HRO Today March 2017 - 17

Mobility
Pressure's On
Organizations can expect costly fi nes-or worse-if they don't
follow the ever-changing rules of relocation compliance.
By Russ Banham
At the end of the last century, globalization resulted in
an extraordinary uptick in the volume of employees on
assignment abroad and the length of their stays. The
tax, legal, and immigration rules limiting the duration
of these assignments were different but diffi cult to
enforce given the mass of assignees and their ebb and
fl ow. Those days are long gone.
Most countries today are stringently policing their rules
and harshly penalizing companies for non-compliance.
Stay too long in a country and risk a stiff fi ne or
worse-incarceration and the permanent barring of the
employee to conduct business in the country.
The constantly shifting landscape of regulations across
the world makes compliance even more problematic.
" Privacy, visa, and tax regulations are forever in fl ux,
[18]
HRO TODAY MAGAZINE
| MARCH 2017
putting the onus on companies to stay on top of these
changes, " says John Fernandez, executive vice president
at relocations services provider Global Mobility Solutions
(GMS). " Failure to do so can be fi nancially painful. "
It's no wonder that nearly eight in 10 corporate
respondents (79 percent) to a 2016 survey by Cartus
on global mobility practices said their organizations
has increased their focus on compliance in the last two
years. Seventy-two percent also stated that they want to
get ahead of possible challenges much sooner.
This due diligence is likely to be necessary, as the global
regulatory environment reacts to the impact of Brexit
on the European Union and the Trump administration's
interest in trade protectionism. If other EU countries
follow Britain's plans to leave the union, the freedom of

HRO Today March 2017

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