International mobility

Strategy & Change  |  Flexible working  |  Reward  |  Risk and compliance

Workforces have become more and more mobile, as today’s global marketplace sees employees travel more frequently between locations and employers seek foreign talent to boost local needs. With international mobility in play, organizations need to navigate the respective immigration and employment laws at various levels, while managing employee expectations when it comes to remuneration, social security, pension and tax contributions.

Immigration  |  Labor Law  |  Payroll  |  Social security & pensions  |  Tax

In today’s global marketplace, opportunities for your organization can present themselves at any number of different locations. To fully grasp these opportunities, organizations are increasingly recruiting qualified people from abroad and moving their existing employees between countries.

As a result, employees often find themselves working in another country or travelling between their home base and the location of their current assignment. Many organizations also call upon foreign talent to cover local sourcing needs.

Managing such a global workforce can be challenging and requires constant observation and understanding of the various complex and continuously evolving immigration laws and practices. 

Employment law can come across as a true legal maze. As the rules are issued on different levels - not only international, federal and regional levels, but also on sector and company levels - it is often challenging to keep track of all changes. Employment in an international context adds additional complexity to this already challenging environment.

Employee remuneration is typically a mix of compensation in cash and in kind. However, it’s often unclear whether, when, or how compensation and allowances are subject to payroll tax and social security contributions. The rules governing this field are complex and encompass numerous special arrangements in areas such as pensions, stock option plans and employee savings plans.

A crystal-clear employment package is essential for both employee and employer. Achieving that clarity largely depends on properly accounting for payroll tax and social security contributions.

With workforces that are rapidly changing, increased remote work and international assignments over the course of an employee’s career, it can be a complex challenge to ensure that (statutory) pension and social security benefits are kept in line with the employer’s and employee’s expectations, taking into account the latest changes in legislation and working arrangements.

Employment across national borders can be very complicated. Work from anywhere, Brexit, government subsidies and reliefs have increased that complexity even more. Mitigating tax risks, tax compliance, reducing tax costs can be challenging. International tax planning, qualitative tax policies and tax processes are often a must for organizations seeking to successfully address these challenges.