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Germany Implements ICT Directive

Will you or your transferees be affected?

What has changed?

Effective immediately, Germany Implements ICT Directive – the German parliament has implemented an ICT Directive which intends to regulate the conditions for entry and residence of thirty-country nationals within the intra-company transfer (ICT) process.

Who is affected?

  • Employees working at the same group of companies for at least six (6) months being sent to Germany on an intra-company transfer
  • Employees working at the same group of companies for less than six (6) months intending to be sent to Germany on an intra-company transfer
  • Clients transferring employees to the same group of companies from another EU country to Germany

What to expect

The ICT Directive provides two different categories: firstly, third-country nationals who want to enter Germany directly from their home country (third-country); secondly, third-country nationals who already hold an ICT residence permit in another European Union (EU) Member State and are transferred to Germany for short or long-term transfer within the same group of companies.

The law divides it as follows:

1) ICT card for intra-company transferred workers (third-country nationals) must fulfill the following requirements:

  • Transfer must take place within the same company group
  • The employee must be either a leader (e.g. manager with leading function) or a specialist
  • Employee must have been with the company for at least six (6) months
  • The transfer must be for more than ninety (90) days, but cannot exceed three (3) years
  • An approval from the Federal Employment Agency must be obtained in advance
  • For the duration of the transfer, the assignee must have a valid assignment contract with his/her home employer and return to the home entity after the transfer
  • The remuneration (salary and monetary benefits) and working conditions (working time, leave, wage advancement in case of illness, etc.) must be comparable with a local employee

2a) Short-term mobility for intra-company workers (third-country nationals) must fulfill the following requirements:

  • Application in Germany up to ninety (90) days within 180 days
  • The assignee has a valid residence permit issued by another EU Member State pursuant to the ICT Directive
  • Proof that the domestic branch office belongs to the same company/group
  • Must have a valid passport
  • Confirmation on the entitlement to enter and residence for the purpose of intra-company transfer issued by the Federal Office for Migration and Refugees (Bundesamt für Migration und Flüchtlinge BAMF)

2b) Mobile ICT Card must fulfill the following requirements:

  • Transfer must take place within the same company/company group
  • The assignee must either be a leader (e.g. manager with a leading function) or a specialist
  • The assignee has a valid residence permit issued by another EU Member State according to the ICT Directive
  • The transfer is for more than ninety (90) days
  • An approval from the Federal Employment Agency must be obtained in advance
  • For the duration of the transfer, the assignee must have a valid assignment contract with his/her home employer and return to the home entity after the transfer
  • The remuneration (salary and monetary benefits) and working conditions (working time, leave, wage advancement in case of illness, etc.) must be comparable with a local employee

If the application was submitted at least twenty (20) days before the start date of the assignment and the assignment has already been submitted to the authorities of the other EU Member State on the first application, the stay and assignment in Germany will be allowed for a period of up to ninety (90) days before the decision was made by the German authorities.

Please note there will be a period of transition as Germany Implements ICT Directive and the authorities will need some time to get use to the new process. We anticipate having more details on the practical implementation and application procedures to share with you in the near future.

 

Modern Mobility Made Easy™

Planning ahead

To learn more about Germany Implements ICT Directive or any other issues that affect you or your mobile employees, be sure to speak with one of the Global Consultants at Global Mobility Solutions. From pre-decision to visa and immigration to language and cultural training, GMS has the award-winning programs and innovative technology to make relocating your employees and tracking their expenses simple and worry-free.

Request your complimentary Visa Program Assessment

Provided by Global Mobility Solutions network partner Emigra World News

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Global Mobility Global Relocation Global Relocation Trends

Top 5 European Relocation Destinations

Which countries are attracting the most transferees?

While the United States is still the world’s top destination for relocation, there are still many companies relocating employees to work in Europe. A recent study of large corporations, that included the data of over 160,000 relocations covering 150 countries, revealed the Top 5 European Relocation Destinations for relocation.

