managing an international workforce · mobility is evolving... pwc future of work 3 … and the...

Managing an international workforce

Nic BoydensMarc Mostin

Setting the scene

Future of WorkPwC 2

Mobility is evolving...

Future of WorkPwC 3

… and the world is changing

Increased restrictions

Regulation

Reputation

Data sharing

Politics and security

* ’Moving people with purpose’ PwC’s 2016 Modern Mobility Survey

Globalization is resulting in more

short term, commuter assignments and

business trips

More flexible living/working, cross border arrangements

will take place

31% of companies don’t know the

number of employees working

internationally

71% of Millenials expect international

experience

20% of assignments last < 12 months

89% of companies plan to increase

internationally mobile workers within two

years

Technology is transforming the way

we work

PwC’s Modern Mobility Survey*

Once upon a time...

Future of WorkPwC 4

PwC

Host country = Belgium

Home country = US

Long Term Assignment (3 – 5 years)

CEO of Belgian plant

Married, partner not working

2 dependent children

The standard

5PwC 5Future of Work

How to walk the line?

Future of WorkPwC 6

EEA nationals + Swiss nationals:

• Free movement of workers and free movement of services (art. 45 and 56 TFEU)

• Exemption from work permit/professional card + family

Non EEA/Swiss nationals: PRIOR authorization to work must be obtained

• Duration of stay in Belgium: more or less than 90 days?

• Personal family situation? Procedure family reunification

• Country of residence vs.nationality

Economic Immigration perspective

Future of WorkPwC 7

EEA nationals + others subjected to EEA legislation in MS

• EU Regulations: exportability, totalization of periods, no discrimination, 1 applicable legislation

• Applicable legislation: country of occupation?

• Country of residence? Place of residence of family?

• Temporary assignment or multi state occupation?

• Self-employed or salaried employee?

Not EEA nationals: is there a totalization agreement?

• Possible exemption from Belgian SS in case of assignment

Social Security: legislation & benefits

Future of WorkPwC 8

Tax residency position

Expat status

Double tax treaty

Reporting and wage tax withholding obligations

Equity income

9

Tax perspective

Future of WorkPwC 9

Permanent Establishment

Rome 1 Regulation: applicable law for wage and employment conditions?

• BUT mandatory provisions

• Posting of Workers Directive + enforcement Directive

Which court is competent?

Local employment agreement or assignment?

• In Belgium Act of 5 March 2002: almost all national provisions are applicable for posted workers

• Limosa (pre assignment notification)

Employment law perspective

Future of WorkPwC 10

Nowadays...


12

Things are different...

Let’s be as flexible as your employees...

https://www.mentimeter.com/s/855dc01d431604a1827675e2c38f409f/0baf49126bb8/edit

We only know that Belgium is the host country




Section titleSubtitle

Future of Work – November 2018

Key take-aways


Be as agile & flexible as your employees and/or your organisation

There is a complex field of compliance out there

Nothing is impossible (most of the times)

Identify main attention points and prioritise

Constant dialogue & robust relations internally and with authorities

14

Facts and assumptions


PwC 15

Contacts

Nic Boydens Director Global Mobility [email protected]

Marc Mostin Senior Managing [email protected]

Future of WorkPwC

© 2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

Thank you

Managing an international workforceNic BoydensMarc Mostin

PwCBusiness Traveler Workshop May 2019PwCBusiness Traveler Workshop May 2019

Mobility is evolving…

18

…and the world is changing


Regulation

Reputation

Data sharing


Future of Work – November 2018 19PwC

Case study 1

PwC Future of WorkPwC


20

Host country = Belgium

Home country = US

Long Term Assignment (3 - 5 years)

CEO of Belgian plant

Married, partner not working

2 dependent children

Can you add a picture of a typical “happy family”


Future of Work – November 2018Future of Work 21PwC

Questions to ask

• EEA nationals + Swiss nationals:

─ Free movement of workers and free movement of services (arts. 45 and 56 TFEU)

─ Exemption from work permit/professional card + family

• Non EEA/Swiss nationals: PRIOR authorization to work must be obtained

─ Duration of stay in Belgium: more or less than 90 days?

─ Personal family situation? Procedure family reunification

─ Country of residence vs.nationality

Economic Immigration perspective

Future of WorkPwC

➢ EEA nationals + others subjected to EEA legislation in MS

■ EU Regulations: exportability, totalization of periods, no discrimination, 1 applicable legislation

■ Applicable legislation: country of occupation ?

■ Country of residence? Place of residence of family?

■ Temporary assignment or multi state occupation ?

■ Self-employed or salaried employee?

➢ Not EEA nationals: is there a totalization agreement?

■ Possible exemption from Belgian SS in case of assignment

Social Security: legislation & benefits

Future of WorkPwC

• Rome 1 Regulation: applicable law for wage and employment conditions?

ㄧ BUT mandatory provisions

ㄧ Posting of Workers Directive + enforcement Directive

• Which court is competent?

• Local employment agreement or assignment?

ㄧ In Belgium Act of 5 March 2002: almost all national provisions are applicable for posted workers

ㄧ Limosa notification

Employment law perspective

Future of WorkPwC

• Tax residency position

- Impact on private income

- Inheritance tax residency status

• Expat status

• Double tax treaty

• Reporting and wage tax withholding obligations

• Equity income

• Permanent Establishment


Tax perspective

Future of Work – November 2018 26PwC

Interactive case examination

Case study 2

We are flexible as your employees are…


We only know that Belgium is the host country






Future of Work – November 2018

Key take aways

Future of Work 28PwC

● Be as agile & flexible as your employees and/or your organisation

● There is complex field of compliance out there ● Nothing is impossible (most of the times)● Identify the main attention point● Better consult than cure ● Constant dialogue & robust relations with the

authorities


Key take aways

Mobility is evolving…


…and the world is changing


Regulation

Reputation

Data sharing


71% of Millenials expect international experience 31% of companies don’t know the number of

employees working internationally

Globalization is resulting in more short term, commuter assignments and business trips

More flexible living/working, cross border arrangements will take place

89% of companies plan to increase internationally mobile workers within two years

Technology is transforming the way we work

* ’Moving people with purpose’ PwC’s 2016 Modern Mobility Survey

PwC’s 2016 Modern Mobility Survey

20% of assignments last < 12 months

managing an international workforce · mobility is evolving... pwc future of work 3 … and the...

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