Sample Global Mobility Policy

Sample_Documents

DISCLAIMER: This is a sample template provided for informational purposes only. It does not constitute legal, tax, or financial advice. Organizations should consult their own legal and tax advisors and tailor this document to reflect their specific business needs, geographies, and applicable laws.

Document Header

Field	Value
Company	<Company Name>
Document Type	Global Mobility Policy
Category	Perquisites & Programs
Version	<Version>
Effective Date	<Date>
Last Reviewed	<Date>
Next Review	<Date>
Policy Owner	<Job Title, e.g., Global Head of Total Rewards>
Policy Sponsor	<Executive Name/Title, e.g., CHRO>
Approving Body	<Committee Name, e.g., Rewards Governance Committee>
Policy Number	<Policy ID>
Geography	Global with local adaptations

Purpose and Objectives

The purpose of this Global Mobility Policy is to establish consistent, equitable, and compliant practices for supporting employee mobility across borders. This policy provides Total Rewards and HR professionals with guidance on program design, eligibility, benefits, taxation, governance, and implementation.

Objectives include:

Enable business growth and talent development through strategic deployment of employees internationally
Promote internal equity and cost discipline while providing a competitive employee experience
Ensure compliance with immigration, tax, social security, data privacy, and labor laws
Provide clear roles, responsibilities, and decision rights for stakeholders
Standardize mobility benefits and processes while allowing controlled exceptions for unique business needs

Scope and Applicability

In Scope

International assignments and transfers initiated by <Company Name>, including cross-border moves between two countries and moves to or from the employee’s home country
Assignment types covered by this policy: short-term assignments, long-term assignments, permanent transfers, global commuters, extended business travelers, and localization transitions
All regular employees of <Company Name> and its subsidiaries, including full-time and part-time employees, subject to local employment eligibility and applicable laws
Mobility-related compensation, allowances, perquisites, and services administered or funded by <Company Name>

Out of Scope

Domestic relocations entirely within one country (covered by the Domestic Relocation Policy)
Temporary travel up to <Number> days that does not trigger immigration or tax obligations (covered by the Travel and Expense Policy)
Employee-initiated international remote work not sponsored by the business (covered by the Remote Work Policy)
Independent contractors, interns, or third-party agency workers unless explicitly approved in writing

Policy Hierarchy and Local Supplements

This global policy sets minimum standards. Where local legal requirements are more protective of the employee, local law prevails.
Local mobility supplements may refine benefit delivery and tax treatment to comply with <Country> laws. Conflicts are resolved by the Policy Owner in consultation with Legal and Tax.

Guiding Principles

Business-driven deployment aligned to workforce planning and talent development
Equity and consistency balanced with flexibility for market realities
Compliance-first approach to immigration, tax, social security, data privacy, and labor regulations
Cost effectiveness and transparency with measurable return on investment
Duty of care for employee safety, wellbeing, and family support
Simplicity and clarity to ensure a positive employee experience and efficient administration
DEI considerations to promote fair access to international opportunities

Definitions and Assignment Types

Key Definitions

Home Country The country associated with the employee’s original employment and tax residency before mobility.
Host Country The country to which the employee is assigned or transferred.
Balance Sheet Approach A compensation methodology that maintains the employee’s home-country purchasing power and tax position while on assignment.
Hypothetical Tax A payroll deduction equal to the estimated home-country tax the employee would have paid absent the assignment.
Shadow Payroll Host-country payroll reporting used to comply with tax and social security withholding without duplicating cash pay.
Localization Transition to host-country terms and conditions on a permanent basis after an assignment.

Assignment Types

Short-Term Assignment (STA) Up to 12 months, typically project-based. Primary objective is knowledge transfer or project delivery. Employee remains on home-country employment terms with per diem or partial allowances.
Long-Term Assignment (LTA) 12 to 60 months. Employee remains on home-country contract with balance sheet compensation and comprehensive host support.
Permanent Transfer (PT) Indefinite move with employment transitioned to the host entity. Compensation moves to host-based market structures; relocation and settling benefits apply.
Global Commuter Regular cross-border commuting while maintaining home residence. Limited benefits and travel support apply. Duration typically up to <Number> years.
Extended Business Traveler (EBT) Frequent travel to a host country exceeding normal business travel thresholds, potentially triggering tax or immigration requirements, typically beyond <Number> days in a rolling <Number>-day period.
Localization Transition Planned end-of-assignment transition to host-based terms after <Number> months, with a documented glide path for reducing assignment benefits.