London-England-White-Tag

#1 – United Kingdom
It is no surprise that the UK tops the list again. It’s long presence as a world financial center and home to headquarters of many large global companies makes the UK the leader in importing assignees and new hires. The fact that it is an English-speaking country allows for an easy transition for transferees from most countries. Cities like Bristol, Cardiff, Edinburgh, and London are top destinations for relocation assignments.

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#2 – Switzerland
Switzerland has one of the highest standards of living in the world. Home to the headquarters of many Fortune 500 corporations like Zurich Insurance, Novartis, UBS AG, and, of course, Nestle, this small nation is big on jobs. The four official languages of Switzerland are French, German, Italian, and Romansh. However, some say the fifth, though unofficial, language is English, Transferees on assignment from the United States should have no problem conversing and conducting business in Switzerland.

Amsterdam-Netherlands-White-Tag

#3 – Netherlands
The Netherlands has one of the lowest rates of unemployment in Europe, and when combined with the 30 percent tax-free allowance available to people moving to work in the Netherlands, makes the country an attractive work destination. There is little to no culture shock when moving to the Netherlands from another Western country. Almost everyone is tolerant of non-Dutch speakers and has been taught to speak English from a young age. They also have an inclusive culture that isn’t materialistic, in which employers, employees and people of all ages socialize.

Berlin-Germany-White-Tag

#4 – Germany
Germany’s job market is strong and the country’s working conditions are very good. The much-prized apprenticeship program has helped keep youth unemployment down. In contrast to many other countries, vocational education is properly valued in Germany and manual professions are considered equally prestigious as desk jobs. Germany is well-structured country with specific rules which makes living and working very organized. However, life is not all toil in the country. Germans know how to have fun, too. The country boasts an excellent work-life balance. Currently, Dresden has outpaced Berlin as the hot real estate location.

Dublin-Ireland-White-Tag

#5 – Ireland
Ireland is leading the tech boom in Europe. Practically all of the biggest tech and pharma companies in the world, including Google, Facebook, Apple, and Twitter, have their European HQs in Ireland. People in Ireland take their vacations seriously. It is customary for companies to offer 20 days of annual leave and they really want employees to use them. Housing is available for any budget. Those coming from the United States will feel very little culture shock as the people in Ireland are extremely accommodating and speak English. This beautiful country boasts great festivals, manic sports fans, and world-class educational institutions. Dublin is rapidly becoming a strong economic center, not only for Europe, but for the world.

Modern Mobility Made Easy™

What this means for you and your mobile workforce

If you plan on sending talent or importing talent to or from any of these Top 5 European Relocation Destinations, you will want to ensure that they are properly prepared. Global destinations spotlights offered by Global Mobility Solutions highlight the city information your transferees will need to know about their assignment locations. These guides will brief them on the city’s cost of living, arts and entertainment, visas and permits, schools, and other information necessary to adapt and be successful in their new country.

View the Global Mobility Solutions global spotlights now!

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Domestic Relocation Global Mobility Global Relocation Relocation Best Practices Relocation Management

Global Mobility Solutions Recognized as a Leader

Leader Recognition – For the past 34 years, the LEAD Awards have identified and recognized organizations with the top leadership programs, strategies, and solutions with regard to global leadership development. These prestigious leadership awards salute the world’s top leadership practitioners and programs and highlight their roles in developing their most important asset – their people.

Global Mobility Solutions (GMS) was recognized as a leader for its excellence in leadership training and education. GMS placed in the top 10 of 100 companies for Best Sales Leadership Program and Top 18 of 200 for the Best Global Leadership Program.

 

Global Mobility Solutions a winner of Best Sales Leadership Program

Global Mobility Solutions a winner of Best Global Leadership Program

 

The competition was strong as GMS went up against such household names as 3M, Boston Scientific, Cisco, Dell, Microsoft, and many others. In fact, the other winners have a combined average annual revenue 453% larger than GMS and an average of 383% more employees. It is an honor and accomplishment to be recognized amongst such giants of industry.

