Expat Contract Negotiation - Factors to consider

Expat Contract Negotiation - Factors to consider
Updated on
February 13, 2023

Although there are impressive opportunities for foreigners, many countries are opting to hire homegrown talent. Therefore, foreigners have to be outstandingly better than the competition and sometimes willing to compromise a few demands. Nevertheless, there are still very important clauses in a foreigners contract, that should not be compromised.

Basic salary

Expat negotiations should start by clearly determining remuneration. Base salary is so important that it could sometimes use a specialist in salary benchmarking. Openly discussing remuneration benefits all parties involved by ensuring that the foreigners receives a fair salary and providing the company with insight on salary packages that attract talented employees.Before going for a contract negotiation meeting, one should have all the information they might need. Know the fair market-related salary, have a clear set of demands and come with something to back up your requests. Also, use the cost of living in your potential employee's country to come up with the perfect base salary for you.

Consumer index

The cost of living in your potential country f work can be used to justify your salary demands. Housing is the most expensive cost for expats. For instance, in Dubai, housing is really expensive, while other things are fairly priced. However, if your employer is already paying your housing, remove the cost of living from reasons why you should get a rise.Before you start voicing your demands, make certain that you have done thorough research on what will be your highest expense by either visiting or contacting people in your destination. Back up your argument with proof of quotes and invoices. With the internet, it is now possible to connect with other expats in your destination and ask them about the area.

Housing and accommodation allowance

Housing and accommodation is perhaps the most expensive and intricate part of moving to a new destination. It is possible to relocate to a place, only to find that the only housing you can afford is of less quality than what you have left behind. In India, there have been cases of foreigners having top live in poorer conditions, which is demoralising.Discuss with your company to find out what form of housing assistance will be offered to you. Accommodation might come in form of allowance to be spent in housing on monthly basis, an already paid-for accommodation in a flat, villa or sq or an apartment owned by the company.

Residency permits and work visas

It is uncommon for foreigners to have to negotiate or pay for their residency permits for work visas. In most countries, companies are required to justify the foreigners' employment by submitting all the necessary documents to local authorities.

Education and Schooling expenses

The company that is relocating you is obligated to look after your family if you have any. This means that the company should contribute to or cover part of tuition fees at international schools in your destination. Whether you are going to Malta or Italy, the cost of education in international schools is notably high. If you have a family and tuition fee is not included in the contract, it can cause a significant pinch in your salary. Before signing the contract, have an idea of which schools your family will attend and if they are affordable.

Healthcare allowances

Most countries don't have sufficiently adequate public health facilities and private health care is expensive. In such instances, foreigners should ensure that there is a comprehensive ,medical insurance plan in place.It is essential that foreigners remember that insurance policies differ, from one country to another. Discuss all the details of the health insurance like premiums and co-pays. What should happen in the case of a medical emergency in your family? If you get sick, will the initial payment be in cash from your pockets and will you be reimbursed later? Enquire which medical or rescue assistance you will receive in the event of natural disasters or catastrophies.

Transport allowance

It is rare to find a relocating company that offers motor vehicles to foreigners. However, you can negotiate for a driver's allowance. In some developing countries, driving yourself around town is risky and navigating is stressful. If you have a choice, pick a four-wheel drive vehicle to help you cope with bad roads and rough terrain.

Vacations and return flights

It is expected that you will want to fly to and fro your home country. The perfect contract should include flights home during holidays and an annual return ticket for the whole family. Also, make sure that you understand whether you will be paying first and then reimbursed by the company. Negotiate for a significant amount or rest time after flying, so that you do not have to jump straight from the plane into work.Want to find cheap flights? Check out our guide.

Hardship allowances

In addition to the basic salary, most foreign employees are given hardship allowance. Foreigners can use 'hardship' as a negotiating bit for extra pay. Still, you will have to prove that you will actually undergo hardships. While arguing your case, outline factors like crime, pollution and infrastructure.

In summary

Foreign workers should approach the a contract negotiation while armed with information. Informed experts are more likely to walk away with better deals than the ones who go into negotiation blindly. Make sure that you have comprehensive knowledge of the potential destination by checking weather reports, general news, doing research on the internet and talking to other foreigners in the area.Foreigners are further advised to hold their negotiating strings until the offer is declared concrete. Making so many demands at an interview can discourage the employer from even giving you the job. Once you are sure the offer is solid, list down everything you will need and face your employer with your demands. An extra tip, always start negotiations by asking for higher than what you need. That way, after the contract negotiation, you will agree on something close to what you initially wanted in your contract.

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