There are a few key points to consider when signing a contract. Fortunately most expatriates have been on the circuit long enough to know them, but for those who have recently become expatriates or for many of us who would like a gentle reminder, here are some of the more pertinent points. Employment Terms
Ensure that your terms of employment are clear and agreed in writing, with particular emphasis on the following:
Job Description
Hours of work
Bonus entitlement
Overtime
As an expatriate it is not unusual to be working a 90-hour week. However, it is often the case that paid overtime offered casually at interview, is often unpaid or non-existent. Accommodation
You may be offered 'suitable' accommodation, but by whose standards? It may be single or shared accommodation, an apartment or house on a compound. Find out if it is rent-free or subsidised and if utilities are included.
If you have to find your own accommodation, you may also have a hefty deposit to find. Worse still, in some countries you have to pay rent at least 12 months in advance. If the accommodation is unfurnished you will also need to consider the cost of moving furniture abroad or perhaps buying furniture and appliances when you are in situ - who will pay for this?
Think also about the possibility of having to break your contract in an emergency situation - the deposit and rent advance may not be refundable. Healthcare
Is medical insurance being provided by your prospective employer? Are you also covered outside working hours and on leave? Can it be extended to include your family if they are with you? Check your salary status in the event of illness or accident - you may be laid off for months.
ExpatNetwork strongly recommends that expatriates arrange their own medical insurance (if not being provided by the employer) and seriously consider adding 'income protection' cover. Transport
Some form of transport is usually provided. This could mean a chauffeur driven saloon, a four-wheel drive or a shared/pooled vehicle. It may just be a travel allowance. Your transport may be limited to the hours you actually work, and not available to you out of working hours. Check the insurance arrangements in detail and ensure you are fully covered to drive the vehicle at all times. Finally, check that you have the necessary driving license for the country. Single/Married Status
If you are considering married status, find out if the country is suitable for a family. Will your wife/husband be able to work too? Will your family be able to adapt to the local climate and customs, which can sometimes be prohibitive? What education facilities are there for your children? (This can be very expensive overseas, so you need to know the costs before you decide whether your contract is going to be financially viable).
If you are offered single status with the assurance that your family can join you later, ensure that you get this written into your contract. Leave and Holiday Entitlements
How many days leave will you get per year and are they paid? Does your contract state that all flights are included, both outward and return? Are all family flights covered?
Working offshore? The tempting 28 days on/28 days off contract may actually mean that you are only reimbursed for the 28 days actually worked. Relocation
Who pays for shipping your furniture and belongings, including the trip home at the end of the contract? Who insures the items against damage or loss? Salaries
If asked what salary you want, always ask the prospective employer to give you an indication of the going rate. They are in the business of employing people so they are in a good position to advise you.
A prospective employer will rarely offer the maximum salary. All employers have a budget range - upper level is usually as much as 50% higher than the lower level. In some companies that range is higher depending on the demand and market conditions.
In what currency are you being paid? Sterling or US dollars to an offshore bank account could well be your best option. If you are paid in local currency and it is devalued you may be severely out of pocket, which could affect your financial commitments back home.
Check any salary comparisons you can find. Some countries pay significantly higher salaries but also have a higher cost of living.
Never enter into agreements whereby the employer states he will not declare taxes. You can enter into a tax-free agreement but if you do, ensure that the agreement clearly states net of tax in the remuneration clause. Therefore, if the employer changes their mind, any tax owed is their responsibility. They will have to adjust your remuneration accordingly or pay the tax for you.
Does the country require you to pay local taxes or does it have a reciprocal agreement with your country of residence?
Find out the costs of essential everyday goods like petrol, food, parking, entertainment and utilities. Knowing this kind of information will help you weigh up the real value of the salary package. Escape Clause
If you are on a short-term contract, there may not be a legal option to terminate. One or two year contracts usually require at least 28-days notice, and you may also have to bear the cost of repatriation. What will happen to your money in this event - especially the bonuses? Signing the Contract
Only sign on the dotted line if you are 100% happy with the terms and conditions on offer and have ensured that any verbal amendments have been written into the contract. Always bear in mind that your contract is not effective until you arrive on site and, if for any reason your contract is cancelled, you may not be entitled to any compensation.
Bon Voyage...
Signing on the dotted line... Contract Check-listMedical Insurance
Full medical insurance should be provided (including being returned to your country of residence if adequate medical facilities are not available).
Some policies decree that visiting a medical centre is your cost unless you are dying. This can be very expensive. If your employer is reluctant to cover the cost, tell them you will obtain your own medical insurance and invoice them accordingly. If the company agrees to reimburse you, ensure this is written into your contract.
Housing
The type of accommodation should be specified, including the country it applies to. For example, is it of western standard?
If you are relocating with your family ensure the company will pay the shipping and travel costs for the outward and return journey.
Salary
Determine the number of actual working days in a year, taking into consideration public, bank and local holidays. Negotiate your rate on this basis and not on a monthly basis. Also ensure that your religious holidays and beliefs are not compromised.
Your salary should be paid on submission of signed timesheet.
Overtime, if applicable, should be specified as to when it will be paid (usually a month in arrears). Alternatively some arrangement should be considered if overtime is not paid for example, time off in lieu on vacation (not locally).
Travel
Airline ticket should be to your nearest point of origin.
It is useful to have a clause which states that either tickets or the equivalent sum in cash will be provided by the company. This overcomes any problems if you do not wish to return to your home country.
Completion Bonuses
If it is not agreed that the bonus is paid at the end of the contract, they are usually worthless.
Never agree to a bonus that is paid on the basis of satisfactory completion - the interpretation is purely subjective.
Leave Entitlement
The number of leave days off should be clearly specified (ensure that a minimum of one month's leave is written into the contract). If not, the employer may take advantage and you could lose out.
Termination Clause
Ensure this is clearly specified. Usually one month or 28 days, this is your protection against the contract not being suitable, and puts some responsibility on the employer.
Currency
Try and fix your salary to a stable currency.
Other Tips
Arrange health plans for the family (including dentistry)
Investigate professional indemnities
Protect your professional development
Think about periods of unemployment between contracts
Consider the effect that working abroad will have on taxes and pensions.
Read the contract carefully yourself
If the contract is not in English ensure the translation you read is authorised by the actual contract holders
Keep a copy of the authentic contract or authorised translation with you at all times
Tackle any contract/agreement problems immediately
Be fair and be reasonable - site and local amenities often fall far short of home standards
Copyright of Expatriate Network. The original article can be found at http://www.expatnetwork.com Reprinted with permission.
