The legal and tax status of expatriates

At the heart of globalization, mobility has become a key success factor, both for companies going global and for individuals concerned with their personal development and career progression. With globalization in all its forms, a growing number of individuals, men and women, young and old, are living temporarily or permanently outside their country of origin. They may be students, retirees or, of course, salaried employees, who are referred to as "mobile" or expatriates. The number of employees temporarily working in a country other than the one in which they are usually employed, or being recruited locally, continues to rise in absolute terms. It should be noted, however, that the profiles and missions of expatriates are evolving, and that employers are tending to go beyond the bi-country model (sending a Frenchman to another country), and to favor the movement of personnel and the on-site development of local talent. At Schneider Electric, for example, only 84 out of a worldwide workforce of 114,000 are covered by an international mobility status. The same decline can be observed among the senior executives of globalized French groups, who are no longer necessarily French, even in emerging countries. There has also been a certain evolution in practices: the number of trips is tending to fall, due to the cost and risks involved, as well as the increased use of videoconferencing; but on-site travel often remains the only solution in the case of ultra-confidential dossiers.

Let's start with a few words about terminology. We speak of expatriation, secondment, international transfer, international assignment, secondment abroad, mobile employee, but these terms do not cover any uniform status or precise legal reality.

The words "seconded", "expatriate" and "mobile employee" are used in a general and sometimes indiscriminate way. In fact, there is only one field in which definitions are precise and which corresponds to a very specific status: that of social protection. Elsewhere, these designations do not cover any uniform status, and the criterion is rather whether or not the workplace has been transferred. In the case of travel, even if long and numerous, there is no transfer, as the work continues to be "localized" in the country of origin. On the other hand, if the contract is performed abroad, even for a short period, there is a transfer of the workplace. What's more, the legal situation of a seconded employee can become confused when company practices replace or supplement, rightly or wrongly, the applicable legal rules. The result can be a complex meccano of applicable rules and practices. However, good management of these aspects is essential for the company, and to protect and enhance the value of the employee who agrees to work abroad.

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