Eligibility and Approval

Eligibility Criteria

Role is critical to business needs aligned with workforce plans in <Country>
Employee in good standing with performance rating of <Rating Threshold> or higher
Minimum service of <Months> months unless waived by the Approving Body
Medical and security clearance obtained where required
Immigration eligibility for employee and eligible dependents

Approval Workflow

Manager submits a mobility business case with cost estimate and rationale
HR Business Partner validates role requirements and talent implications
Total Rewards reviews compensation approach and policy alignment
Finance approves budget, cost center, and foreign exchange assumptions
Legal and Tax confirm immigration, tax, and social security feasibility
Mobility COE confirms vendor capacity, timeline, and service scope
Final approval by the Approving Body and issuance of the Letter of Assignment

Letter of Assignment and Documentation

A Letter of Assignment or Transfer Letter is required for STA, LTA, and PT moves and must specify assignment type, duration, compensation method, benefits, and repatriation terms.
All costs must be coded to <GL Code> and tracked in <System Name> with a signed policy acknowledgment.

Compensation Philosophy and Approaches

Methods of Compensation

Balance Sheet (LTA default) Maintain home-country net purchasing power. Components typically include home-country net salary, hypothetical tax, goods and services differential (GSD), housing and utilities norms, mobility premium where applicable, and host tax equalization.
Host-Based (PT default) Move employee to host salary structures, benefits, and pay cycles, with one-time relocation support and limited transitional allowances.
Local-Plus (Alternative) Host-based pay plus selected allowances (e.g., housing, education) where market practice warrants.
Commuter and STA Home-based pay continues; per diems, travel, and limited housing support provided per policy.

Balance Sheet Mechanics

Spendable income and GSD are calculated using <Vendor Name> cost-of-living indices updated <Frequency> (e.g., quarterly).
Housing norms are determined using <Vendor Name> housing data by host city and family size, with caps set by grade and market.
Hypothetical tax is calculated by <Vendor Name> or <Tax Provider> at <Frequency> using <Assumption Set Name> and adjusted annually or upon material change.
Exchange rates use <FX Source> monthly average rates; true-ups occur each <Frequency>.

Premiums and Differentials

Mobility Premium <Percentage>% of base salary for LTAs where external market requires an incentive.
Hardship Allowance <Percentage>% based on <Index Name> rating for the host location.
Danger Pay Applied only in approved high-risk locations per <Security Policy Name>.

Allowances, Perquisites, and Services

Pre-Assignment Support

Look-See Trip One trip for employee and <Number> dependent(s), up to <Nights> nights, economy class, per diem per Travel Policy.
Immigration and Visa <Vendor Name> to prepare and file applications; government and legal fees covered by the company for employee and eligible dependents.
Medical Clearance and Vaccinations Company-covered where required by host country or company policy.
Language and Cultural Training Up to <Hours> hours via <Vendor Name> for employee and partner.
Tax Briefing Pre-move and on-arrival tax briefings with <Tax Provider>.

Relocation and Shipment

Household Goods Surface shipment up to <Weight> kg or <Container Size>; air freight up to <Weight> kg; storage up to <Months> months.
Exclusions Prohibited or restricted items per <Country> customs; pets and vehicles subject to separate policy and employee cost unless pre-approved.
Temporary Accommodation Up to <Nights> nights on arrival; extensions require Mobility COE approval.

