INTERNATIONAL ASSIGNMENT POLICY

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INTERNATIONAL ASSIGNMENT POLICY

Introduction International assignments are defined as those where the individual will spend between twelve months and four years in the host location (for assignments of less than twelve months, please refer to the Short Term International Assignment Policy). These are necessary for example, to allow for the transfer of skills, knowledge or experience not currently available in the host location, provide overseas news coverage, and/or to develop an individual for success in their role in the home location. If there is an extension of duration past the four year period, approval is needed from the divisional head of HR as localisation of the assignee may be appropriate at that time.

The assignee will receive an assignment letter summarising the terms and conditions of the assignment. The assignee is expected to abide by the terms and conditions of employment prevailing in the home country of employment. In the event of a dispute, the home country Human Resources policy for handling grievance or disciplinary issues will be invoked.

Although assignments may be offered, whether or not the assignment can (and when it can) proceed, will be dependent on receipt of the appropriate host country visa/work permit documentation. The period of notice for the end of assignment will be three months either side. The BBC will notify the assignee of the pending end of assignment at the three month point and will seek to clarify precise details of the return to the home country or subsequent extension/new assignment.

Exceptions to this policy It is the BBC’s intention to minimise exceptions to policy wherever possible. Flexibility has been built into the benefit provision wherever practical and possible to assist in meeting the assignees individual circumstances. Any exceptions must be reflected against what is reasonable, consistent, transparent and cost effective for the BBC. Exceptions to this policy will need prior approval from the Senior Manager Remuneration Committee and the Divisional Head of HR (or the appropriate delegate within the BBC division).


International Assignment Policy Last Updated: January 2015

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1 Assignment letter

The terms and conditions of the assignment will be clearly set out in the assignment letter which is issued centrally by the BBC’s International Assignments team. The letter and the terms of the relevant policy should be used to provide the understanding of the policy applicable. Before any of the assignment terms and conditions become effective, the assignment letter must be signed and dated by the BBC and the assignee to confirm agreement to the terms. A copy of the assignment letter will be provided to the BBC’s nominated tax return provider, who the assignee must use throughout the assignment for authorised tax returns.

The assignment letter will state as a minimum the details of the terms and conditions of the assignment. This will include but will not be limited to:

Home country;

Host country;

The assignee’s role and reporting lines during the assignment;

Confirmation of the assignee’s remuneration and benefits at the start of the assignment;

The anticipated length of the assignment and the expected start date;

The notice period (from both sides);

The relevant contacts at the start of the assignment. All of the assignment paperwork must be signed and completed prior to the assignment commencing. Payment of any applicable overseas allowances will not be implemented until this is received by the International Assignments Team.

2 Immigration

It is imperative that all required/appropriate visas and work permits are obtained for both the assignee and all accompanying family members before they take up their assignment. The transfer date will be subject to the issuance of these documents.

The assignee should also ensure that each accompanying family member has a passport (including children) and that each passport has at least six months before expiry at the time of planned entry to the host country. The assignee will be responsible for the administration and cost of passport renewals during the assignment.

Immigration compliance must not be abused as host country authorities can remove broadcasting licences and fine or imprison employees who do not comply with all immigration/work permit requirements. Additionally, some countries may deport the assignee and forbid any subsequent return, thus prematurely ending the assignment. The assignee and the Line Manager therefore have a collective responsibility to ensure that they do not commence the assignment and/or work until all required permissions have been obtained. It is important to remember that immigration decisions are not within the control of the BBC and there may be times when immigration rules prevent an assignment or cause early termination of an assignment. The BBC will support all immigration applications to try and avoid such events but if it is not possible to obtain the necessary permissions the assignment cannot proceed.



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3 Pre assignment medical examination

It is always recommended that a medical examination is organised and undertaken at least one month ahead of the assignment. The purpose of the pre-assignment medical is to ensure that the assignee and any accompanying family members are fit to travel and work and to offer advice on local conditions in the host country. For some countries, the assignee and their family may require further medical examinations and the assignee must make sure that all vaccinations are fully up to date ahead of arrival in the host country. If it is not possible to have a face to face medical examination/consultation (for example where an assignment is to start at short notice or consecutive assignment), the assignee must have a telephone consultation with occupational health and any follow up should be completed overseas. . It is the collective responsibility of the assignee and the Line Manager to ensure that the medical examinations are undertaken and that the assignees are fit to travel and work in the host location.

