Long-Term Assignments

A long-term assignment is a longer stay by an employee (“the assignee”) at the assignment location; generally for the duration of 1 to 5 years.  Generally, his/her spouse and family are allowed to accompany the assignee.  For duration beyond 5 years, present-day employers generally convert the long-term assignment into a permanent relocation or localisation. Under a permanent relocation arrangement, the expatriate employee receives compensation and benefits similar to those received by local employees plus some “extras”, e.g. a reduced level of cost of living allowance.  Under localisation, the expatriate employee’s compensation and benefits will be adjusted to the level enjoyed by local employees.

Some considerations for the assignee: 

• accommodation and security at assignment location,
• cost of living expenses,
• arrangements and efforts for bringing over the family (e.g. sourcing for appropriate schooling, spouse support, shipment of household and personal effects, etc.),
• availability of living amenities such as medical and entertainment services,
• frequency of home trips, etc..

Some considerations for the employer:

• how to compensate the assignee,
• how long and how often to pay/provide different types of benefits,
• how to structure the payment of different allowances, and
• whether to continue paying/provide home country benefits.

Do you need:

• to build an effective short-term assignment compensation and benefits package; and/or 
• to help the assignee relocate to, and settle in, at the assignment location?

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