vacation. However when the travel time exceeds 12 hours from host to home location, it will not count as a vacation, but one travel day each will be provided for both the home and the return flight. This extra time off support is available once in each year for the Assignee only, but not for the accompanying family members. 3.10. Dependant Visits This support will be provided only in the case of permanent split-family situations. The aim of the Dependant Visits Flight Budget is to help the Assignee and the traditional family members staying in the home country for the assignment duration to maintain family ties. For each full year on assignment, the flight budget for traditional dependents will be as follows: For children under 18, spouse or partner: the cost of two visits per year on roundtrip, unrestricted, economy class airfare between the host and the home locations calculated for each eligible dependent family members staying in the home country. For children between 18-23 years of age, studying in full time University / College education the entitlement will be calculated based on one trip per year. The flight pricing used for the dependant visitation fund calculation is reviewed annually in August. The budget can be used only for the eligible traditional family members to visit the Assignee in the host country. Any income tax due on these flights will be borne by the University. Transfer costs to / from the airport is not intended to be covered by this support and are not reimbursable expenses. The number of flights reimbursed is not restricted, however only economy class tickets are permitted. When the Assignee selects the timing, preferred airline and route for the dependant visits, advanced booking is suggested and procurement best practices are to be followed in order to minimise University cost. Any flight cost exceeding the flight budget will be at the Assignee s expense. Unused funds are forfeited and not transferable for the following year. 17
4 Special Circumstances 4.1. Dual Career Assignment When both the Assignee and the accompanying spouse are offered a secondment position at the host location, the couple will be transferred on a dual career basis. This means that the individual home country compensation and long-term plans participation will continue and the Cost of Living, Location and Car Allowances will be provided on an individual basis. However any other relocation support and assignment benefits are offered without duplication, which means that only one set of benefits are provided for one relocating family unit. Therefore only the higher earner will be eligible for Host Housing, Home Leave, Dependant Visit, Education and Miscellaneous Relocation Allowance support. The University requires the Assignee to report when two originally single status Long Term Assignees start to cohabitate or get married, as in those cases the assignment compensation packages will be reviewed in order to avoid the duplication of those relocation benefits that are provided per family unit. 4.2. Permanent Split-Family Transfers When the Assignee is transferred without the dependent family members or e.g. with the spouse only and not with dependent children, the assignment compensation will be provided on a permanent split-family basis: Pre-assignment visit for Assignee only. The Host Housing and the Home Leave Flight Budget and the Cost of Living Allowance will be calculated only for the actual family size transferred to the host location for the entire assignment duration. Assignment Health Insurance cover is provided only for dependent family members relocating to the host location. Dependant Visit Flight Budget set to enable each dependent family member to visit the Assignee at the host location. 4.3. Temporary Split-Family Transfers The temporary split-family transfer arrangement is applicable when the Assignee s traditional eligible immediate family are expected to relocate to the host location at a later date, at least 2 months after the assignee is relocated, but within the first 6 months from the assignment start. In this scenario the compensation will be provided on a temporary split family basis: The Host Housing Budget and the Home Leave Flight Budget will be calculated based on the total Family Size intended to relocate to the host location. The Home Leave Flight budget is allowed to be used as a Dependant Visit fund, but no separate Dependant Visit Flight Budget will be provided. Cost of Living Allowance initially provided for the actual family size transferred to the host location at the assignment start, however will be recalculated when the dependent family members are relocated. 18
All dependent family members who are planned to be transferred to host will be enrolled in the assignment Health Insurance policy from the assignment start. The financial value of the shipment limit will be increased. Actual value reviewed annually, in August. It is the Assignee s responsibility to notify the University if there is a change in the temporary split-family plans and arrangements, so the assignment compensation can be updated accordingly. 4.4. Family Status Changes The Assignee is required to inform the University upfront of any changes in family status during the international assignment: e.g. marriage, birth of a child, divorce, number of dependants present at host location etc. This is to ensure timely implementation of any necessary payroll updates as a change in family status might prompt a change in assignment allowances and benefits. 