Global Mobility Handbook 2010 Edition Special Edition in support of the important work of the International Organization of Employers Global Mobility Handbook Baker & McKenzie © Baker & McKenzie 2010 All rights reserved. This publication is copyright. Apart from any fair dealing for the purpose of private study or research permitted under applicable copyright legislation, no part may be reproduced or transmitted by any process or means without the prior permission of the editors. Save where otherwise indicated, law and practice are stated in this volume as of September 2010. IMPORTANT DISCLAIMER: The material in this volume is of the nature of general comment only and is not intended to be a comprehensive exposition of all potential issues arising in the contest of a cross-border or multi-jurisdictional transaction, nor of the law relating to such issues. It is not offered as advice on any particular matter and should not be taken as such. Baker & McKenzie, the editors and the contributing authors disclaim all liability to any person in respect of anything done and the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or part of this volume. Before action is taken or decision not to act is made, specific legal advice should be taken in light of the relevant circumstances and no reliance should be placed on the statements made or documents reproduced in this volume. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm. Related Publications Baker & McKenzie’s Bakerimmigration.com web site provides links to current articles, practice group members, and other resources for global mobility professionals. Baker & McKenzie’s Global Migration & Executive Transfers Update is a quarterly publication focused on global mobility issues. Baker & McKenzie’s Global Migration & Executive Transfers Alert is a periodic publication providing timely information on new developments in the global mobility arena. Baker & McKenzie’s The Global Employer is a quarterly publication covering labor, employment, employee benefits, and immigration topics of interest to multinational employers in all of the major jurisdictions of the world. Baker & McKenzie’s Structuring International Transfers of Executives presents an in-depth discussion of compensation issues for expatriates. Baker & McKenzie’s Worldwide Guide to Termination, Employment Discrimination & Workplace Harassment Laws and Worldwide Guide to Trade Unions & Works Councils provide useful information for helping employers manage global business change or expansion. For further details on any of the information in this handbook or to obtain copies of any of the related publications listed above, please contact either of the editors, your Baker & McKenzie contact partner, any of the contributing lawyers listed on the following pages, or any of the Global Migration and Executive Transfers professionals listed at Bakerimmigration.com. Further details on the firm, our people and our practice may be found at www.bakermckenzie.com. About the International Organization of Employers (“IOE”) Headquartered in Geneva, the International Organization of Employers (“IOE”/”OIE”), is long recognized as the only organization at the international level that represents the interests of business in the labour and related social policy fields. Today, it consists of 147 national employer organizations from 140 countries from around the globe. The mission of the IOE is to promote and defend the interests of employers in international fora, particularly in the International Labour Organization (“ILO”), the oldest United Nations body, and to this end works to ensure that international labour and social policy promotes the viability of enterprises and creates an environment favourable to enterprise development and job creation. At the same time it acts as the Secretariat to the Employers’ Group at the ILO International Labour Conference, the ILO Governing Body and all other ILO-related meetings. The IOE is the permanent liaison body for the exchange of information, views and experience among employers throughout the world. It acts as the recognized channel for the communication and promotion of the employer point of view on labour and related social policy issues, to all United Nations agencies and other international organizations. Antonio Peñalosa, Secretary-General, [email protected] Brent Wilton, Deputy Secretary-General, [email protected] Editors’ Note This handbook is a product of the efforts of numerous lawyers throughout Baker & McKenzie and selected local professionals at other firms, including the contributors listed