4 Pre assignment consultation

The BBC considers the proper preparation of assignees to be critical to the success of the assignment. The purpose of the consultation is to answer any questions that the assignee may have regarding the assignment. Typical topics covered include:

An explanation of the policy and to clarify any points arising;

Remuneration and benefits associated with the assignment;

Tax compliance and general tax advice, including social security. In certain circumstances (e.g. assignees who need to find appropriate schooling for their accompanying children), the assignee and partner may be entitled to a reconnaissance visit to the host location. This must be approved prior to the visit taking place.

5 Transfer and relocation costs 5.1 Flights On acceptance of the terms and conditions of the assignment, the BBC will pay for economy flights for the assignee and his/her accompanying family to the host location. These flights should be booked through the normal BBC transport website. Similar provision will be provided at the end of the assignment to return the assignee to their home location. The BBC will not pay for flights for dependants who remain in the home location and do not accompany the assignee to the home location. Air passenger duties can be reclaimed.

5.2 Removal of personal effects This is designed to provide help in moving the family’s personal effects to the host country. The same limits set for shipping will apply to repatriation as well as expatriation.



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Sea/surface freight allowance limits The BBC policy is to use sea/surface freight for the movement of personal effects. Maximum freight allowances are determined according to the family size and the type of accommodation to which the assignee is moving as follows:

Single or accompanied by partner

Accompanied by family (partner and at least one child)

To furnished accommodation 20 foot container 20 foot container

To unfurnished accommodation 20 foot container 40 foot container

Assignees may opt for larger volumes at their own expense.

The BBC will pay for the following types of items as part of the shipment of personal effects:

Professional packing;

Normal haulage / shipping costs;

Crating;

Clearance charges;

Door to door transportation;

Short-term storage in the host location (only if required as a result of permanent accommodation not being secured before arrival of shipment);

Insurance coverage supplied as part of the agreement with the shipping company to cover goods in transit. This does not include additional insurance such as mould and mildew, pairs and sets or electrical and mechanical derangement protection.

The BBC will not pay for shipment, insurance, import duties, storage or crating costs of items such as (but not exclusively):

Motor vehicles of any sort (includes aircraft, cars, motor cycles, boats, jet skis and other watercraft, riding petrol mowers or similar garden or horticultural equipment);

Perishables;

Alcoholic beverages;

Bottled or canned goods or foods;

Pets or livestock, nor quarantine costs;

Items that are frequently subject to import controls (e.g. firearms, weapons);

Plants or garden statuary;

Hazardous materials such as paint, matches, solvents, aerosol cans, cleaning fluids, flammables or corrosives;

Items of particularly high value (£750+) that are excluded from the shippers’ standard insurance cover (e.g. art, antiques, jewellery, and individuals collections, e.g. paintings, sculptures, carpets, stamp collections);

Very large of heavy items of furniture (e.g. piano, grandfather clock, pool, snooker, or billiards tables);

Any other items which are prohibited by law or by normal carriers’ conditions of carriage in import/export or storage shipments.

Note: items such as pianos & grandfather clocks are specifically restricted from shipping to the host location because, from experience, it is known that they do not tolerate changes in



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temperature or climates very well (to hotter or colder, drier or more humid locations). In addition, such items are more susceptible to damage during shipping.

The assignee is responsible for providing all information to the shipping company to facilitate the passage of effects through customs.

In some countries import and customs duties on used goods have to be paid, these will be paid by the BBC. However, if an assignee should attempt to ship any restricted item and a delay is thereby incurred, any costs arising from that delay or otherwise will be for the account of the assignee and not the BBC.

5.3 Removal of personal effects - exceptional circumstances

If the assignee marries during the assignment (or other dependents join the assignee in the

host location), the BBC will cover the costs associated with the dependant’s travel to the host location but no additional removal costs.

If members of the assignees family repatriate during the assignment, the BBC will only cover the costs associated with the shipping of the goods once (i.e. at the time when the family repatriates or at the end of the assignment when the assignee returns).

If the assignee gets divorced during the assignment, the BBC will cover the cost of travel for the spouse and children to return to the home country but will not fund any removal costs.

Removal costs will only be funded by the BBC once to the host country and once on return.