 

Learn how GMS can help your transferees become leaders in their new destinations

Is your relocation program the best it can be? Receive your free relocation policy review.

 

About LEAD2017 LEAD2017 is a 2-day leadership forum, February 7th and 8th, 2017 in Nashville, Tennessee, at the Music City Center. Designed to inspire leadership in people from all walks of life in person at the conference as well as live simulcast to hundreds of remote host sites internationally. The event brings together top thought leaders and the world’s best leadership practices that can be shared by attendees to develop leadership programs in their own organizations and communities http://www.lead2017.com/ February 8th will be broadcasted globally with the goal of touching 1 million lives to choose leadership.

About HR.com and the LEAD Awards HR.com, the largest global social networking and resource site for HR Professionals is committed to providing a deeper understanding of the HR function for over 290,000+ members by offering an annual global leadership annual event – LEAD, the LEAD Awards, HR Certification Exam Prep Courses, certification programs, a personal development app, monthly themed HR e-publications, 4,500+ webcasts, 1,200+ eLearning credits, 230+ virtual conferences, blogs, community networks, industry news and advisory boards. See www.hr.com for more information.

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Corporate Relocation Global Mobility Global Relocation Global Relocation Challenges

Increase the Success of Global Assignments with Language Training

Global Assignment Success – Moving top talent from one location to another has many hurdles. Global relocation has its own set of unique challenges. Of them, overcoming language and cultural differences are two of the most important. Without an understanding of how to properly communicate with business contacts in a host country, your transferees will not be able to accomplish anything positive and will not be effective ambassadors of your company. Austrian-British philosopher, Ludwig Wittgenstein explained, “The limits of my language means the limits of my world.”

To overcome these obstacles and have global assignment success, companies with global reach enroll their transferees in cultural and language classes. By having talent properly prepared, companies understand that their transferees will be able to immediately communicate with contacts upon arriving in their host countries. This has been proven to reduce limitations for transferees and increase the success of global assignments.

Individualized instruction can range from a self-paced, online class to live, instructor-led, virtual session. Not only can the employee take the course, but the whole family can engage in the training. Group lesson for employees are typically offered on site at a company’s facility or a physical location of the company’s choosing.

Companies value metrics and want to see their employee’s progress. Many programs have trainers who track the student’s progress at regular intervals and report it back to the company. Cultural and language training providers benchmark progress to internationally recognized assessment scales, such as the Common European Framework of Reference (CEFR) scale. Instructors are trained to administer assessments on the four major language skills: reading, writing, listening and speaking. Evaluations are also a key component to our philosophy of continuous improvement.

As a leader in the corporate relocation industry, Global Mobility Solutions (GMS) offers an array of cultural and language training options. To learn about how GMS can prepare your global transferees for success, please read our PDF.

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Corporate Relocation Domestic Relocation Global Relocation

Employee Relocation or Workforce Mobility?

Workforce mobility or employee relocation refers to the processes or relocation services involved in the transfer of employees or potential employees from one location to another. Other terms that refer to these processes may include:

  • Employee Transfer
  • Employee Mobility
  • Global Mobility
  • Domestic Relocation
  • Corporate Relocation

While some of these terms may be used interchangeably, the terms global and domestic mobility may differ in the range of services commonly required for relocating an employee. Reference to global mobility is commonly used as an umbrella term, and includes domestic mobility processes. Reference to domestic mobility usually excludes processes commonly needed for international employee relocation such as visa acquisition, repatriation or language training.

Generally, a company’s management of workforce mobility accounts for ongoing employee support services, supplier management, candidate selection, relocation benefits and expense management. Corporate relocation programs may vary between companies due to size, need, or destination.

