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EY Human Capital Conference 2012: Immigration - what you need to know now


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Global employee mobility – this presentation covers the global environment for immigration and global immigration trends plus an overview of the current polices and immigration laws in Europe, the Middle East and Northern Africa, and the Americas.

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EY Human Capital Conference 2012: Immigration - what you need to know now

  1. 1. 2012 Human Capital Conference23–26 October Immigration: what you need to know now
  2. 2. Disclaimer► Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited located in the US.► This presentation is ©2012 Ernst & Young LLP. All rights reserved. No part of this document may be reproduced, transmitted or otherwise distributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP. Any reproduction, transmission or LLP reproduction distribution of this form or any of the material herein is prohibited and is in violation of U.S. and international law. Ernst & Young LLP expressly disclaims any liability in connection with use of this presentation or its contents by any third party.► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP LLP.Page 2 Immigration: what you need to know now
  3. 3. Presenters► George Reis ► Toni Silvestri ► Egan LLP ► The Boeing Company ► ►► Edith de Bourgraaf ► William Taylor ► Ernst & Young Belastingadviseurs LLP ► Adobe Systems Inc. ► ► wtaylor@adobe com► Wim Cocquyt ► Steven Brown ► Studio Legale Tributario ► Accenture A t ► ►► Michelle Kotze ► Ernst & Young Middle East ► michelle.kotze@ae.ey.comPage 3 Immigration: what you need to know now
  4. 4. Agenda► The global environment for immigration► Overview of Boeing Mobility Program► Europe► Overview of Adobe Mobility Program► Middle East and Northern Africa► Overview of Accenture Mobility Program► AmericasPage 4 Immigration: what you need to know now
  5. 5. The global environment for immigrationMobility = significantpolitical challenges:► Growing nrest Gro ing unrest in often fragile mature (and emerging) markets► Cultural challenge► Xenophobia► Values gap between electorate and governmentsPage 5 Immigration: what you need to know now
  6. 6. Global trends: yet another quantum shift► 1 2 Accelerating pace Shifting economy of globalization Rapid succession Integrated model g of legislative and for immigration and tax administration regulatory changes 4 3Page 6 Immigration: what you need to know now
  7. 7. Global immigration trendsGovernment agenda Corporate agenda Promote growth while Increased global protecting local l b t ti l l labor business t b i travel l Increased Border B d security – it Increased business I db i focus on pressure utilization of technology immigration Tax/immigration connection Risk and cost for revenue generation mitigationPage 7 Immigration: what you need to know now
  8. 8. Program overviews
  9. 9. BoeingOverview of Global Mobility Program y g► About Boeing Corporation g p► Scope of Global Mobility Program► Objectives► Operation► Challenges► Expectations for the futurePage 9 Immigration: what you need to know now
  10. 10. AdobeOverview of Global Mobility Program y g► About Adobe► Scope of Global Mobility Program► Objectives► Operation► Challenges► Expectations for the futurePage 10 Immigration: what you need to know now
  11. 11. AccentureOverview of Global Mobility Program y g► About Accenture► Scope of Global Mobility Program► Objectives► Operation► Challenges► Expectations for the futurePage 11 Immigration: what you need to know now
  12. 12. Europe
  13. 13. EuropeEuropean Economic Area ( p (EEA) members )► With a few notable exceptions, citizens and p p , permanent residents of one member country may generally work in another member country without a work permit.► Residence permit may still be needed.► Not all countries in Europe are in the EEA!Page 13 Immigration: what you need to know now
  14. 14. EuropeImmigration initiatives g► Free movement of services► Blue Card Directive► Directive for intra corporate transfer intra-corporate► Single Permit Directive► Directive on family reunification► Long-term EU residence status for non-EU nationals► Regulation on restrictive measures against IranPage 14 Immigration: what you need to know now
  15. 15. EuropeSchengen agreement g g► Business visitors are limited to 90 days per six-month y p period in all Schengen nations combined.► Currently, the Schengen nations are: Austria, Belgium, y g g Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lith Li ht t i Lithuania, L i Luxembourg, M lt b Malta, Netherlands, Norway, Poland, Portugal, Slovenia, Slovakia, Spain, Slovakia Spain Sweden and Switzerland Switzerland.Page 15 Immigration: what you need to know now