5.4 Air freight & excess baggage The BBC will cover the cost of an extra 20kg of baggage per adult (aged 18 years or on date of travel) travelling to live in the host country. This is in addition to the normal airline baggage allowance.

In certain circumstances, where it would seriously inconvenience a family to wait for a surface shipment to arrive (for example, where baby or medical equipment is needed) the BBC will allow a small air freight shipment to the host country up to £1400. This must be pre-authorised and would normally only be available to assignees with babies/small children (less than 5 years old) or if medical requirements for any of the relocating family necessitate this. If the assignee and accompanying family are entitled to an air freight shipment they will not be granted the excess baggage allowance.

5.5 Insurance on goods in transit The BBC will meet the cost of insurance coverage supplied as part of the agreement with the shipping company to cover goods in transit.

The BBC will limit the insurance premium costs on shipped goods, to the premium applicable for goods up to the total value of:

£25,000 (or equivalent) for a 20 foot container

£50,000 (or equivalent) for a 40 foot container.



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5.6 Relocation Leave The BBC recognises the inconvenience of an international move and as such will provide up to 4 paid leave days (in addition to your annual leave entitlement) to enable the assignee to move (e.g. pack up in home country) and settling in time in the new location. On return to the home country the assignee will be entitled to a further 4 days leave to pack up and return to the home location.

6. Relocation allowance A lump sum payment is made to all assignees to cover incidental or out of pocket expenses that may arise in both the home and host countries, as a result of the international assignment. The amount payable (£1,000) is paid at the beginning and end of the assignment. The allowance is intended to cover, but not be limited to:

Personal contents insurance;

Arranging house lettings;

Professional house cleaning;

Carpet cleaning;

Valuations for antiques, jewellery and other valuables;

Clothing (e.g. new school uniforms);

Mail re-direction services;

Car selling expenses;

Car hire and transport expenses;

Pre-departure meals and food;

International drivers licence;

Costs associated with obtaining passports, visas or work permits (e.g. photographs, fees associated with obtaining copies of marriage certificates, education certificates etc;

Suitcases and baggage;

Storage or additional storage on top of the exceptional storage allowance available for consecutive assignments (see 6.1 below)

6.1 Consecutive assignments If an individual goes on a consecutive assignment the allowance is payable once for the transition between the two assignments. For example, an individual who is assigned from their home country to Belgium for two years and is then assigned directly from Belgium to the US for a further two year assignment who then repatriates to the home country will receive the following disturbance allowances:

one at the beginning of the Belgium assignment;

one allowance (and not two) for the move from Belgium to the US; and

one payment at the end of the US assignment when the assignee repatriates to the home country.

The BBC may, in exceptional circumstances (and with appropriate Line Manager consent) cover the cost of storage for a maximum of one month for assignees moving directly between consecutive assignments. This will only usually apply when work duties prevent the assignee from securing appropriate long term accommodation in the new host location.



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7 Temporary accommodation 7.1 Arrival in host location Temporary accommodation may be necessary on arrival in the host country until the assignee and accompanying family are able to secure long term accommodation. The BBC will typically fund this for a maximum period of four weeks. Pre-authorisation from the Line Manager should be obtained before temporary accommodation is sought or booked. The type of accommodation (e.g. hotel, serviced apartments) will reflect what is available locally and normally what is the least expensive option for the BBC.

7.2 At the end of the assignment Temporary accommodation will only be provided at the end of the assignment if the assignee is required to vacate rental accommodation (due to terms of the lease) prior to their departure date. If available/suitable, the assignee and accompanying family will be expected to stay in BBC leased/provided accommodation. If this is not available the next option, would be to source local accommodation, the type of which (e.g. hotel, serviced apartment) should be the least expensive option for the BBC.

8 Accommodation Contribution The BBC discourages the assignee from purchasing property in the host country as this may limit repatriation and future mobility. Where the assignee decides to purchase property in the host location, the BBC will not make a contribution towards any accommodation costs from that point onwards.

