ey human capital conference 2012: immigration - what you need to know now

2012 Human Capital Conference23–26 October

Immigration: what you need to kknow now

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.

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► The views expressed by panelists in this session are not necessarily those of Ernst & Young LLP

Immigration: what you need to know now

those of Ernst & Young LLP.

Presenters

► George Reis ► Toni Silvestri► Egan LLP► [email protected]

► The Boeing Company► [email protected]

► Edith de Bourgraaf► Ernst & Young Belastingadviseurs LLP► [email protected]

► William Taylor► Adobe Systems Inc.► wtaylor@adobe com► [email protected]

► Wim Cocquyt► Studio Legale Tributario

► [email protected]

► Steven BrownA t► Studio Legale Tributario

► [email protected]► Accenture► [email protected]

► Michelle Kotze► Ernst & Young Middle East► [email protected]


Agenda

► The global environment for immigration► The global environment for immigration► Overview of Boeing Mobility Program► Europe► Europe ► Overview of Adobe Mobility Program► Middle East and Northern Africa► Middle East and Northern Africa► Overview of Accenture Mobility Program► Americas► Americas


The global environment for immigration

Mobility = significantMobility significant political challenges:

Gro ing nrest in often► Growing unrest in often fragile mature (and emerging) marketsemerging) markets

► Cultural challenge► Xenophobia► Values gap between► Values gap between

electorate and governments


governments

Global trends: yet another quantum shift

►

1 2

Shifting economy Accelerating paceShifting economy of globalization

Integrated model Rapid successionof legislative and

34

gfor immigration and tax administration

of legislative and regulatory changes


Global immigration trendsGovernment agenda Corporate agendaGovernment agenda Corporate agenda

Promote growth whilet ti l l l b

Increased global b i t lprotecting local labor business travel

B d itIncreased I d b iBorder security –

utilization of technology focus on immigration

Increased business pressure

Tax/immigration connection for revenue generation

Risk and cost mitigation


Program overviews

BoeingOverview of Global Mobility Programy g

► About Boeing Corporationg p► Scope of Global Mobility Program► Objectives► Objectives► Operation► Challenges► Challenges► Expectations for the future


AdobeOverview of Global Mobility Programy g

► About Adobe► Scope of Global Mobility Program► Objectives► Objectives► Operation► Challenges► Challenges► Expectations for the future


AccentureOverview of Global Mobility Programy g

► About Accenture► Scope of Global Mobility Program► Objectives► Objectives► Operation► Challenges► Challenges► Expectations for the future


Europe

Europe European Economic Area (EEA) members p ( )

► With a few notable exceptions, citizens and permanent p , presidents 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!


EuropeImmigration initiativesg

► Free movement of services► Blue Card Directive► Directive for intra-corporate transfer► Directive for intra corporate transfer► Single Permit Directive► Directive on family reunification► Directive on family reunification► Long-term EU residence status for non-EU nationals► Regulation on restrictive measures against Iran► Regulation on restrictive measures against Iran


EuropeSchengen agreementg g

► Business visitors are limited to 90 days per six-month y pperiod in all Schengen nations combined.

► Currently, the Schengen nations are: Austria, Belgium, y g gCzech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Li ht t i Lith i L b M ltLiechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovenia, Slovakia Spain Sweden and SwitzerlandSlovakia, Spain, Sweden and Switzerland.


NetherlandsHighly skilled migrant programg y g p g

► The purpose of the program is to:p p p g► 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 employeesmigrant employees


NetherlandsFamily reunificationy

► Restriction since 1 October 2012► Only partners who are married or have a registered

partnership can apply:p p pp y► Unmarried partners can no longer apply.


Italy

► Italy has various programs in place:y p g p► Entry quota system for non-EU workers► Limited and restrictive exemptions allowed to quotap q► 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)


ItalySolution – the protocol arrangementp g

► Assignment of highly qualified personnel:g g y q p► Main issues:

► Length of the immigration process: the issuance of the work permit t k th i ht kmay take more than eight weeks.

► Lack of clarity on exact nature of documentation to support the application: local territorial differences.


ItalySolution – the protocol arrangementp 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 gcountry.