on the following pages. The editors are extremely grateful to these knowledgeable lawyers for their work and keen interest to provide readers with a clearer appreciation of the business and legal considerations associated with global mobility assignments. We want to acknowledge the legacy of retired partner William Kuo. Bill laid the foundation for our global practice and this publication over the many years that he led efforts to develop and publish the firm’s Immigration Manual. C. Matthew Schulz, Editor-in-Chief Tel: +1 650 856 5528 [email protected] Raúl Lara-Maiz, Editor Tel: +52 81 8399 1302 [email protected] Jill M. Bussey, Editor Tel: +1 202 835 1657 [email protected] Special Thanks In selected countries where Baker & McKenzie does not have attorneys handling global mobility matters, we want to give special thanks to the following local professionals who were kind enough to contribute their knowledge and assistance to our clients: Hélène de Bruijin-Jonker of Expatinsight for the Netherlands chapter June Ranson and Beth Taggert of Woburn International for the New Zealand chapter Liam Schwartz and Jennifer Schear of Liam Schwartz & Associates for the Israel chapter Don K.Mun and Kwang Wook Lee of Yoon & Yang LLC for the South Korea chapter Gülperi Yörüker and Emre Ulcayli of Yurttutan Gürel Yörüker for the Turkey chapter Contributors Narendra Acharya, Partner, Carlos Delgado, Partner, Chicago Caracas Aliaga Akhundov, Associate, Ikang Dharyanto, Associate, Baku Jakarta Nasser Alfaraj, Partner, Valerie H. Diamond, Principal, Manama San Francisco Melissa Allchin, Associate, Alan Diner, Associate, Chicago Toronto Denise Broussal, Partner, Carlos Dodds, Principal, Paris Buenos Aires Jill M. Bussey, Associate, Susan Eandi, Principal, Washington DC Palo Alto Ricardo Castro, Partner, David W. Ellis, Partner, Manila Chicago Rita Chowdhury, Sr. Counsel, Ákos Fehérváry, Partner, Sydney Budapest John Connors, Of Counsel, Carlos Felce, Partner, Beijing Caracas Giusmary D’Arrigo, Erwin Fuchs, Associate, Associate, Milan Vienna Catarina De La Barra, Miguel Galvez, Associate, Associate, Santiago Manila Tatiana Garcés Carvajal, Elena Kukushkina, Associate, Partner, Bogota Moscow Ignacio Garcia, Partner, Victoria Kushner, Associate, Santiago Moscow Alethea Giles, Associate, Richard Lam, Associate, Sydney Singapore Tony Haque, Associate, Raúl Lara-Maiz, Associate, London Monterrey Samantha Healey, Associate, Lara Link, Associate, Sydney Frankfurt Annie Huang, Associate, Sheau Yiing Low, Associate, Taipei Kuala Lumpur Joanna Jasiewicz, Lawyer, Pamela Mafuz, Lawyer, Warsaw Madrid Zhi-Xiang Ke, Associate, Mariana Marchuk, Associate, Singapore Kyiv Sinead M. Kelly, Associate, Alessandro M. O. Martins, San Francisco Associate, Brasilia Karin Konstantinovová, Daniel Matthews, Partner, Partner, Prague Baku Ute Krudewagen, Partner, Nobuko Narita, Partner, Palo Alto Tokyo Azamat Kuatbekov, Partner, Oanh Hoang Kim Nguyen, Almaty Partner, Ho Chi Minh Serge Pannatier, Associate, Geneva Chris Tsai, Partner, Taipei Maxime Pigeon, Partner, Paris Iris Van Tilborgh, Associate, Brussels Kelvin Poa, Associate Principal, Singapore Irene Vermeeren-Keijzers, Partner, Amsterdam Piotr Rawski, Partner, Warsaw Antonio Vicoli, Associate, Milan Harun Reksodiputro, Partner, Jakarta Alvira Wahjosoedbjo, Associate, Jakarta Maria Cecilia Reyes, Associate, Bogota Safari Watanabe, Partner, Tokyo C. Matthew Schulz, Partner, Palo Alto Kerry Weinger, Principal, Chicago Grace Shie, Special Counsel, Hong Kong Wei Kwang Woo, Partner, Kuala Lumpur Suzu Tokue, Associate, Tokyo Global Mobility Handbook Table of Contents Section 1 Introduction.................................................................... 1 Section 2 Major Issues................................................................... 6 Immigration................................................................................... 6 Employment................................................................................ 13 Compensation and Employment Benefits................................... 22 Global Equity Compensation...................................................... 42 Income Tax and Social Insurance ............................................... 59 Global Mobility Questionnaire ................................................... 86 Section 3 Country Guide ............................................................. 88 Argentina .................................................................................... 88 Australia.....................................................................................