Global Mobility: When employees go abroad. “Everything under control” – or not?

Opportunities ans challenges

More and more companies are relying on international assignments for their employees. Whether it’s just attending a meeting abroad, cross-border project work, expansion or strategic partnerships – global mobility has long been part of everyday business life.

While company management assumes that everything is in order, financial accounting, payroll accounting and HR managers are faced with complex challenges. A successful foreign assignment involves far more than just organizational issues.

The secondment of employees is a complex task that goes far beyond legal requirements. In addition to issues relating to labor, tax, and social security law, as well as compensation and benefits, there is always the question of whether the employee can integrate culturally and perform as desired in the country of assignment.

A successful assignment therefore requires special attention to the personal and cultural adaptability of employees. Language barriers, different ways of working and social norms can make integration more difficult and therefore have a significant impact on the success of the foreign assignment.
In addition, the employer has a comprehensive duty of care for the posted employees and is liable for omissions or errors.

A well thought-out and holistic approach makes a decisive contribution to success.

Mastering tax complexities

If employees work abroad, the situation can quickly become complicated. Which tax laws apply? Is there a risk of double taxation? Does the company have to register a permanent establishment abroad?
There are often country-specific regulations that require detailed knowledge. The consequences of an incorrect assessment can be expensive:

There is a risk of fines, additional claims or even criminal prosecution.

Managing social security issues safely

International assignments raise numerous social security issues. In which country must contributions be paid? Which insurances still apply and which do not?

Without precise planning, companies not only risk financial disadvantages, but also that their employees suddenly find themselves without social security cover. Dealing with these issues incorrectly can not only cost money, but also have a massive impact on employee confidence.

Ensuring effective organization and compliance

HR managers have the task of organizing the foreign assignment from start to finish. In addition to amendments to employment contracts, visas, work permits and relocation services, cultural particularities must also be taken into account. Without clear processes, delays can quickly occur, putting a strain on both the company and the employees concerned. Those who do not deal with these issues at an early stage jeopardize a successful assignment and generate avoidable additional costs.

TPC: The right partner for global challenges

International employee mobility is complex. The multitude of tax, social security and organizational requirements calls for professional management.

This is where TPC, the benefit expert network, comes into play: as a coordinator that brings together all the relevant players – from lawyers and tax consultants to HR managers and authorities at home and abroad. With its extensive international network, TPC ensures that companies do not receive isolated individual solutions, but an integrated, strategic solution that works for each individual.

A strategic partner for international mobility

TPC ensures that all departments involved work together efficiently, regardless of their location. TPC provides support in the organization of foreign assignments – whether tax challenges, social security issues or cultural peculiarities.

Connections that make the difference

Without coordinated management, international operations can quickly lead to misunderstandings or delays. TPC takes on this management and links the relevant players with each other. Not only is knowledge of the legal framework crucial, but also an understanding of cultural differences and intercultural challenges.

Competent advice, organization and implementation

In addition to individual consulting, TPC offers holistic implementation. Companies benefit from clear processes, reasonable administrative complexity and a partner that operates worldwide. This allows customers to remain focused on their core business, while all challenges relating to global employee assignments are professionally coordinated.

The first step to a successful assignment

TPC offers a “Global Mobility Quick Check”: an analysis and assessment of your current situation in Germany with regard to the secondment of your employees. This includes tax, social security and labor law issues as well as benefits (e.g. occupational pension scheme, occupational supplementary health insurance, working time accounts, risk insurance, flexible benefits, etc.). All-inclusive price: EUR 2,750 plus VAT.

Conclusion: TPC – the partner for international mobility

The management of companies should be aware of this: Foreign assignments are not an administrative no-brainer. Those who only focus on the obvious overlook unknown risks in the background. Financial accounting, payroll accounting and HR managers need clear processes and professional support in order to cope with the complex requirements.

With an experienced partner like TPC, companies can ensure that their international employees are not only successfully seconded, but also optimally looked after – and that all legal, tax and organizational challenges are professionally resolved. Although it may seem simple at first, the matter usually turns out to be much more complex.

Contact us for your personal consultation.