1. Relocation 1.01 GEM – Global Expert Mobility:
A 600 Billion$ phenomena!
Tel-Aviv University
Adv. Tsvi Kan-Tor
January 2017

2. Contents Part 1 – Introduction (03 - 07)
Part 2 - Things to consider in GEM (08 – 15)
Part 3 – Types of relocations (16 – 22)
Part 4 - GEM in Israel (23 – 26)
Part 5 - Global Corporate Relocation Treaty (GCRT) (27 – 28)
Part 6 - Global Mobility: Background (29-33) 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
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 24

25. Legislation and Procedures
GEM in Israel
Legislation and Procedures
(present and future)
As of 2002 – special sub procedure
In the future – several special types of visas
Build up of professional service providers
PIBA - Population Authority - a success story
Better service, more professional, more compliance 25

26. 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 procedure and regulation
POE – Status – Compliance - Court 26

27. Part 5 GCRT - Global Corporate Relocation Treaty (GCRT) Draft - IBA27

28. - GCRT - Global Corporate Relocation Treaty
Drafting stage by the International Bar Association (IBA)
The concept:
Agreed slim base with flexible protocols
Including agreed definitions and benchmarks 28

29. Part 6 Global Expert Mobility: Background29

30. 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 30

31. 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 31

32. GEM in 2015 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 32

33. 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 33

34. Adv. Tsvi Kan-Tor E-mail: tsvi@ktalegal.com Tel: 03-613-8202
z:/kta/presetation/Tel Aviv University – January 2017