Global Mobility compliance
Moving to a new location, especially if it’s a new country, requires thorough attention to many details, requirements, and procedures to both the company and the employee – from the receipt of visa payments to tax returns. There are various areas to be concerned with and the current global situation makes things even harder and less stable.
In a constantly changing regulatory environment identifying and preparing for new and emerging compliance measures takes a long time and has a great impact on employee’s mobility in the short or long term. COVID-19 restrictions did not make it easier in 2020.
The challenge of compliance
Compliance is multifaceted and includes the following:
- Policy. Clients have different policies for different move types to ensure that all employees are treated equally and fairly, and costs are managed.
- Immigration. For employees to be able to work in or reside in a different country, they need to ensure that they have the correct visa/permit, etc. to be compliant. This can be managed internally by the client HR or by a third party partner. The more people involved, the more there is a human error risk factor. Moreover, if compliance is not confirmed but the relocation process has been initiated, there might be a failure that can impact both the company and employee. The company may even lose their right to bring foreign employees in for a while.
- Taxes. Usually, taxes are managed through client HR/Payroll. It is important to ensure that both the company and the employee are compliant with their tax responsibilities in the host location. The failure to do so could result in huge fines for the employer and reputation damage. Failure could also impact the employee resulting in fines and even conviction for tax evasion.
- Partners. There is inherent risk working with 3rd party partners in the delivery of service to a company’s employees. Companies have to ensure that all their corporate rulings and responsibilities are being followed at every step of their supply chain. These are typically outlined in a contracts’ T&C’s and cover items like PII, GDPR, Anti-Corruption, Anti Slavery, No Child or Slave Labour, No Funding Terrorist or Criminal Organizations, etc.
Our platform is aimed to streamline the process of moving and keep all the employee’s data under one ecosystem. It minimizes, if not to say excludes, the possibility of human error and makes the whole process of relocation easier and faster. With the previously outlined concerns, we showcase here how exactly we can help with compliance:
- Policy. As the policy is loaded through implementation, it ensures that all moves are kept compliant with policy.
- Immigration. Our product makes sure that all data is stored in one place and shared with the relative parties in the process so things move along smoothly and compliantly, for example, permanent residence status, HHG shipments passing through customs, and the right to work.
- Taxes. Our product offers compliance monitoring to ensure that employees are not out of their country of residence too long, as this can impact tax rulings. This information can be shared with the client and they can manage their tax responsibilities with their tax provider.
- Partner. Clearmove pre-vets all partners and ensures that they meet all levels of compliance and therefore mitigate risk through the Supply Chain.
There will be frequent changes and complications for the time being for Global Mobility, particularly regarding compliance. This is where having automated software will be vital, to help reduce risk.
By keeping on top of all important information, Clearmove ensures that everything is managed professionally, legally, and in a way to guarantee that everyone in the process is satisfied. For more details please contact our professionals.