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How to manage international assignments

Author: Guy Abbiss and Bina Gayadien

Summary

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  • Put in place a robust international assignment policy.
  • Ensure that consideration is given to compensation and benefit issues, including pension contributions, bonus plans and share schemes.
  • Give due consideration to tax issues such as whether or not "tax equalisation" should apply.
  • Consider whether or not the employee requires a work permit or some other permission to work in the host country.
  • Be aware of rules and agreements relating to the payment of social security contributions both in the UK and the host country.
  • Draw up a letter of assignment, giving consideration to how its terms will interact with those of the employee's existing contract of employment.
  • Ensure that an effective tracking system is in place to monitor employees assigned abroad.
  • Ensure that the letter of assignment deals with the employee's return to the UK at the end of the assignment.
  • Be aware of the corporate issues that may need to be taken into account.