1. Netanya Academic College E-mail: tsvi@ktalegal.com
Relocation 1.01
GEM – Global Expert Mobility:
A 600 Billion$ phenomena!
Netanya Academic College
Adv. Tsvi Kan-Tor
March 2017

2. Contents Part 1 – Introduction (03 - 07)
Part 2 - Things to consider in GEM (08 -15)
Part 3 – Types of relocations ( )
Part 4 - GEM in Israel ( )
Part 5 - Global Mobility: Background ( ) 2

3. Part 1 Introduction 3

4. The Global Expert Mobility process
The Need – Project, Job
Job Definition
Candidate Interview
Health Insurance
Work Permit and Tax
Terms – Salary, etc.
Ground Facilities
Arrival Date
Repatriation 4

5. The GEM Industry structure
HR – Companies
Lawyers – Practitioners, Court, PIBA Prosecution
Regulator – PIBA, compliance, legislator
CPA – Tax advisors, social security
Ground service companies (House, car etc.)
Health Insurance – Health Care Providers
Packing and shipping
Other services (Pay slip, Corporate Policy, etc.)
Academia – research, media
Cultural – Language etc. 5

6. The Mobility Pyramid Annual Turnover GEM 3 – 4 Million people
USD 600$ Billion per person – G20
GEM = 1% - 2% of the total mobility
GEM = 3 Million experts
Total mobility – 300 Million people
No reliable data. Educated industry estimation
Job seekers
Total Legal Employees
35 Million people
Undocumented – Illegal employees
50 Million people
Refugees – 65 Million people
Intra Country – 200 Million people
Total Mobility – 350 Million people

7. The Mobility Phenomena
USA: 12 – 20 Million undocumented illegal employees
EU + USA + MERCOSUR: 40 Million illegal employees
Job seekers (employees, skilled employees, experts) 35 – 40 Million
0.5 Million from Portugal to Angola and Mozambique
3 – 4 Million from Poland to the UK, Ireland and Germany
A huge wave from Africa and the Middle East is changing Europe and history!

8. Part 2 Things to consider in GEM8

9. Things to Consider in GEM
Work Permits
Major factor – Time!
Sponsorship
Documents
Eligibility requirements
Very important:
Family, Health Insurance, Tax 9

10. Things to Consider in GEM
Ground Services
Residence
Schools
Mentality
Shopping
Language
Formalities – police, municipality, etc. 10

11. Things to Consider in GEM
Medical Insurance
Coverage and trips
Health care service provider
Service availability
Air rescue – 3rd country
Personal issues with the family - eligibility 11

12. Things to Consider in GEM
Tax
Double Taxation Treaties
Different CPA’s for employer and employee
Who is at what risk
Personal issue (options, inheritance, spouse) 12

13. Things to Consider in GEM
Social Benefits
Continuity of pension, health insurance, etc.
National Social Security
Difference in notice, extra hours, holidays, etc.
Difference in taxation of shifts, compensations, etc. 13

14. Things to Consider in GEM
Family
Many failures due to issues of family members
School – cost, language, mentality, orientation
Visits to country of origin, flights, resident
Repatriation
Issues of origin (religious, school, food, etc.)
Driving license
Spouse work (permit, license) 14

15. Things to Consider in GEM
Culture and Language
Nationality and cultural issues
Practicing foreign religious - Christian in an extreme Muslim country
Family members
Language 15

16. Part 3 Types of relocations16

17. One Employee for a Specific Job
Types of Relocations
One Employee for a Specific Job
Managerial or expert position
In many cases – long term with family
Life in an average to good city
Typical positions – CEO, CFO, CTO of local entity
Family usually joins 17

18. Group of Employees for a Project
Types of Relocations
Group of Employees for a Project
Short to medium time
No families
Reduce ground costs (resident, salary, etc.)
Many do not stay for the entire project duration
Specific tax and social issues
Someone from the company is in charge (HR, operation, project)
A local coordinator – Service provider 18

19. Types of Relocations Commuter
(employee travels back and forth and family stays in country of origin)
A growing phenomena
A solution to issues such as family, school, career of spouse
Usually a cheaper option
Easy to start
Usually up to 4 hours flight 19

20. Types of Relocations Short Projects (less than 1 year)
Usually – no family relocation
A smaller “basket” of relocation benefits
Some just “come and go” - inspectors, etc.
Many skilled employees 20

21. Types of Relocations Long Projects (more than 1 year)
More families join
Bigger relocation benefits
Local coordinator for ground services
Usually senior employees
Temporarily work permits or visas 21

22. (employee remains in destination country for over 5 years)
Types of Relocations
Localization
(employee remains in destination country for over 5 years)
Usually end of eligibility to relocation benefits
Changes in tax, salary and benefits
Permanent resident or citizenship 22

23. Part 4 GEM in Israel 23

24. GEM in Israel Visa types
Sub Class B – 1 – Work Permit
45 days
3 months
1 year academic
1 year non academic
Quota visa (construction, care giver, agriculture)
Founders visa
Investor visa (US citizens)
Sub class visa A
Aliya eligibility – spouse, marriage 24

25. GEM in Israel Visa types – B – 1A25

26. GEM in Israel
Niche
Several thousand inbound and outbound annually (7 – 9K 2016)
Mostly hi-tech, infrastructure, finance, and agriculture
Also – media, entertainment, sports, medicine, academy etc.
Far East is growing fast – both inbound and outbound
Young industry – Short of qualified employees 26