  16. 16. NetherlandsHighly skilled migrant p g g y g program► The purpose of the p g p p program is to: ► Reduce employer administrative burden during application process ► Focus on internal immigration process to ensure compliance ► Increase scrutiny ► Intensify penalties for non-compliance ► Reduce the risk of losing sponsorship rights for highly skilled migrant employeesPage 16 Immigration: what you need to know now
  17. 17. NetherlandsFamily reunification y► Restriction since 1 October 2012► Only partners who are married or have a registered p partnership can apply: p pp y ► Unmarried partners can no longer apply.Page 17 Immigration: what you need to know now
  18. 18. Italy► Italy has various programs in p y p g place: ► Entry quota system for non-EU workers ► Limited and restrictive exemptions allowed to q p quota ► Since November 2010, the Italian government has not issued the general decree with entry quotas ► Except for specific categories of workers/entries (e.g., quotas for seasonal workers, students, internships and professional training) g)Page 18 Immigration: what you need to know now
  19. 19. ItalySolution – the protocol arrangement p g► Assignment of highly q g g y qualified p personnel: ► Main issues: ► Length of the immigration process: the issuance of the work permit may t k more th eight weeks. take than i ht k ► Lack of clarity on exact nature of documentation to support the application: local territorial differences.Page 19 Immigration: what you need to know now
  20. 20. ItalySolution – the protocol arrangement p g► The protocol arrangement: p g ► Allows accelerated immigration process ► Benefits: ► Issuance of work permits becomes a purely internal bureaucratic matter, sent directly to the competent Italian Consulate for preparation of work visa. ► Allows for a more timely processing of the application: approximately four to five weeks. ► In principle, the supporting documentation is the same throughout the p p , pp g g country.Page 20 Immigration: what you need to know now
  21. 21. ItalyIntroduction of Blue Card► Blue Card was introduced in August 2012 – Council g Directive 2009/50/EC.► Conditions of entry and residence of third-country national y y for the purpose of highly qualified employment.► If able to demonstrate highly qualified profile, exemption from limits of entry quotas is possible.► Same treatment as an Italian national; however, change of employer in th fi t two years is subject to prior f l i the first t i bj t t i approval.► Blue Cards are not available to assignees or family members of EU nationals.Page 21 Immigration: what you need to know now
  22. 22. Middle East and Northern Africa
  23. 23. Middle East and Northern AfricaIntroduction► Labor immigration and labor market g► Demographics of Middle East and North Africa (MENA)► Arab migration into the Gulf Cooperation Council (GCC) countries► Economic sectors in focus► Average expat population is about 66%► Increase in local unemployment rates p y► Deficiencies in education skills and language barrier► Developments and significant changes to immigration policiesPage 23 Immigration: what you need to know now
  24. 24. Middle East and Northern AfricaNationalization and quota system q y► Kafala system (sponsorship system) y ( p p y )► Saudization, Omanization, Emiratization, etc.► Reduction of dependence on foreign workers► Restriction on employment in specific sectors► Employment quota system in public and private sectors► New policies to reduce demand for immigrant labor► Restrictions on visa issuance► Ceiling on immigrant quotas► Rise of employment of “ghost workers ghost workers”Page 24 Immigration: what you need to know now
  25. 25. Middle East and Northern AfricaRegulatory environments g y► Laws developed to improve working conditions p p g► Progress made to attract foreign investors► Requirement of local agent for immigration purposes► Police clearance certificate from home country► Medical clearance certificates from home country► Visa on arrivalPage 25 Immigration: what you need to know now
  26. 26. Middle East and Northern AfricaCompliance p► Substantial documentation requirements and costs q► Mandatory legalization of documents► Liaising with several government agencies► Immigration laws constantly adapting to political landscape p► Timeframes to get work permit/residence permitPage 26 Immigration: what you need to know now
  27. 27. Middle East and Northern AfricaFacilitation issues► Non-transparent j p justice system y► Absence of anti-corruption law► No clear law specifying migrant worker rights► Immigration and labor restrictions on migrant workers► Local knowledge and relationships► Discrimination► Dependence on local Public Relations Officer (PRO) or Government Relations Officer (GRO)Page 27 Immigration: what you need to know now