Italy Introduction of Blue Card

► Blue Card was introduced in August 2012 – Council gDirective 2009/50/EC.

► Conditions of entry and residence of third-country national y yfor 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 f l i th fi t t i bj t t iof employer in the first two years is subject to prior

approval.► Blue Cards are not available to assignees or family► Blue Cards are not available to assignees or family

members of EU nationals.


Middle East and Northern Africa

Middle East and Northern AfricaIntroduction

► Labor immigration and labor marketg► Demographics of Middle East and North Africa (MENA)► Arab migration into the Gulf Cooperation Council (GCC)► Arab migration into the Gulf Cooperation Council (GCC)

countries► Economic sectors in focus► Average expat population is about 66%► Increase in local unemployment ratesp y► Deficiencies in education skills and language barrier► Developments and significant changes to immigration► Developments and significant changes to immigration

policies


Middle East and Northern AfricaNationalization and quota systemq y

► Kafala system (sponsorship system)y ( p p y )► Saudization, Omanization, Emiratization, etc.► Reduction of dependence on foreign workers► Reduction of dependence on foreign workers► Restriction on employment in specific sectors► Employment quota system in public and private sectors► Employment quota system in public and private sectors► New policies to reduce demand for immigrant labor► Restrictions on visa issuance► Restrictions on visa issuance► Ceiling on immigrant quotas► Rise of employment of “ghost workers”► Rise of employment of ghost workers


Middle East and Northern Africa Regulatory environmentsg y

► Laws developed to improve working conditionsp p g► Progress made to attract foreign investors ► Requirement of local agent for immigration purposes► Requirement of local agent for immigration purposes► Police clearance certificate from home country► Medical clearance certificates from home country► Medical clearance certificates from home country ► Visa on arrival


Middle East and Northern Africa Compliancep

► Substantial documentation requirements and costsq► Mandatory legalization of documents► Liaising with several government agencies► Liaising with several government agencies► Immigration laws constantly adapting to political

landscapep► Timeframes to get work permit/residence permit


Middle East and Northern Africa Facilitation issues

► Non-transparent justice systemp j y► Absence of anti-corruption law► No clear law specifying migrant worker rights► No clear law specifying migrant worker rights► Immigration and labor restrictions on migrant workers► Local knowledge and relationships► Local knowledge and relationships► Discrimination► Dependence on local Public Relations Officer (PRO) or► Dependence on local Public Relations Officer (PRO) or

Government Relations Officer (GRO)


Middle East and Northern Africa Impact of Arab Springp p g

► Political and economic outlook for MENA► Economic freedom and representation► New policies reducing demand for immigrant labor► New policies reducing demand for immigrant labor► Ban on foreign workers from unstable countries► Job creation and pressure on unemployment rates► Job creation and pressure on unemployment rates► Rise in emigration► Political and economic reforms► Political and economic reforms


Americas

United StatesScrutiny, audits, enforcement and penaltiesy, , p

► Increased border scrutiny “expedited removals”y p► 20,000 deported under expedited removal each year

without attorney representationy 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 b f t (fi b f dit d l d )bar of entry (five-year bar for expedited removal orders)

► Consequences for companies: penalty (financial or criminal) blacklisted targeted by government forcriminal), blacklisted, targeted by government for immigration compliance audit and/or refused applicants hamper business plans and objectives


hamper business plans and objectives

United StatesScrutiny, audits, enforcement and penaltiesy, , p

► Who is a “business visitor” in the US: I ki i i i l b i i i i i► Is seeking entry to engage in international business activities, not entering 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► 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.


United StatesU.S. Citizenship and Immigration Servicesp g

► On-site fraud inspections of employer petitionersp p y p► 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► 2011 – 51% RFEs and 14% denials

► L-1B:► 2007 – 17% RFEs and 7% denials► 2011 – 63% RFEs and 27% denials


United StatesH-1B

► Cap met earlier this yearp y► 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 beneficiarytechnical data to beneficiary.


United StatesU.S. Department of Labor (DOL)p ( )

► Increased wage and hour auditsg► Labor Condition Application (LCA) compliance for the

H-1B programp 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 rate


United StatesU.S. Immigration and Customs Enforcement (ICE)g ( )

► Focus shifted from deportation of illegal workers to p gcriminal prosecution of employers

► Increased I-9 audits:► Penalties – up to $11,000 per instance of unauthorized

employment and $16,000 per instance of discrimination

I d id i► Increased raids on companies:► Penalties – up to five years in prison for HR managers, CEOs,

presidents, etc.presidents, etc.