The main objective of the BBC policy is to provide a housing allowance set in accordance with known housing information/statistical data in the host location. This allowance will enable suitable accommodation to be rented that is safe, secure with reasonable infrastructure at a cost most advantageous to the BBC. Housing costs and conditions vary around the world and it is the BBC policy to provide the housing allowance according to the family size relocating to the host location that is within a reasonable distance to the assignee’s normal place of work. Should the assignee wish to rent accommodation in excess of the housing allowance, this excess will be for the assignee’s account (the BBC will usually collect this via payroll, with a fixed/agreed exchange rate being applied from the outset). If the assignee decides to take up accommodation that costs less than the housing allowance, the BBC will fund the actual cost. No cash allowance will be paid for the differential between the maximum allowance available and the actual cost.

This policy provides for the assignee to ship household belongings around the world, it therefore follows that in the majority of cases unfurnished accommodation would be most suitable (subject to local rental practices).

8.1 Furnished accommodation If furnished accommodation is provided, the accommodation should, where possible, include all hard furnishings such as; tables, seating, cupboards, beds, cooking appliances, appliances for necessary maintenance purposes (e.g. vacuum cleaners, lawnmower) and a television. Soft



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furnishings such as carpets and curtains and utensils for cooking and eating should also be included.

Where these items are not included, the assignee should in the first instance discuss with the bureau/office manager which items the BBC has available locally. If no furnishings are available (or only in part), the BBC will meet reasonable costs of purchase (Line Manager approval is required before any purchases are made). Upon completion of the assignment, it is expected that the assignee will leave the BBC funded furnishings. An inventory of such goods will be drawn up and agreed at the outset of the assignment and checked and returned to the BBC at the end of the assignment. Please refer to 8.4 regarding maintenance.

8.2 Legal relationship and insurance

The lease/rental agreement will be in the name of the BBC with the assignee being the named tenant unless local regulations stipulate that the lease should be in the name of the assignee. The lease/rental agreement should be checked by the Bureau Manager and relevant legal contact prior to acceptance. Building insurance should be provided for as part of the lease/rental agreement. If this is not the case, the assignee should discuss what provisions will need to be made with the Bureau Manager. It is the responsibility of the assignee to ensure that the building is appropriately insured. See point 6 regarding insurance for contents/personal effects,

8.3 Inventory and deposit The BBC will bear the cost of any required deposit against breakages. Assignees will be expected to check and sign an inventory if requested to do so, both at the start and end of the rental period. In addition, it is expected that the assignee should take photographs showing the general condition of the property at the outset of the lease – a copy should be provided to the bureau/office manager. The BBC will expect reimbursement from the assignee if any deduction is made against the deposit. In anticipation of any final liability associated with the property, the BBC may at its discretion withhold the final expense claim until the property has been assessed by the landlord and the deposit returned to the BBC.

8.4 Property maintenance Assignees are required to ensure that décor and fittings in the accommodation, as well as the surrounding grounds of the property, do not deteriorate over and above fair wear and tear and that standards remain high. The BBC will regard any damage caused through deliberate, avoidable or inappropriate behaviour by the assignee, member of the family or other guest present as a cost to be met by the assignee. The BBC will not cover any costs relating to the employment of servants, gardeners, cleaners or other domestic helpers. Neither will the BBC cover the costs of materials used in cleaning the house, for maintaining flowers, plants or trees etc.

8.5 Utilities The BBC will not contribute towards any utility costs such as electricity, gas, water, rates or any other incidental home costs such as cable TV and broadband. In certain host countries, where the individual is not working in a BBC office and requires broadband to be able to perform their work duties and the cost of broadband set-up is deemed to be exceptionally high – the BBC



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may make a contribution towards the cost of set-up. The BBC will not cover ongoing/usage costs. This should be discussed and authorised by the assignees Line Manager.

9 Education It is accepted that any international move could cause disruption to dependant children’s education and that minimising this is a high priority for parents. In considering whether to pay for education, the BBC uses a fixed formula to determine the contribution that will be made:

1) If local state education is comparable to the state education in the home country, no support will be provided. Clearance from the Line Manager or appropriate must be sought prior to moving to point 2 (see below).

2) If there is no adequate local state education available, the BBC will contribute towards

the school fees for private school. The level of contribution that the BBC will make towards education will be capped at the lower of fees payable for the local British, American or International schools. This does not prevent the assignee from selecting a different education establishment, rather sets the financial maximum that the BBC will contribute. If the school fees for the selected education establishment fall below the contribution cap, the BBC contribution will be capped at the lower fee.

