on March
23rd, 2016
From: Ned Help
To: Carrie Counselor
Subject: Offer Letters for Employees Working Abroad
Carrie:
Although
I’ve been writing offer and assignment letters for more than 15 years, I’m
curious as to what are today’s best practices for preparing these documents as
our company extends its global reach.
Specifically, what are the critical
components these letters need to address for employees who will be working
abroad in places like Latin America, Northern Africa, and the Middle
East? As a company entering markets in the developing part of the
world, we are increasingly sending our employees into unstable areas, and we do
not have any special policies implemented for these situations. What are other
companies doing to address employees in these situations?
Thanks,
Ned
From: Carrie Counselor
To: Ned Help
Subject: Offer Letters for Employees Working Abroad
Ned:
Do not
worry: you are not the only employer wondering about this issue.
Companies that send employees into places like the Middle East, Northern
Africa, and parts of Latin America often fail to consider the unique risks
their employees will face, including threats to physical safety. Because
it is so easily taken for granted domestically, an employee’s safety frequently
goes unmentioned in offer letters and employee handbooks. However, this
is an important matter for HR and Mobility teams to address, so I am glad that
you are raising this important topic.
Below please
find tips and strategies for your company starting at the very beginning of the
employee relationship – the offer letter. If you are dealing with an existing
employee being transferred abroad, this is commonly called an assignment
letter. Either way, our recommendations are
the same.
·
Be honest. First and foremost,
employers should be upfront about a job’s responsibilities. Even when an
offer/assignment letter outlines the travel or placement abroad, there is no
advantage in surprising an employee after the start of the assignment about the
safety concerns of an assignment location.
·
Identify the length of the placement. Employees
may be based abroad for a definite term, say, 24 months, or until a task has
been accomplished, or indefinitely. Depending upon the length of placement, the
offer/assignment letter should be very specific about whose responsibility it
will be to obtain and renew all necessary visa documents. This is
especially important in countries where the immigration systems are not
developed or where there is uncertainty with adjudication standards.
·
Consider responsibility for securing and reimbursing
for housing. Employees should be told whose responsibility it will be to secure
safe housing and employers should precisely outline which housing expenses (and
other expenses like airfare for return trips home) will be reimbursed.
You may wish to offer a housing stipend, but you should include
parameters for suitable areas for the employee to reside while on assignment,
as not to create additional risk. You might also consider securing
convenient housing in advance of the employee’s arrival, or offer to pay for a
local realtor or other search firm to assist the employee. Finally, your
offer letter should address whether and to what extent the employee will be
required to pay you back on certain stipends or other amounts you provided to
the employee should the employee quit before the end of the assignment.
·
Obtain sufficient insurance coverage. Along
with housing, this is employees’ greatest concern. Depending upon the country,
employers may purchase health and disability insurance coverage that covers an
employee abroad. You should consult with your current insurance provider
about products they offer for international coverage, such as traveler’s
insurance that can insure the employee’s belongings, emergency medical
evacuation, etc.
·
Advise on cultural and legal issues. Although
an offer/assignment letter cannot fully detail any culture’s norms, it should
advise prospective employees to investigate the society, and the letter should
always remind employees they will be subject to another country’s laws while
abroad. For example, employees – especially women – placed in Muslim countries
or the People’s Republic of China should be advised of cultural norms and
expectations. You may want to offer language or cultural training to the
employee, and if you are relocating multiple employees, a diversity consultant
can be extremely valuable.
·
Identify specific local threats. If
known, employers should advise employees about on-the-ground conditions,
including unsafe neighborhoods, gang or war activity, and how to deal with
local police, if any. I suggest that you check the U.S. State
Department’s relevant Country Alerts and Warnings for current baseline
information here: (https://travel.state.gov/content/passports/en/alertswarnings).
Ned, this is
just a starting point. I will also send you a follow-up email that
provides some additional resources you can provide your employees on
international assignments. In the meantime, please review the above with
your team and be in touch with any further questions. If you’d like, send
over a copy of your current template letters and we will review them for any
changes. It’s going to be critical for the company to get this
right. I wish more clients were taking this so seriously!
Sincerely,
Carrie Counselor
Carrie Counselor
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