On-Assignment Benefits (Typical LTA)

Housing Allowance Furnished housing or allowance aligned to <Vendor Name> norms; cap of <Amount> per month; security deposit and agent fees covered.
Utilities Allowance Up to <Amount> per month for electricity, water, gas, and internet.
Goods and Services Differential Calculated based on family size, home spendable income, and host index; reviewed <Frequency>.
Settling-In Allowance One-time payment of <Amount> or <Percentage>% of monthly base.
Transportation Public transit allowance or vehicle lease up to <Amount> per month; driver support in locations where customary.
Education Assistance Tuition and mandatory fees up to <Amount> per dependent per school year for <Grades>; admission fees and registration covered; cap in local currency.
Spouse/Partner Support Career counseling, job search assistance, or stipend up to <Amount>; work authorization is the responsibility of the host government.
Home Leave One roundtrip for employee and eligible dependents every <Months> months; class of service per Travel Policy; taxable benefit grossed up as applicable.
Rest and Recuperation (R&R) For hardship locations per <Security Policy Name> guidelines; frequency and allowance per location rating.
Wellbeing and EAP Access to global EAP, mental health, and medical evacuation through <Vendor Name>.

End of Assignment and Repatriation

Repatriation Travel One-way tickets for employee and eligible dependents to home or next approved destination.
Shipment and Storage Reverse shipment and up to <Months> months of storage-in-transit.
Lease Termination Landlord penalties covered with documentation up to <Amount>.
Reintegration Support Repatriation coaching and local HR re-onboarding.

Permanent Transfers (PT) and Local-Plus

One-time relocation benefits similar to LTA initiation
No GSD or tax equalization unless approved by exception
Transitional housing up to <Nights> nights and settling-in allowance
Localization to host benefit plans effective <Date or Timeline>

Tax, Social Security, and Payroll Compliance

Tax Policy Framework

Tax Equalization (Default for LTA and some STA) Employee pays hypothetical home tax; the company pays actual home and host taxes. Employee remains tax-neutral compared to staying at home.
Tax Protection (By Exception) If actual taxes exceed home hypothetical, company covers the excess; if lower, employee retains savings.
PT and Local-Plus Generally no equalization; employee is responsible for personal taxes on host payroll.

Withholding and Reporting

Hypothetical tax withheld on home payroll; shadow payroll operated in host country for statutory compliance.
Social security coverage and certificates of coverage (A1/CoC/Totalization) determined by <Tax Provider> based on agreement between <Home Country> and <Host Country>.
Equity compensation reporting and withholding follow <Company Equity Policy Name> and local rules; taxable events may require host payroll reporting.

Gross-Ups and Imputed Income

Taxable allowances and benefits are grossed up by <Vendor Name or Internal Process> using <Percentage>% supplemental rates or annualized true-up.
Personal expense portions are not grossed up and remain employee responsibility.

Tax Filings and Support

Pre-departure and arrival briefings, annual tax returns in home and host, and year-end reconciliations provided by <Tax Provider>.
Employee must submit required data within <Days> days of request to avoid penalties; late penalties caused by employee delay may be recharged.

Legal Notices

Nothing in this policy alters the at-will employment relationship where applicable.
Tax laws change frequently; benefits may be adjusted to maintain compliance without prior notice.
Employees are responsible for personal tax obligations outside the scope of equalization or protection.

Immigration and Legal Compliance

Work authorization must be obtained prior to travel for work purposes; business visitor status is not a substitute for working.
<Vendor Name> manages visa strategy, document collection, and filings; employee must provide accurate information and attend biometrics as scheduled.
Dependents’ eligibility is determined by host law; spousal work authorization is not guaranteed.
Export control and sanctions screening are mandatory for roles involving restricted technologies or countries; assignments to sanctioned jurisdictions require General Counsel approval.
Data privacy complies with <Regulation, e.g., GDPR>; personal data is processed under Data Processing Agreements with vendors.
Anti-corruption and anti-bribery rules apply; gifts or facilitation payments to officials are prohibited.

Payroll, Currency, and Accounting

Pay Delivery Home payroll continues for base pay; host shadow payroll used for statutory reporting. For PT, host payroll becomes primary.
Split Payroll May be used to meet host obligations and practical needs, with ratios approved by Total Rewards and Finance.
Currency Allowances are denominated in host currency unless otherwise stated. Exchange rates sourced from <FX Source> at <Frequency>.
Accounting All costs are coded to <GL Code> and cost center <Cost Center> and tracked in <System Name> for budgeting and accruals.
Cost Projection A pre-approval cost estimate from <Tax Provider or Mobility Vendor> is required and must be within <Percentage>% of final annualized cost.