Details of the contribution available will be provided in the assignment letter.

A contribution to education costs is only available for children who are between the commencement of school education (not pre-school ages, see below) and eighteen (or, if the child remains in full-time education beyond his/her 18th birthday, until the end of that academic year).

Where the BBC does pay towards the cost of education, it is intended as a contribution towards the cost of school fees, it does not necessarily cover the full cost of fees. The BBC will cover the appropriate one-off fees for example, school deposit/s at enrolment however, other educated related costs such as uniform/clothing, books and equipment, school meals, transport to and from school and extra-curricular activities like holiday camps or after school activities will not be met by the BBC.

10 Pre-school contribution The BBC will make a contribution of £1,150 per annum for pre-school education costs for 3 and 4 year old children residing in the host location. The money will be paid as a monthly allowance via payroll from the 3rd birthday until the commencement of full-time education.

11 Healthcare The BBC has set up an international medical insurance plan for all internationally mobile staff and accompanying family (for as long as they are in the host country with the assignee). Details of the plan, processes and contact details will be provided to the assignee prior to commencement of the assignment. The assignee is responsible for ensuring they read and understand the clauses within the insurance policy and follow the insurance company’s requirements.



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Pre-authorisation with the provider for medical assistance is always required.

12 Annual leave and public holidays For a full time, one year assignment, the assignee would usually be entitled to their home country annual leave entitlement plus the additional number of days to cover home country public holidays. Full details will be confirmed in the assignment letter. Agreement should be sought from the host country Line Manager as to when leave days can be taken. The assignment leave entitlement will be confirmed in the assignment letter.

All accrued leave must be taken prior to the assignment and during the assignment period.

Should the assignee terminate their employment with the BBC either during the assignment or during the holiday year in which the assignment ends, the entitlement specified above will be prorated to determine the actual entitlement up to the last day of employment with the BBC for that holiday year.

13 Home leave It is expected that the assignee and accompanying family will want to return to their home country during the assignment to visit friends and family and to maintain contact with home country colleagues. Assignees and accompanying family members will therefore be entitled to one economy trip home per year. Flights should be booked via the transport and travel system or local central booking system to get the best possible price. Flights will only be provided once the assignee has been working in the host location for at least 6 months. For assignees who are separated/divorced and where the dependant children have not accompanied them on assignment, the assignee will be entitled to one return flight per child per annum. This return flight can be used for the child to visit the assignee in the host location or for the assignee to visit the children. For example, an assignee in Washington has two children who live in the UK. The total return flights (UK to Washington or vice versa) allowable per annum would be 3, i.e. one home leave flight for the assignee plus two flights for children. This could be used in the following ways, one home leave trip and 1 visit each by the children to the host location or the assignee could make three trips home.

The BBC will not extend the home leave provision to wider family members who do not accompany the assignee to the host country, i.e. flights for family members to visit the assignee in the host location. The decision to go on an international assignment is a personal one and the family circumstances mean that the employee needs to be absolutely clear about the assignment before applying.

14 Rest and recuperation In certain host locations, assignees may be eligible for additional paid travel and time off to rest and recuperate. These provisions will be determined locally in response to onsite conditions. If applicable, details will be provided in the assignment letter.



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15 Car Cars are only provided for work purposes in locations where security needs dictate. This should be discussed with the Line Manager in advance of any commitment being made. If a car is provided, it is the assignees responsibility to make sure that they have the relevant driving licence and documentation legally required in the host country. Any uninsured damage to the vehicle will be the responsibility of the employee to meet. Mileage logs must be used to identify private use and failure to comply with this requirement by the end of the relevant tax year will result in the BBC not picking up the tax cost associated with the benefit provided.

The BBC will consider requests for an interest free loan (up to a maximum of GBP 15,000 or equivalent) as a contribution towards the costs of purchasing a car for personal use. The loan will be repayable equally over the lesser of the assignment duration or 36 months. These deductions will be collected via payroll. Receipts for proof of purchase will be required to support the loan release. Any outstanding loan must be repaid to the BBC within twelve months of return to the home country, or immediately in the event of cessation of the assignment and or employment. Any tax liability arising from the provision of the loan will be met by the BBC under the tax equalisation policy.

16 Language tuition A contribution towards language tuition is offered to help the assignee achieve the standard of language required in the host location. This should be discussed and pre-authorised with the Line Manager before booking.

