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Global Relocation Global Relocation Tips Immigration Rules Visas and International Travel

Switzerland Enforces Quotas on Category B Permits for Persons from Romania and Bulgaria

Switzerland enforces quotas on Category B Permits for persons from Romania and Bulgaria. This enforcement action is a result of the Federal Council’s decision to invoke a safeguard clause within the European Union’s Agreement on the Free Movement of Persons, which allows for restriction of movement to control migration. The quota enforcement began June 1, 2017 and will last for a period of twelve months. A total of 996 Category B Permits will be distributed on a quarterly basis. Category B Permits allow for five year residency.

Why Switzerland enforces quotas

Switzerland notes that Romanian and Bulgarian workers have been increasingly migrating for seasonal jobs in sectors with higher-than-average unemployment rates. The quota is one of the tools at the country’s disposal to control migration and mitigate adverse impacts.

What is the Switzerland quota?

Each quarter since June 1, 2017, the quota is 249 Category B Permits for workers from Romania and Bulgaria. With the quota enforcement, the number of Category B Permits has been exhausted each quarter. The third quarter, which started on December 1, has already exceeded its quota. The fourth quarter will release the last installment of 249 Category B Permits on March 1, 2018. Based on demand, the fourth quarter quota is expected to be reached only a few days after release.

Who does this impact?

  • Clients with transferees who are Romanian and Bulgarian citizens and who are planning to submit Category B Permit applications.
  • Clients who are planning to hire Romanian and Bulgarian citizens who are not currently in possession of a Switzerland work permit.

What does this mean for you?

Clients who have transferees planning to submit Category B Permit applications but who do not meet the quota limit may have other options such as Category L Permits, which are for short-term (one year) residency and are not subject to quotas. In any case, clients should ensure their transferees or new hires submit their Category B Permit applications as soon as possible at the start of each quarter.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams understand and prepare as Switzerland enforces quotas on Category B Permits, as well as other visa, work permit, and immigration issues.

Contact us online or give us a call at 800.617.1904 or 480.922.0700 today.

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Shanghai China: Changes to Applications for China Working Visas and Working Permits

The Shanghai Municipal Human Resources and Social Security Bureau has implemented several rule changes to the processes for obtaining China Working Visas and Work Permits. These changes should make the process easier and quicker for applicants.

Who Does This Affect?

  • Companies currently planning to send a transferee to China
  • Companies with transferring employees in the process of submitting applications for working visas and work permits

What are the Documents a Transferring Employee Needs to Have to Enter China?

A Working Visa is required to enter China for working purposes, and is valid for only 30 days. Upon entry, the Working Visa document must be replaced within 30 days by a Resident Permit, which allows foreigners to reside in China. A Resident Permit replaces the Working Visa on the transferring employee’s passport and allows them to remain in China legally, as well as travel abroad without any restrictions during their employment. A Foreigner’s Work Permit is a document that is delivered to the transferring employee after they have contacted and proceeded accordingly with the local Chinese authorities.

What are the Changes to the Process?

In April 2017, two previous types of Work Permits were combined into a single and unique Foreigner’s Work Permit. The Foreigner’s Work Permits are divided into three distinct categories: A, B, and C.

Foreigner’s Work Permit Categories

  • A: High-End Foreign Talents, professionals including scientists, science and technology leading talents, international entrepreneurs, special talents, and other foreign high-end talents urgently needed for economic and social development.
  • B: Foreign Professional Talents, in line with the Foreigners Employed in China Guide Catalog and the corresponding demands of economic and social development.
  • C: Other Foreigners, employed to meet the demand of the domestic labor market in line with the state policies and regulations.

The process changes work in tandem with China’s new Working Permits Points System, which allows applicants to apply online, a simple and quick process. In November 2017, further adjustments were made to the Working Permits Points System, along with a new segmentation of working areas in China.

What Does This Mean?