The overall process of employee relocation is commonly divided into one of four service brackets including:

Pre-Decision Services

According to Worldwide ERC data, the average cost to relocate an executive level home-owning employee comes to $97,000. For this reason companies seek assurances that a given employee is a good fit for relocation. Pre-decision services aim to uncover any potential issues that may arise prior to the employees relocation in order to reduce the risk of a failed relocation. Some of the most common reasons for failed relocations according to Worldwide ERC include:

  • Negative home equity
  • Slow real estate housing market
  • Family resistance to move
  • Spousal employment
  • High costs of housing

The below are examples of a few common pre-decision services:

Candidate Assessment – Services that assess candidate expectation, skills, personal qualities, family circumstance, financial preparedness, etc.

Cost of Living analysis – Cost of living comparison of origin and destination cities to help determine acceptable or competitive salary range.

Market analysis – Determines the likely home sale timeline and identifies potential home sale challenges such as negative equity.

School Reports – Public and Private School reports provided to the relocating employee to aid community selection.

Moving Cost Estimates – Cost estimates on household goods transport, helps budget for relocation costs.

Community Search and Tours – Coordinates community orientation tours to familiarize relocating employees to their new location, and assist in selecting an area that fits their particular interests.

Origin services

Origin services account for all services necessary at the transferring employees origin location. Some of these services include:

Expense Management – Establishment of expense reporting and management services for both the company and employee. Designed to track and contain costs during the relocation process. Utilized throughout the entire relocation process*

Home Sale Assistance – May include connecting employees with real estate agents, home marketing assistance, home buying programs, etc.

Household Goods Management – Management of household goods transport from origin to destination. May include procurement of van line services, replacement insurance, and guaranteed “not to exceed” estimates for goods transportation, etc.

Visa and Immigration Services – For international relocations, visa and immigration services organize company and employee documents required for visa acquisition.

Property Management – For employees not selling their home. May include rental marketing assistance, tenant management, vacant property management, landlord consulting, or property maintenance.

Destination services

Destination services account for all services necessary at the transferring employees destination location. The range of destination services sometimes includes a further segmentation of “settling in services” aimed at helping the employee acclimate to their new location. Some of these services may include:

Home Finding Services – Services include connecting employees with real estate agents at destination, home buying assistance, corporate housing, temporary housing, rental assistance, home finding tours, etc.

Settling in Services – Services that aid employee acclimation to their new location including access to online resources, attaining local driver’s license, child care, connecting utilities, locating a primary care physician, etc.

Vehicle Lease or Purchase – Services that assist relocating employees acquire a vehicle including loan support, lease negotiation, etc.

Family Assistance – Services that assist the relocating employee’s family, including spousal employment support, counseling services, stress management assistance, etc.

Return or Repatriation Services

In most cases,  employee relocation services for individuals returning from temporary domestic assignments are equivalent to services provided at departure. While there are some short term domestic relocation programs amongst companies, the majority of return services handle an employee’s return from international assignment. International assignments are usually classified into one of four categories:

  1. Extended Business Travel (EBT): an assignment of 3 months or less.
  2. Short Term: an assignment lasting 6 months to a year. (range may go up to 2 years)
  3. Long term assignments: An assignment lasting 2-3 years.
  4. Permanent: An assignment lasting 3 years or more.

For EBT, short term, and long term assignments, repatriation plans have become an industry recognized necessity for effective employee retainment. According to Atlas surveys around 40% of expatriate employees leave their sponsoring company after assignment. Repatriation services seek to close this gap, and help organizations maximize their workforce investment and retain employees that have acquired substantial knowledge capital. Repatriation is a dynamic service area that has wide variation. For example repatriation counseling helps employees returning from international assignment manage culture shock, and re-acclimate to domestic life. Other services may include:

  • Lease termination assistance
  • Home services termination (such as utilities)
  • Tax equalization

In all, workforce mobility seeks to analyze, manage, execute and optimize the processes involved in transferring an employee from one location to another. For more detailed descriptions of relocation services visit the following pages:

Global Relocation
North America Relocation

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