Security, Health, and Duty of Care

Risk assessments are required for travel to locations rated <Rating> or higher by <Security Vendor Name>.
Medical coverage, evacuation, and crisis support are provided by <Vendor Name>; employees must register itineraries in <Travel System>.
Emergency protocols and contact numbers must be provided in the Letter of Assignment; participation in safety training is mandatory.

Vendor Management and Service Levels

Approved vendors include relocation management company <Vendor Name>, tax provider <Vendor Name>, immigration counsel <Vendor Name>, cultural training provider <Vendor Name>, and security vendor <Vendor Name>.
Service Level Agreements define response times, quality standards, and data security requirements.
Vendor invoices must reference employee ID <ID>, move ID <Move ID>, and cost center; invoice approval within <Days> days.
Vendors must notify <Company Name> of any data incident within <Hours> hours per the DPA.

Real Property and Housing Support

Home Country Property Optional property management services via <Vendor Name> for LTAs; mortgage payments are employee responsibility unless by exception.
Lease Break Costs Covered with documentation for LTAs and PT up to <Amount>.
Host Lease Support Credit checks, deposits, and realtor fees covered; early termination coverage aligned to assignment end.

Education and Dependent Support

School search and placement assistance provided via <Vendor Name>.
Tuition, mandatory fees, and transportation up to <Amount> per dependent per academic year; boarding not covered unless required by location.
Special education needs considered by exception with documentation and limit of <Amount> annually.

Cost Management and Governance

Budget ownership resides with the requesting business unit; Total Rewards provides cost modeling and tracking.
Standard benefits are capped as stated; amounts above caps require exception approval.
Foreign exchange variances beyond <Percentage>% trigger review and potential adjustments at the next cycle.
ROI tracking may include project outcomes, skill development metrics, and retention measures.

Exceptions Process

Principles

Exceptions are limited to critical business needs or legal compliance and must maintain internal equity.

Submission and Approvals

Manager submits exception request in <System Name> with justification, alternatives considered, and cost impact
Total Rewards reviews alignment with policy and market practice
Finance validates budget and cost
Legal/Tax confirms compliance implications
Approving Body renders decision and documents rationale

Documentation and Audit

All exceptions recorded in the policy exception log with <Reference Number> and retained for <Years> years.
Aggregated exceptions reported to the Approving Body each <Frequency>.

Roles and Responsibilities

Employee

Provide accurate information for immigration and tax; meet deadlines for document submission
Abide by laws of host country and company policies
Manage personal financial obligations and any non-covered expenses
Complete required trainings and attend tax briefings

Manager

Define business need and outcomes; ensure budget availability
Support reintegration and career planning post-assignment
Monitor performance and wellbeing; escalate issues promptly

Total Rewards and Mobility COE

Own policy, market competitiveness, and governance
Conduct cost projections and advise on compensation approach
Coordinate vendors and ensure service delivery
Oversee compliance with payroll, tax, and benefits

HR Business Partner

Advise on talent implications and development plans
Ensure consistent application of eligibility criteria
Facilitate performance management across borders

Payroll and Finance

Operate split and shadow payrolls as required
Manage gross-ups, hypothetical tax, and year-end reconciliations
Track and report costs; ensure appropriate accruals

Legal and Tax

Advise on immigration, labor law, and tax obligations
Approve assignment letters and any non-standard terms
Manage audits and statutory filings with vendors

Vendors

Deliver services per SLAs and protect personal data
Provide accurate, timely reporting and invoices
Escalate risks or compliance issues immediately

Implementation Guidelines

Process Timeline

Planning Begin <Weeks> weeks before expected start date; initiate in <System Name>.
Approvals Complete within <Days> days of submission.
Immigration Typical lead time <Weeks> weeks, varies by <Country>.
Relocation Book shipments <Weeks> weeks prior; temporary housing reserved upon visa approval.
Payroll Setup Shadow payroll and allowances configured within <Days> days of visa issuance.

