Expatriation or Local Contract?
24 March, 2017duguech
The management of projects in different countries and the contractual figure under which they are transferred to employees is changing. The optimization of technical, human and, above all, economic resources has tilted the balance towards the local hiring of workers, rather than opting for expatriation, an alternative that until a few years ago was the preferred option.
The expatriate is transferred to another country with a contract made by the company of origin, who must know the administrative and regulatory practice of each country, in order to carry out the legality of the whole process of preparation of the trip that includes: calculation of costs, wages and taxes, modification of data in the social security system and security in the country of destination. This aside from the expenses associated with travel, installation and maintenance that you must assume.
This type of foreign worker has become the one of a located employee; a highly qualified profile that moves to provide services for a long period of time and works with a contract made by the company of the country of origin. The location of workers varies from expatriation in the following aspects:
- The displacement usually implies the dismissal of the worker at the place of origin.
- The working and economic conditions of the employee are usually adjusted to the profile of the employee in the country of destination.
- The social benefits of the foreign worker are in accordance with the local regime of the country to which they will be transferred.
The trend in resource management and in the management of international projects has changed in order to be more effective and cost-saving. And although the contracting is carried out by the company in the country of destination, it is vital to standardize the transfer process and have an International Mobility Program.
This information is not in any way legal advice, serving only as an informative purpose. If you need professional services in the area of Global immigration and Mobility, please contact our firm.
*It should be noted that the rules of any of the countries listed and the procedures suggested might change at any time without notice.