4.5. Absence While on Assignment Short term leaves, which are less than 4 working weeks, will be administered in line with the home country policy and the Assignee will continue to be paid their full assignment allowances. In case of long term leave, (due to e.g. sickness, maternity or sabbaticals), the payment of the base salary and benefits will follow the home country policies and payment practices. Dependent on the length and circumstances of the long term leave, and if the Assignee and their family is absent from the host location for longer than 2 months period, the University reserves the right to either modify the assignment allowances or to repatriate the Assignee to the home country. The Line Manager must be informed of any short term leave. In the case of long term absences the host Human Resources Manager and the International Human Resources Personnel should be involved too in order to clarify the potential impact of the extended leave on the assignment arrangements. 5 Pre-Assignment Preparation 5.1. Pre-Assignment Briefing The International Human Resources Personnel coordinating the end to end relocation will organise a pre-assignment briefing with the Assignee in order to explain the application of this policy, the individual Assignment Offer Letter, a detailed illustration of the Assignment Net Compensation and any host country specific assignment processes. Normally this initial meeting will take place 19
before acceptance, as it is intended to help the Assignee and accompanying family to understand in detail the assignment process and terms in order to make an informed decision of committing to a long term international assignment. 5.2. Assignment Acceptance The assignment offer is conditional upon written confirmation from the Assignee that they have read and understood this policy and the assignment process. After the pre-assignment briefing, by signing the Assignment Offer Letter the Assignee accepts the terms of the long term assignment. This is the point when external vendors and the internal stakeholders in the home and at the host location are engaged by the International Human Resources Personnel to start the assignment process. 5.3. Assignee Personal Data Statement As part of the University s measure to comply with personal data protection acts, the Assignee is required to sign the Assignee Personal Data Statement provided together with the Assignment Offer Letter. Failure to sign this document will stop the assignment process. 5.4. Passports As a valid passport is required to travel between countries and to obtain host country work permits / employment passes and visas, the offer of an international assignment is conditional on the Assignee and any accompanying family being eligible for renewable passports. If they do not currently hold a valid passport, they are expected to apply for one. Infants and children are required to have their own individual passports. Any existing passports damaged, torn or due to expire within 8 months after the assignment acceptance are required to be renewed immediately. This is because the above might prohibit host country visas being issued. As the renewal applications might take four weeks, it is important to file applications immediately. The cost of passport applications and renewals will be at the Assignee s expense. 5.5. Host Country Immigration Valid host country work permits, visas and immigration documents for the Assignee and the accompanying family members are prerequisite of the assignment and are expected to be in place at all times during the LTA. Upon acceptance of the assignment, the host country Human Resources team will inform the Assignee of the host country immigration process and will provide support obtaining any necessary work authorisation and residency documents. This may take up to 8-12 weeks, therefore the Assignee is expected to start the 20
process immediately. The University will cover the cost of the initial application cost of host visas, work permits, residency permits and visa photos for the Assignee and the eligible accompanying family members. Host immigration renewal costs are covered for the Assignee only. The Miscellaneous Relocation Allowance (MRA) is intended to contribute for the eligible accompanying dependent family members visa renewal expenses. Due to the temporary nature of the assignment, no assistance or financial support will be provided for the application or extension of permanent residency status at the host location. Host country immigration law may prevent the relocating spouse or partner from working. In this scenario the University will not offer support with the application or the cost of the spouse s/partner s employment pass. In some countries unmarried domestic partners or other dependants may not be eligible for host country immigration permissions to enable them to remain in the host location for the duration of the assignment. If this happens, the University will support the initial visa cost only, however any additional immigration costs will be at the Assignee s expense. The University will not provide immigration assistance for non-recognised or nontraditional dependants, other family members and domestic staff relocating to the host location or to any visiting family members. Immigration costs associated with these is the Assignee s responsibility. 5.6. Home Country Immigration If the Assignee is not a citizen of the employing home country, but holds a temporary or a permanent residency status there, then a home country immigration case assessment will be carried out to understand the impact of the Long Term Assignment on the existing home country immigration status. If home regulations permit, the University commits to maintain the home country work authorisation and residency permits. 