Documents and Systems

Letter of Assignment, cost projection, immigration approvals, and tax equalization agreement stored in <Document Repository>.
Mobility case tracked in <System Name> with status updates automated to stakeholders.

Payment Cadence

Allowances paid monthly in arrears unless stated otherwise.
One-time payments triggered upon proof of lease, school invoice, or relocation milestone.

Repayment and Clawbacks

If the employee resigns voluntarily or is terminated for cause within <Months> months of start or <Months> months post-relocation, certain relocation and education costs may be subject to repayment per the Letter of Assignment and local law.

Review and Approval Process

Effective Date and Review Cycle

Effective as of <Date>. Reviewed at least annually or upon material changes in law or market practice.
Total Rewards conducts competitive benchmarking and solicits feedback from stakeholders each <Frequency>.

Governance and Change Control

Proposed changes drafted by Total Rewards, reviewed by Legal, Tax, Finance, and Mobility COE, and approved by the Approving Body.
Change log maintained with version, summary of changes, and effective date.

Policy Matrix by Assignment Type

Benefit/Policy Element	Short-Term Assignment (STA)	Long-Term Assignment (LTA)	Permanent Transfer (PT)	Global Commuter	Extended Business Traveler (EBT)
Compensation Method	Home-based pay; per diem where applicable	Balance sheet with hypo tax and GSD	Host-based pay; no GSD	Home-based pay	Home-based pay
Immigration	Required	Required	Required	Required	As needed
Housing	Temporary only up to <Nights> nights	Furnished housing or allowance up to <Amount>/mo	Temporary housing then employee lease	Hotel on travel nights	Hotel on travel nights
GSD/COLA	Not typical	Provided per <Vendor Name>	Not typical	Not applicable	Not applicable
Utilities	Not typical	Provided up to <Amount>/mo	Not typical	Not applicable	Not applicable
Education	Not covered	Covered up to <Amount>/child/year	By exception only	Not applicable	Not applicable
Home Leave	Not typical	Every <Months> months	Not applicable	<Frequency> based on commuting pattern	Not applicable
Tax Policy	Possible equalization if triggered	Equalization default	No equalization	No equalization	No equalization
Shipment	Limited air freight	Surface plus air freight	Surface plus air freight	None	None
Spouse Support	Not typical	Available up to <Amount>	By exception	Not applicable	Not applicable

Risk and Compliance Controls

Pre-travel immigration verification enforced through <Travel System> blocks for non-compliant bookings.
Tax day-count monitoring for EBTs with alerts at <Threshold> days by <Tracking Tool>.
Quarterly audits of shadow payroll and gross-up calculations by <Internal Audit>.
Data retention limits of <Years> years for mobility files, subject to local law.

Frequently Applied Examples

Example 1: LTA to <Host City, Country>

Grade <Grade> employee with spouse and two dependents on a 24-month assignment
Balance sheet applied using <Vendor Name> indices; housing norm <Amount>/mo; utilities <Amount>/mo; GSD updated quarterly
Education capped at <Amount> per child per school year; home leave every <Months> months
Hypo tax deducted at <Percentage>% blended rate; shadow payroll operated in host; annual tax true-up via <Tax Provider>

Example 2: PT to <Host City, Country>

Host-based salary aligned to <Market Data Source> at <Percentile> percentile
One-time relocation and settling-in allowance <Amount>; no GSD or equalization
Enrollment in host benefits effective <Date> with waiting periods per plan terms

Example 3: Global Commuter to <Host City, Country>

Weekly travel with project duration <Months> months
Economy flights per Travel Policy; hotel and per diem; no dependents’ benefits
Day-count tracked to avoid tax residency; if thresholds exceeded, program may be converted to STA or LTA

Glossary of Terms

COLA/GSD Cost of Living Allowance/Goods and Services Differential
CoC/A1 Certificate of Coverage for social security coverage
DPA Data Processing Agreement
EBT Extended Business Traveler
FX Foreign Exchange
LTA Long-Term Assignment
PT Permanent Transfer
RMC Relocation Management Company
R&R Rest and Recuperation
SLA Service Level Agreement
STA Short-Term Assignment

Communication Section: Employee and Manager Guide

Welcome to the <Company Name> Global Mobility Program. This guide explains what you can expect before, during, and after an international move, and how we will support you and your family.