  28. 28. Middle East and Northern AfricaImpact of Arab Spring p p g► Political and economic outlook for MENA► Economic freedom and representation► New policies reducing demand for immigrant labor► Ban on foreign workers from unstable countries► Job creation and pressure on unemployment rates► Rise in emigration► Political and economic reformsPage 28 Immigration: what you need to know now
  29. 29. Americas
  30. 30. United StatesScrutiny, audits, enforcement and penalties y, , p► Increased border scrutiny “expedited removals” y p► 20,000 deported under expedited removal each year without attorney representation y p► Risk for business visitors (B-1 business entry visa or through a visa waiver program)► May be refused entry, expedited removal, uncomfortable interrogation, penalty (financial or criminal) and/or future bar f t (fi b of entry (five-year b for expedited removal orders) bar f dit d l d )► Consequences for companies: penalty (financial or criminal), blacklisted, criminal) blacklisted targeted by government for immigration compliance audit and/or refused applicants hamper business plans and objectivesPage 30 Immigration: what you need to know now
  31. 31. United StatesScrutiny, audits, enforcement and penalties y, , p► Who is a “business visitor” in the US: ► Is I seeking entry to engage i i ki in international b i i l business activities, not entering i ii i local labor market ► Is the main source of employment income must remain outside the US ► Cannot participate in the production of goods or provision of services► Examples of acceptable reasons for entry: ► Attending meetings with business associates ► Giving or receiving intra-company training ► Attending public conferences or seminars ► Meeting with prospective clients for work to be performed outside of the US► A recommended best practice is that business visitors carry letter of p y invitation.Page 31 Immigration: what you need to know now
  32. 32. United StatesU.S. Citizenship and Immigration Services p g► On-site fraud inspections of employer p p p y petitioners► Requests for Evidence (RFE) and denials especially of L-1A and L-1B petitions: p ► L-1A: ► 2007 – 24% RFEs and 8% denials ► 2011 – 51% RFEs and 14% denials ► L-1B: ► 2007 – 17% RFEs and 7% denials ► 2011 – 63% RFEs and 27% denialsPage 32 Immigration: what you need to know now
  33. 33. United StatesH-1B► Cap met earlier this y p year► Export Control Certification by employer (as of 20 February 2011) to confirm that: y ) ► They have reviewed the designated regulations and determined if they will require a license to release controlled technology or technical data to beneficiary beneficiary.Page 33 Immigration: what you need to know now
  34. 34. United StatesU.S. Department of Labor ( p (DOL) )► Increased wage and hour audits g► Labor Condition Application (LCA) compliance for the H-1B program p g► Awards of back wages, penalties and interest► Audit and supervised recruitment of PERM cases: p ► 29% audited ► 50% – 55% of audits denied ► National approval rate of approximately 50% ► Supervised recruitment cases have an 11% certification ratePage 34 Immigration: what you need to know now
  35. 35. United StatesU.S. Immigration and Customs Enforcement ( g (ICE) )► Focus shifted from deportation of illegal workers to p g criminal prosecution of employers► Increased I-9 audits: ► Penalties – up to $11,000 per instance of unauthorized employment and $16,000 per instance of discrimination► Increased raids on companies: I d id i ► Penalties – up to five years in prison for HR managers, CEOs, presidents, etc.► New taskforce investigating H-1B employersPage 35 Immigration: what you need to know now
  36. 36. United StatesU.S. Department of State ( p (DOS) )► US Consulate in Chennai release new policies/ p requirements► B-1 in lieu of H-1B► New visa bulletinPage 36 Immigration: what you need to know now
  37. 37. United StatesE-Verify y► E-Verify is an internet based system in partnership with y y p p Social Security Administration (SSA)► Employers can electronically verify employment eligibility p y y y p y g y of newly hired employees► Employees can use data mining techniques to investigate participants.► Participation is required for federal contractors: ► Several states have mandated use ► There is proposed legislation to mandate E-Verify for all employers who file nonimmigrant visa petitionsPage 37 Immigration: what you need to know now
  38. 38. United StatesGlobal entry y► Expedited clearance for p p pre-approved, low-risk travelers pp , arriving in the US: ► US citizens/ Lawful Permanent Residents (LPRs) ► Mexican citizens ► Dutch citizens enrolled in Dutch Privium program ► Republic of Korea citizens enrolled in Korean SES program ► Canadian citizens and residents enrolled in NEXUS program► 400,000 400 000 global entry members averaging 5 000 kiosk 5,000 uses per day at 28 airports► Phasing out I-94 cards I 94► Discontinue stamping F-1 student’s Form I-20 upon entryPage 38 Immigration: what you need to know now