5.7. Health Screening and Immunisations Immediately on acceptance of the assignment, in order to determine and ensure medical fitness for the assignment and possibly several months prior to departure, the University strongly recommends the Assignee and any accompanying family members to have a basic medical examination and to receive any recommended immunisations through the family s General Practitioner. Note, it may take time to complete the medically required immunisations, hence the advice to start the process as soon as possible. The cost associated with this support will be reimbursed by the University via normal expense reporting process. At those home locations where an Occupational Health Department is available, they will require the Assignee to complete a Fitness to Travel Assessment, prior 21
to the assignment start. In addition to the above basic health screening, the host country processes (e.g. immigration, teaching permit application etc.) might require the Assignee to attend further, more specific medical examinations, which will normally be carried out upon arrival at the host location by designated consultants as required by host regulations. 5.8. Medical Records The University strongly recommends the Assignee to obtain a copy of their own and their accompanying family members medical records in order to share it with their new doctor at the host location. It is sensible to carry these documents in the hand luggage instead of including them in the shipment. The Assignee shall consider to create electronic copies of these documents for their own records. 5.9. Insurance Briefings The University s Insurance Officer will initiate an insurance briefing as an initial introduction as well as to explain in detail the University s various insurance policies and cover in place while on assignment: Health Insurance, Travel Insurance, Employer s Liability / Workers Compensation, Professional Indemnity Insurance etc.) An additional briefing discussion, specific to the Health Insurance cover will be provided by the University s external insurance broker sourcing the LTA Health Insurance. The purpose of this discussion is to explain the assignment health insurance policy and related processes. The Assignee is required to attend both of these briefing meetings. 5.10. Tax Briefing and Consultation As part of the assignment preparation process the University will provide tax briefings through our designated external tax consultants. The briefings will not cover financial advice. The scope of the consultation is limited to assignment related tax matters only. Normally a separate meeting will be held by the home location and the host location tax consultants. Due to the complexity of assignment related host and home tax regulations, the Assignee is required to attend these meetings. These discussions will include, but not be limited to: Introduction to the external consultant s team and the scope of services they are engaged to provide A review of the University s tax equalization policy and the home and host tax processes Explain the Assignee s obligations and expected timelines for action in respect of home and host tax compliance 22
The completion of any departure or entry forms required by the home / host tax authorities An overview of the tax consequences arising from living abroad on other forms of income e.g. pensions, dividends, rental income etc. Note, if the Assignee s personal tax position is unusually complex and additional independent tax advice may be required, this will be on the Assignee s own cost, with no further University support. 5.11. Home Country Housing The University will not apply a housing norm deduction via payroll, which means that the Assignee is not required to contribute to the host housing cost. This is to ensure that the Assignee is able to retain the home housing for personal usage when on home leave visits. The University will not monitor if the Assignee actually did not retain the home country housing, as they have e.g. sold it, rented it out, or gave up a rental accommodation. If the Assignee chooses not to retain the home country property for personal usage, then they are wholly responsible for any costs of giving up or selling their home country residence, or for the payment of any home housing associated costs, including agency fees when renting the property out. It is the Assignee s responsibility to notify mortgage companies and insurers of the occupancy status of their property. 5.12. Home Country Schooling If the Assignee s children are in a fee-paying school prior to the assignment, it is the Assignee s responsibility to provide sufficient notice of withdrawal to the home country school. The University will not cover any penalty costs associated with late notice. 5.13. Home Country Cars Any costs associated with the sale or lease breaking of the home country cars are the responsibility of the Assignee. The University recognizes no responsibility for any car sale losses incurred. 5.14. Driving Licence In some countries the home country driving licence is not recognised and either an additional International Driving Permit (IDP) or a conversion to host local driving licence will be required. The International Human Resources Personnel will clarify host country driving licence requirements and the Assignee, if driving at host, is expected to obtain all necessary documents to meet host legislation. In case of host countries where the IDP is not a requirement in order to drive, the University still strongly recommends obtaining one, as it is an added 23