27. Legislation and Procedures
GEM in Israel
Legislation and Procedures
(present and future)
As of 2002 – special sub procedures
In the future – several special types of visas
Build up of professional service providers
PIBA - Population Authority - a success story
Better service, More professionals, More compliance 27

28. PIBA - Population Immigration and Border Authority
GEM in Israel
PIBA - Population Immigration and Border Authority
PIBA – control the entire process from POE to Court
Implement procedures and regulations
Control the entire process - POE – Status – Inspections – Court – Jail/Deportation 28

29. GEM in Israel Compliance implications
Inspections
Unification of all branches: Border Control, Ministry offices, Inspections.
Inspections at employer sites – No prior warnings
Inspections: Visa, Contractors, Payment of prevailing wage, housing req., Medical insurance etc.
Criminal Implications – Employee and Employer
Deportation of the employees. Bar from future entries.
Heavy fines on employer
Criminal Charges against managers in the company
Black listing of the company. 29

30. GEM in Israel 45 Work Visa Process (SEA)
Can enter and start working upon receipt of the work permit.
Need to complete the process within two days of arrival in Israel. Without this completion – the work in Israel would be illegal.
Can be divide the 45 days to in calendar year. Prior to each entry a new application must be obtained.
Availability only to nationals who are exempt from a tourist visa
The visa cannot be extended. 30

31. GEM in Israel B -1 Work Visa: up to 3 months
Required documents:
CV/Resume
Academic certificates (if not originally in English, certificates will have to be translated into Hebrew and notarized by an Israeli notary)
Copy of passport (Copy of passport must be valid for at least 1 year and 6 months from the beginning of the process)
Forms completed and signed
Power of attorney
Three (3) passport-size photos
Police clearance (issued in the last 6 month) and medical clearance (issued in the last 3 month) – may be required upon consular processing
**For duration below 3 months, dependents will not be allowed to stay in Israel 31

32. GEM in Israel Israel B-1 Visa Process - General Introduction
All non-Israeli employees (EE’s) intending to undertake productive work must obtain a work visa (B-1 classification) prior to entry into Israel
Valid passport should for 2 years from the assignment end and two blank visa pages
Normal processing time - 90 days from filling
Business travel (BT) to Israel is possible during the first phase of work permit process – but is not recommended. BT is not possible during the second phase. Productive work is prohibited during any BT
B-1 work visa will initially be obtained at the Israeli consulate in the EE’s country of nationality or country of residence
EE’s spouse will not be allowed to work while in Israel 32

33. GEM in Israel B-1 Work Visa Process
Step 1
Document collection and preparation of work permit and B-1 work visa applications.
Step 2
Submission of work permit application at the Work Permit Unit.
Step 3
Approval of the Work Permit Unit
Submission of work visa application to PIBA. Upon approval a notice will be sent to the relevant consulate
Step 4
Step 5
Employee appears in-person at the Israeli Consulate and receive temporary work visa.
Step 6
Employee enters into Israel and get a multi entry b - 1 visa. 33

34. GEM in Israel 1 year – academic
The prevailing wage for an expert is double the average wage in Israel.
The Ministry of Interior may require a higher salary, in individual professions where the average wage is higher than the average wage in the overall economy.
Work permits of this kind are valid for up to one year from approval.
A one year extension is available for up to 63 months.
A single entry visa is given at the POE. Mutly entry visa can be issued latter at the PIBA office. 34

35. GEM in Israel 1 year – Non academic
Mandatory requirement:
Salary must be deposit to an Israeli Bank account on the expat's name
Non Mandatory requirements:
Bank deposit guarantee of 2 months salary for each employee (about 19K NIS)
An affidavit signed by the employee
Employment contract confirmed by an Israeli lawyer regarding compliance with the Israeli laws. 35

36. GEM in Israel New visa for founders
An Israeli company
Not available yet
Need to be sponsored by a qualified sponsor
Spouse will be allowed to work
One year with extension 36

37. GEM in Israel New visa - Investors
For US citizens only – Similar to E – 2
Not available yet
Up to 3 months
Working right to spouse
Will be extended to additional countries 37

38. Part 5 Global Expert Mobility: Background38

39. GEM - A Part of Global Mobility
Illegal immigrants - refugees, undocumented, etc.
Legal immigrants
Student and academic staff
Legal/Illegal workers
Diplomats, quasi-government workers, and NGO’s
GEM- researchers, scientists, media, sports, entertainment, Hi Tech, engineers, Highly qualified employees (1%-2%)
The problems – no agreed definition, no reliable statistics 39

40. The History of Global Expert Mobility
Until 1989
US Domination (up to 1 million GEM)
GEM relatively small (250,000 Globally)
Majority are non-business (Diplomats, Academia, NGO’s)
Family based global mobility 40

41. GEM in 2017 US stayed the same – less than 1M
Steady annual growth of 10% per year for 20 years
Global phenomena of over 3 Million and growing
More countries, More companies, More sectors, More types, and More individuals 41

42. The Future of GEM
More – companies, countries, employees - $1 Billion per year
Standardization – mobility package by seniority or type
Several different types – commuters, family, projects
Academic employees – HR, law, tax, insurance
Global suppliers
Global guidelines and treaties
New Destinations – Angola, Mozambique, and China 42

43. Adv. Tsvi Kan-Tor E-mail: tsvi@ktalegal.com Tel: 03-613-8202
z:/kta/presetation/Netanya – March 2017