The new online application system should make the process simpler and easier for applicants to apply for China Working Visas and Work Permits. The Working Permits Points System is easy to understand and helps applicants quickly understand if they fall into one of the three distinct categories.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams determine the best plan and course of action on how to submit applications for China Working Visas and Work Permits. Global Mobility Solutions can also help you pursue additional options if the Working Permits Points System is not viable for a transferring employee. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment for China Working Visas and Work Permits

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Global Relocation Immigration Rules Visas and International Travel

United Kingdom Tier 2 General Visas for Migrants Exceed Monthly Quota in December

The United Kingdom Home Office’s Visa and Immigration Bureau reports that Tier 2 General Visas for Migrants exceed the December 1,500 monthly quota, refusing over 100 applications. Most of these applications are eligible for re-submission in January, but the January quota will remain at 1,500, and the February quota will be 1,000.

Who Does This Affect?

What is the Process to Submit a Tier 2 General Visa for Migrants?

Companies must submit an application for RCoS by the fifth of each month. Applicants receive admission by way of a panel of judges. Those applying for occupations that are short of qualified employees, and those applying for jobs at the PhD level are usually the first priority.

Remaining applications receive priority based on salary level, with higher salaries taking preference. However, if a salary bracket receives 100 or more applicants beyond the number of places, all applications are refused, and must be resubmitted the following month.

What are the Monthly Quotas?

Each annual quota is divided on a monthly basis, with higher figures set aside for months with the highest demand. If there are months where a balance remains, it rolls over and adds to the next month. Currently, the monthly quotas are as follows:

  • March: 2,200
  • April through August: 2,000
  • September through January: 1,500
  • February: 1,000

What Does This Mean?

Since the majority of December rejected applications will be re-submitted in January, there is a strong possibility that the applications will exceed January’s quota as well. Employers should plan accordingly, noting that transferees may not be able to accept relocation assignments in the United Kingdom until a later date.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams determine the best plan and course of action on how to submit applications for RCoS in a timely manner, and how to respond if quota limits impact their relocation plans. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Global Relocation Immigration Rules

Online Portal Form C Checkout is Mandatory in India for Landlords of Privately Owned Residences

The Ministry of Home Affairs in India, through the Bureau of Immigration and the Local Foreigners Regional Registration Offices, is requiring landlords of privately owned residences to update the departure or checkout dates for foreign national guests and tenants via the Online Portal Form C.

What is the New Requirement regarding Online Portal Form C Checkout?

Currently, only hotels, guest houses, and serviced apartments have been required to report the departure or checkout of foreign national guests and tenants. The procedure is to enter the information into the Online Portal Form C, managed by the Bureau of Immigration.

The new requirement is that the landlords of privately owned residences must also now report the departure or checkout of foreign national guests and tenants, using the same Online Portal Form C. This affects all transferees and their family members residing in India staying in hotels, guest houses, rented properties, or privately owned residences.

What Does This Mean?

For transferees changing residences or leaving India that have been residing at privately owned residences, clients should ensure that their landlord completes the departure or checkout information using the Online Portal Form C as required.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams communicate this new requirement and its impact on transferees and their family members residing in India. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Global Relocation Immigration Rules Visas and International Travel

Changes to the United Kingdom Immigration Rules

Employers with transferees in the United Kingdom should be aware that the Home Office published a Statement of Changes to the United Kingdom Immigration Rules on December 7, 2017. These changes might impact transferees and their family members in several ways. Most of the changes are scheduled to take effect starting on January 11, 2018.

What are the Changes to the United Kingdom Immigration Rules?