Before your move, your manager and HR partner will confirm the business need and assignment type. You will receive a Letter of Assignment that outlines your assignment dates, compensation approach, benefits, and the assistance vendors who will support you. Please read this letter carefully and ask questions. It is your roadmap.

Immigration comes first. Do not travel for work until your visa or work permit is approved. Our immigration partner, <Vendor Name>, will contact you to collect documents and schedule any required appointments. Accurate and timely information from you helps avoid delays.

A relocation consultant from <Vendor Name> will coordinate your home search, temporary housing, and shipment of household goods. They will walk you through what can be shipped, how items are packed, and timing for delivery. If you have special needs such as school search or language training, your consultant will help plan those services.

If you are on a long-term assignment, you will likely use the balance sheet approach to pay. That means you keep the purchasing power of your home-country pay. You will see a hypothetical tax deduction on your pay, and we will cover your actual home and host taxes. Some benefits, like housing or education, may be taxable; we will typically gross up those taxes so you are not out of pocket. Our tax partner, <Tax Provider>, will explain how this works and help you file your returns.

Housing support varies by location. We will help you find a suitable home within your budget cap and assist with deposits, lease negotiations, and utilities setup. Keep all receipts as some benefits require documentation before payment. If you choose to spend more than your housing cap, the difference will be your responsibility.

Education support is available in many locations for eligible dependents. This usually includes tuition and mandatory fees up to a specific annual limit. Admissions can be competitive in some cities, so start early. Bring school records and immunization documentation with you.

Your safety and wellbeing are a priority. Register your travel in <Travel System> and review the destination briefing from our security partner, <Vendor Name>. In an emergency, follow the contact instructions provided in your Letter of Assignment. You also have access to our Employee Assistance Program for confidential counseling and resources.

We know moving is a family decision. We provide settling-in support and, in many cases, assistance for a spouse or partner, such as career coaching or a stipend. Work authorization for partners depends on host government rules and cannot be guaranteed.

During your assignment, keep track of travel days in and out of the host country. Day-counts can affect your taxes. Respond promptly to <Tax Provider> requests for information. If your family size changes or you move houses, notify the Mobility COE so we can adjust benefits appropriately.

As you approach the end of your assignment, we will help with repatriation or transition to your next location. You will receive guidance on ending leases, scheduling shipments, and final tax steps. Your manager will work with you on reintegration and your next role. If plans change or your assignment is extended, we will update your Letter of Assignment and benefits accordingly.

Costs can be significant. We ask that you use approved vendors, follow the policy, and seek pre-approval for any exceptions. When in doubt, ask your relocation consultant or the Mobility COE before committing to expenses. If you voluntarily leave <Company Name> soon after your move, some relocation costs may need to be repaid, as described in your Letter of Assignment.

Your key contacts are listed in your Letter of Assignment: your relocation consultant, immigration advisor, tax advisor, and the <Company Name> Mobility COE. Save their details and reach out whenever you need help. Our goal is to make your move as smooth and successful as possible so you can focus on your role and your experience abroad.

If you have questions at any point, contact <Mobility COE Email> or your HR Business Partner. We are here to support you.

Document Information:

Document Type: Global Mobility Policy
Category: Perquisites & Programs
Generated: August 25, 2025
Status: Sample Template
Next Review: <Insert Review Date>

Usage Instructions:

Replace all text in angle brackets < > with your company-specific information
Review all sections for applicability to your organization
Customize content to reflect your company's policies and local regulations
Have legal and HR leadership review before implementation
Update document header with your company's version control information
At bottom of the document you find a short example on how the content could be communicated to end-users, for instance employees.

This sample document is provided for reference only and should be customized to meet your organization's specific needs and local legal requirements.