Achim Heuser, Heuser & Collegen, wrote a very popular article for ExpatExchange. It provides an overview of key points to be covered during contract negotation. Below is a brief version of the full article entitled, Negotiating the best package for your next assignment.
1. Duration of assignment: Whether the expatriate is unaccompanied or relocating with his spouse and/or family, he needs a perspective of the assignment's duration. If this is to be determined by the completion of a specified objective, at least an estimated duration, including a minimum term, should be given. The contract should also specify whether there is a trial period and how long that period lasts.
2. The assigned capacity: The contract should specify exactly the duties and give details of the responsibilities and the goals expected to be achieved.
3. Salary: The contract should at least specify the gross annual salary, any likely or possible bonuses and the salary structure in terms of increases. Any possible hardships should be considered as well and possibly included in the salary provisions.
4. Tax liability: Who will be paying taxes and in which country? Will the expatriate become a fiscal resident of the host country or still be liable for taxes in his home country?
5. Social Security: What provisions does the company make for pension and protection in the case of unemployment?
6. Moving costs: The contract must include details of the reimbursement of moving expenses. Will a transportation insurance be granted as well? Who will take care of the necessary customs declaration?
7. Housing and interim living allowance: What type of housing will be provided and how long will the expatriate and his family be expected to spend in short-term housing should be specified in advance and should be kept in mind by both parties. Who is responsible for finding suitable accommodation?
8. Transport: Will there be a company car provided for the duration of the assignment? Will this also include personal use?
9. Tuition fees: Contracts should include whether this assistance is partial or total reimbursement of fees.
10. Annual Leave and Home Leave: National holidays and annual vacation periods differ from country to country. The expatriate should be able to verify how much annual leave he will receive.
11. Legislation: What is the applicable legislation pertaining to the contract and which courts have jurisdiction for determining any conflict?