  1. Currently, Tier 4 General visa students must pass their courses before they are eligible to apply for a Tier 2 General visa. Starting on January 11, 2018, Tier 4 students will be able to pursue a Tier 2 General visa application immediately after they complete their studies.
  1. The rules regarding the relationships for partners of points-based system (PBS) migrants are changing to reflect similar wording used in the rules for spouses and settled migrants, at the time a dependent application is submitted. The wording on relationships is changing from “subsisting” to “genuine and subsisting” and may require evidence of co-habitation as is currently the case for the spousal rule.
  1. A new restriction limiting absences to 180 days per year for partners of Tier 2 General visa and other PBS migrants will apply to all new applications starting on January 11, 2018. Prior to this rule change, a dependent spouse of a Tier 2 General visa holder could spend most of their time outside of the country and still receive indefinite leave to remain in line with their partner.
  1. Currently, entry clearances are attached to a page in an applicant’s passport, also known as a visa. The rules are changing to allow an electronic version to be issued in place of the passport entry. This new electronic format is undergoing testing in a few locations prior to a full implementation.
  1. The total number of Tier 1 Exceptional Talent visas will double in number, from 1,000 to 2,000. These are allocated to the Designated Bodies, which in turn assign them to candidates they believe to be exceptionally talented in their respective fields. Additionally, expedited settlement will be made available to these Exceptional Talent migrants after three years, provided they meet all applicable criteria.
  1. The rules regarding Tier 1 Entrepreneur visa applications are changing to prevent funds or investments used by one applicant from being used by other applicants. This will prevent multiple Tier 1 Entrepreneur applicants from relying on the same funds to enter the United Kingdom. Also, a rule is being clarified to confirm that buying a business from a previous owner does not constitute a qualifying investment for Tier 1 Entrepreneur applicants.

What Does This Mean?

Employers should communicate these broad changes to the United Kingdom immigration rules immediately to transferees and their families. Those who might be impacted should receive guidance on appropriate actions to take regarding their specific circumstance.

Conclusion

Global Mobility Solutions’ team of global relocation experts can provide guidance and help HR teams communicate and understand the impact of these changes to United Kingdom immigration rules. Global Mobility Solutions can support your company, your transferees and their family members, and we can also help determine the best solution for their specific requirements. Contact us online or give us a call at 800.617.1904 or 480.922.0700 today.

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Global Relocation

Setting up a Multi-Currency Account for Transferees at Banks in China

U.S. employers with transferees in China should ensure their employees are setting up a multi-currency account at local banks. A multi-currency account is required for quick and easy access to funds in the local currency. Transferees who do not have a multi-currency account face a number of issues including excessive currency conversions, higher fees, and delayed access to funds.

What is the Currency Conversion Issue?

Currently, transferees with ongoing allowances and expense reimbursements are paid with funds sent by our finance team in the local currency, Chinese Yuan Renminbi (CNY). Local banks in China are then converting these funds back into U.S. Dollars (USD) prior to depositing the funds into the transferee’s local account. These local banks in China convert the currency on their own initiative, and our team cannot control or change the local bank’s process. In order for transferees to access these funds for use, they must pay a fee to have USD converted back into CNY. The excessive currency conversions result in higher fees to the transferee, thereby reducing their funds and delaying immediate access.

What does this mean for you?

There are a few solutions that may resolve the currency conversion issue and reduce the excess bank fees. Our global relocation experts recommend that clients discuss the importance of setting up a multi-currency account with their transferees.

The steps to set up a multi-currency account are:

  1. The transferee must set up their account as a multi-currency account at their local bank in China.
  2. The transferee must complete the necessary documentation with their local bank to claim funds in the local currency, CNY.
  3. Once both of these steps have been completed by the transferee at their local bank in China, the transferee must send confirmation to our finance team in order to have the information recorded in their file.

However, even if all of these steps are followed, a few local banks in China may still perform the currency conversion. If this continues to be an issue for the transferee, another solution is to set up local payments with our Asia-Pacific (APAC) regional office.

Conclusion

Global Mobility Solutions’ team of global relocation experts provides guidance and can help HR teams communicate the importance for transferees of setting up a multi-currency account at banks in China. Contact us online or give us a call at 800.617.1904 or 480.922.0700 today.

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Top 5 Reasons for Expedited Bidding

What is Expedited Bidding?

The Expedited Bidding Process (EBP) is not an abbreviated approach. It is a request for proposal (RFP) that, like a traditional RFP, demands complete and detailed answers from relocation management companies (RMC). However, through expedited bidding, a company’s purchasing department only sends RFPs to a small, select group of key RMCs.

The trend in utilizing an EBP for the outsourcing of relocation management is at an all-time high. Global Mobility Solutions consulting team’s recent study shows that EBP utilization is up more than 200% over the last year. Why are so many companies turning to expedited bidding when looking for a mobility management solution?

Buying Solutions, Not Widgets
Purchasing relocation management is not like sourcing for parts. Ensuring the right fit for the right reasons is key when purchasing employee-facing services.