  39. 39. United StatesImmigration legislation g g► Deferred Action for Childhood Arrivals (DACA) ( )► The Comprehensive Immigration Reform Act of 2007► Increased fees for H 1B and L-1 H-1B L1► Fraud preventionPage 39 Immigration: what you need to know now
  40. 40. CanadaImmigration and Refugee Protection Act ( g g (IRPA) )► April 2011 changes to IRPA p g► Protect vulnerable foreign workers and ensure program integrity g y► Consistent trends towards: ► Increased government oversight ► Less flexibility ► Greater onus on employers to self-monitor ► Increased penalties f non-compliance I d lti for liPage 40 Immigration: what you need to know now
  41. 41. CanadaIRPA amendments► Four-year cap for many categories of foreign workers y p y g g► “Genuineness” of the job offer► Increased compliance reviews► Information sharing regarding employer non-compliance p or complaints► New penalties for employer non-compliance with immigration laws, including employer “blacklist”Page 41 Immigration: what you need to know now
  42. 42. CanadaOther changes g► Closure of Canadian visa offices (Buffalo, Tehran, ( , , Belgrade, Berlin, Tokyo, Dhaka and Kuala Lumpur)► Closure of some local Citizenship and Immigration p g Canada (CIC) offices► Foreign nationals presently in Canada can now apply for temporary resident visas from within Canada: ► Proposed changes to the Federal Skilled Worker Stream and the creation of a Federal Skilled Trade Stream announced ► Introduction of minimum language requirements for semi-skilled workers applying under the Provincial Nominee ProgramPage 42 Immigration: what you need to know now
  43. 43. CanadaIRPA – employer compliance p y p► Section 124(1): ( ) ► Employers are barred from employing foreign nationals without proper work authorization.► Section 124(2): ► Employers must exercise reasonable due diligence to determine whether a foreign national has adequate work authorization authorization.► Section 127: ► Foreign nationals are barred from directly or indirectly misrepresenting any materials facts relating to their activities in Canada.► Section 126: S ti 126 ► Employers are barred from counseling foreign nationals to misrepresent their activities in Canada Canada.Page 43 Immigration: what you need to know now
  44. 44. MexicoChanges to immigration regulations g g g► Published 28 September 2012 in the Federal Official Gazette. p► Substantial changes effective in 30 business days.► Now four major visa categories for Mexico: ► Visitors without permission for remunerated work paid in Mexico (180 days or less) ► Visitors with permission for remunerated work in Mexico (180 days or less) ► Temporary resident (more than 180 days but less than four years) ► Permanent resident► Qualifying foreigners will be able to apply work visas for up to four years, without the need for annual renewals that are now f ith t th df l l th t in place.Page 44 Immigration: what you need to know now
  45. 45. MexicoChanges to immigration regulations g g g► New visa quota system will be implemented and limitations on the number of work visas issued is likely to be implemented.► Companies sponsoring assignees t enter M i under a C i i i to t Mexico d work visa that includes remuneration in Mexico, will be required to have a basic registration file with the Mexican tax authorities.► Visas related to work with salaries paid in Mexico must be initiated with Mexican immigration authorities. Consulates abroad retain authority to issue only certain work-related visas in case of foreigners being paid from abroad.Page 45 Immigration: what you need to know now
  46. 46. ArgentinaChanges to immigration laws g g► Argentinean Immigration Authority ( g g y (DNM) sharing ) g database information with tax authorities (AFIP).► “Premium” fee to obtain an appointment request for pp q temporary and permanent visa requests is now up to 36 hours.► Exchange restrictions: ► Foreign workers must be paid in Argentinean currency (pesos), unless otherwise authorized This causes difficulty at the end of authorized. the assignment or when they need to transfer money to their home country.Page 46 Immigration: what you need to know now
  47. 47. Chile► Current proposed changes to immigration law: p p g g ► New bill will be sent this year to Chilean Congress for approval during the next year► New law will include changes to all visa categories, including tourists, working, temporary and permanent residence► The new Chilean immigration system will contain three pillars: ► Flexible rules ► Improvement of q p quality of service and p y processing times by g y immigration authorities ► Launching of new immigration technology system (e.g., tracking)Page 47 Immigration: what you need to know now
  48. 48. QuestionsPage 48 Immigration: what you need to know now