► New taskforce investigating H-1B employers


United StatesU.S. Department of State (DOS)p ( )

► US Consulate in Chennai release new policies/prequirements

► B-1 in lieu of H-1B ► New visa bulletin


United StatesE-Verifyy

► E-Verify is an internet based system in partnership with y y p pSocial Security Administration (SSA)

► Employers can electronically verify employment eligibility p y y y p y g yof 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 petitionswho file nonimmigrant visa petitions


United StatesGlobal entryy

► Expedited clearance for pre-approved, low-risk travelers p p 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► Republic of Korea citizens enrolled in Korean SES program► Canadian citizens and residents enrolled in NEXUS program

► 400 000 global entry members averaging 5 000 kiosk► 400,000 global entry members averaging 5,000 kiosk uses per day at 28 airports

► Phasing out I-94 cards► Phasing out I 94 cards► Discontinue stamping F-1 student’s Form I-20 upon entry


United StatesImmigration legislationg g

► Deferred Action for Childhood Arrivals (DACA)( )► The Comprehensive Immigration Reform Act of 2007► Increased fees for H-1B and L-1► Increased fees for H 1B and L 1► Fraud prevention


CanadaImmigration and Refugee Protection Act (IRPA)g g ( )

► April 2011 changes to IRPAp g► Protect vulnerable foreign workers and ensure program

integrityg y► Consistent trends towards:

► Increased government oversight► Less flexibility► Greater onus on employers to self-monitor

I d lti f li► Increased penalties for non-compliance


CanadaIRPA amendments

► Four-year cap for many categories of foreign workersy p y g g► “Genuineness” of the job offer► Increased compliance reviews► Increased compliance reviews► Information sharing regarding employer non-compliance

or complaintsp► New penalties for employer non-compliance with

immigration laws, including employer “blacklist”


CanadaOther changesg

► Closure of Canadian visa offices (Buffalo, Tehran, ( , ,Belgrade, Berlin, Tokyo, Dhaka and Kuala Lumpur)

► Closure of some local Citizenship and Immigration p gCanada (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 announcedcreation of a Federal Skilled Trade Stream announced► Introduction of minimum language requirements for semi-skilled

workers applying under the Provincial Nominee Program


CanadaIRPA – employer compliancep 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 authorizationwhether a foreign national has adequate work authorization.

► Section 127:► Foreign nationals are barred from directly or indirectly► Foreign nationals are barred from directly or indirectly

misrepresenting any materials facts relating to their activities in Canada.

S ti 126► Section 126:► Employers are barred from counseling foreign nationals to

misrepresent their activities in Canada


misrepresent their activities in Canada.

MexicoChanges to immigration regulationsg 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► 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 f ith t th d f l l th tfour years, without the need for annual renewals that are now in place.


MexicoChanges to immigration regulationsg g g

► New visa quota system will be implemented and limitations on the number of work visas issued is likely to be implemented.C i i i t t M i d► Companies sponsoring assignees to enter Mexico under a work visa that includes remuneration in Mexico, will be required to have a basic registration file with the Mexicanrequired to have a basic registration file with the Mexican tax authorities.

► Visas related to work with salaries paid in Mexico must be► 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.


ArgentinaChanges to immigration lawsg g

► Argentinean Immigration Authority (DNM) sharing g g y ( ) gdatabase information with tax authorities (AFIP).

► “Premium” fee to obtain an appointment request for pp qtemporary 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 ofunless otherwise authorized. This causes difficulty at the end of the assignment or when they need to transfer money to their home country.


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 residenceresidence

► The new Chilean immigration system will contain three pillars:pillars:► Flexible rules► Improvement of quality of service and processing times by p q y p g y

immigration authorities ► Launching of new immigration technology system (e.g., tracking)


Questions


ey human capital conference 2012: immigration - what you need to know now

Business

global environment

global trends

internal immigration

disclaimer ernst young

program overviews

increased business

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