Courtesy Mobility Consulting
Policy reviews, recommendations, program design, and policy development can be part of the process. This allows for an evaluation of the RMC experience, knowledge, and quality of consulting work.

Immediate Cost Savings
Competition often equates to implicit cost savings through no fee implementation, less administrative burden and time investment, improved fee structures, and reduced direct costs.

Quicker Program Implementation
90% of EBP implementations are completed within 22 days, allowing for immediate efficiencies and realized savings.

Full RFP Avoidance
Eliminates the administrative burden for the purchasing department and reduces the need for extensive resources when compared to a formal Request for Proposal method.

Modern Mobility Made Easy™

What this means for you and your relocating employees

The Global Mobility Solutions benchmarking study shows that companies utilizing an expedited bidding process achieve savings up to 61% over typical RFP costs. Expedited bidding is one of many ways that Global Mobility Solutions recommends to make choosing an RMC fast, easy, and cost-effective. Before you send your next RFP, Download the 28 Critical Questions to ask an RMC. For more information on EBPs, and to learn more about Global Mobility Solutions’ corporate relocation programs, contact us online or give us a call at 800.617.1904 today.

Download the 28 Critical Questions to ask an RMC when submitting an RFP

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5 Easy Steps for Year-End Relocation Expense Reporting

While most people are busy preparing for the holidays, you’re scrambling through the year-end reconciliation of your relocation expense data. Well, even though it’s only November, here is a gift that will help you navigate your year-end process this year and for years to come.

Though many relocation managers might prefer holiday gift shopping to year-end reporting, the process tends to go more smoothly when run by the relocation department. To maximize efficiency, be sure to follow these five steps:

1. Checklist

Create a year-end checklist. A detailed checklist will identify the information you need to accurately report year-end compensation. Your checklist should include due dates, responsible individuals, and departments. Establishing the responsibility for reporting relevant compensation data is critical and may include several components such as wages, imputed income, benefits, equity, and taxes. This year-end checklist will help you identify all the resources you need to create a complete and accurate report. Your itemized checklist should include items such as early cutoff dates, all employees who will receive the tax filing services (employees on the tax eligibility list), and provide for the time needed for verification, approval, and processing. A well-developed checklist will also set firm deadlines for reporting and tax filings.

2. Preparation Call

Set up a year-end preparation call. When setting due dates, remember the mandatory vacation times required by some countries toward the end of December. During the call, review your year-end checklist with all involved parties to ensure they are aware of their role and deadlines. Use this call as an opportunity to build understanding and develop relationships that will make year-end reporting easier in the future. If you have not already held a year-end preparation call, schedule one as soon as you finish reading the rest of this article!

3. Verify Data

Verify all of your data. Accuracy is vital, especially for compensation reporting. Data such as addresses and tax ID numbers/Social Security numbers should be confirmed, as well as wages, benefits, sick days, and vacation time. Verifying relocation expense data eliminates backtracking and costly errors.

4. Finalize Data

Finalize your relocation expense data. Make sure that the final payroll reports of the year have been included, plus any end-of-the-year benefits. Be sure to back up the program data again and save it in a secure location for easy future reference.

5. Submit Report

Get ready to submit your report. Double-check the deadlines for all the countries on your list and be prepared to provide specific data for each country. Tax providers may ask for data for different assignee/transferee populations. Be sure to adhere to your year-end deadlines and, whenever possible, send the data ahead of time. Some international locations may have very tight turnaround times to make that final tax payment of the year.

Modern Mobility Made Easy™

What this means for you and your relocating employees

As with anything, practice makes perfect. The more you follow these five steps, the easier your year-end reporting will become. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who can help you quickly implement relocation policies custom-tailored for your needs, as well as expense reporting to make your year-end reconciliation easier. Request a professional audit of your year-end process.

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Top 3 Considerations When Implementing Relocation

Keys to working smarter, faster, and more cost-effectively

HR, Recruitment, Payroll, Accounts Payable, IT Security, and other relocation stakeholders commonly face a never-ending variety of evolving and often overwhelming challenges when it comes to the implementation of benefits administration, which includes relocation outsourcing decisions.

As employee benefits become more complex, critical, and increasingly subject to regulatory compliance requirements, employers must accurately assess their team’s capacity when it comes to implementing relocation programs.

Global Mobility Solutions (GMS) recently compiled the data on thirty four (34) recent implementations it managed, representing key industries and includes several multinational companies (including and not limited to manufacturing, technology, healthcare, and energy). This study was derived from initial and post-implementation surveys that are focused on implementation Critical Success Factors (CSF).

Top 3 Critical Success Factors

  1. Implementation Management
    Assessing an organization’s goals and creating a realistic road map of key milestones is a critical part of delivering an effective implementation. The process begins by identifying the right mix of internal/external resources and flexible technology that support a collaborative approach to implementation that stays on track. This study confirms that proper planning and management is an essential to any successful relocation implementation.
  2. Cycle Times
    All organizations, large and small, have finite resources, making the maximization of productivity and cycle times a CSF. Properly planned and executed implementations reduce typical and customary cycle times.
  3. Time Investment = Real Dollars
    The old adage of “time is money” has a direct association to relocation program implementation. This is evident by the time investment required to complete implementation by multiple disciplines within an organization, such as Human Resources, Payroll, Accounts Payable, preferred vendors and the RMC.

Modern Mobility Made Easy™
What this means for you and your relocating employees
Our findings conclude that organizations with solid implementation oversight and supporting technology experience shorter cycle times, spend less and have a better overall experience. Global Mobility Solutions, a leader in corporate relocation since 1987, provides companies like yours with proven leadership, time tested procedures and advanced technology to ensure that no more than 10% of their time is spent on implementing a relocation management program. GMS completes new implementations within 5 to 22 days, while maintaining 98% planning accuracy and 100% implementation satisfaction. To learn how to quickly and easily implement your relocation program, all within your planned budget, by requesting an implementation demo.

Request a relocation implementation demo from Global Mobility Solutions

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Relocation Models for 5 Major Industries

Traditional vs. Lump Sum Relocation Programs

Which is best model for your company?

There is more than one way to get your relocating employees to their new assignments. Many companies opt for either a traditional relocation program, a lump sum/managed cap program, or a combination of the two, depending on the position of the transferee and other special circumstances.

What are the Differences?

With a lump sum or managed cap model, relocating employees are given a pre-determined amount of money to cover all aspects of their move. From the shipping of goods to temporary housing, the transferees are responsible for researching and obtaining all the services needed to get them to their new destinations. There is no tracking or reporting available to HR or finance departments to let them know whether their relocation policies are too generous, costing the company more money than necessary to relocate their employees, or too limited, forcing transferees to pay out of pocket unnecessarily. This approach leaves the entire move is managed by the transferees, many who might not have any prior moving experience.

Conversely, a traditional relocation model is managed by a relocation management company (RMC). The RMC coordinates everything for the transferees. This includes, but is not limited to, home selling, household goods movement, temporary living, and home purchasing. The RMC sets up the various services with reputable, vetted network partners. Since the RMCs use direct billing back to the client companies, the transferees rarely have to open their wallets. HR and finance departments receive detailed expense reports from the RMCs that capture all the costs related to relocating their transferees.

Based on comprehensive relocation surveys, here are findings of how companies in five different industries utilize either traditional, managed cap/lump sum, or a combination of these relocation programs:

Relocation Models by Industry: Energy, Healthcare/Medical, Manufacturing, Retail, Technology

The figures above illustrate that across all the industries in this survey, traditional relocation programs are used more frequently than lump sum or managed cap programs. However, in all the industries, there is a large percentage of companies that utilize a combined approach. A best practice consideration is to adopt a combination of traditional and managed cap relocation models.

Modern Mobility Made Easy™
Helping you manage your relocating employees

Global Mobility Solutions, an innovative leader in corporate relocations since 1987, can analyze and create mobility management programs customized for your unique needs. Additionally, we have compiled benchmarking studies and relocation best practices for numerous industries. To learn more about what type of relocation model would fit best with your company, get the full relocation benchmarking study for your specific industry:

Download your industry benchmarking study

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