17 Remuneration 17.1 Assignment salary The assignment salary is the remuneration to be paid during the assignment and is calculated by reference to the home substantive salary. Assignment salaries are calculated using a build-up approach, taking into account:

Home country hypothetical tax or actual tax (depending on home country withholding tax regulations);

Home country hypothetical or actual social security;

Acting pay if the assignment position is at a higher grade than the home position;

Cost of living allowance (COLA) if applicable;

Other applicable allowances.

Salary will continue to be paid via the home country payroll.

Since hypothetical/actual tax and social security will be withheld, a net assignment salary will be guaranteed until the next salary review or cost of living review.

The salary will be reviewed under the normal home country salary review process.



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17.2 Payment of salary – host country currency Wherever possible, the assignee can elect to have part/all of their salary paid in a host/third country currency. In order for this to apply, the assignee will need to specify the amount they wish to receive in host currency by reference to their home country salary. For example, an assignee whose home country is the UK has a monthly net pay of £1,850 – he/she could elect to have £1,500 converted and paid in the host currency. The balance would be paid in the home country. It is mandatory to have the appropriate bank account set up in the host country in order for this to apply. Should an assignee decide to receive all or part of their net salary payment in their host country currency, the individual would need to decide upon the exchange rate policy to be used in calculating the amount paid in host currency. There are two options available to the assignee both are outlined below. An assignee can only apply one of either the Variable Exchange Rate (VER) or the Guaranteed Exchange Rate (GER) to the entire amount elected to be paid in host currency during the cycle. There are two cycles per annum running 1 December through 31 May and 1 June through 30 November. It is recommended that the assignee considers and understands both options before deciding which to apply.

17.2.1 Variable Exchange Rate (VER): the standard BBC exchange rate for the

month will be used to determine the amount payable in the host country. This approach means that the individual’s host payment will vary depending on the prevailing BBC exchange rate. If the assignee would consider it preferable to limit their exposure to exchange rate movements (between the home and host country currencies) they may wish to elect for the Guaranteed Exchange Rate (GER) option outlined in 17.2.2.

17.2.2 Guaranteed Exchange Rate (GER): this election provides the assignee with

the opportunity to protect the amount received in the host currency for a six month cycle. It can only be made in respect of the full amount elected to be paid in the host country.

Making a GER election means that your host country salary will be determined using a fixed exchange rate and accordingly, changes in exchange rates will not impact on your host currency salary for the duration of the cycle.

The GER exchange rates available will be reviewed every June and December by reference to an average of the BBC’s monthly average rate over the prior five months. The new exchange rate will be communicated to assignees in time for an election decision to be made for the next cycle period.

A GER election, once made remains in place for the six month cycle (or if assignment starts part way through a cycle, until the end of the current cycle i.e. May or November). It is not possible to opt out of a GER election mid cycle or to vary the amount mid-cycle. Making a GER election involves accepting the



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given exchange rate and amount paid in local currency according to this rate for the cycle period. The GER election has to be made within two months of the start date of the assignment and a VER can apply for the first two months, but once elected into GER, this remains in force until the end of the current cycle.

Exchange rates do fluctuate (sometimes substantially) however the aim of the GER is to provide some protection in terms of the host country salary payment for the six month cycle period. It is not possible to remove a GER election mid-cycle due to favourable or unfavourable exchange rate changes. You can only elect into or out of GER at the June and December points.

17.3 Cost of Living Allowance (COLA) Where there is a difference in the cost of living between the home and host location, a cost of living allowance will be paid to protect the assignee’s daily purchasing power on items such as food, clothes, social activities etc. in the host country. It should however, be noted that the methodology cannot, and is not intended to, allow for individual spending patterns. The cost of living differentials are based on an international index which is calculated by an independent specialist data provider who is contracted by the BBC. A representative basket of goods is priced in each country and compared. The specialist third party provider then applies certain weights to the results, reflecting the significance of each item. The difference between the cost of the basket in the home and host countries is then reflected as an index. If the index is positive (i.e. reflecting the fact that the costs are higher in the host country) a COLA will be due to the assignee. Conversely, a negative index would indicate that the costs of living are lower in the host country. It is currently the BBC’s policy not to apply negative cost of living allowances.

The COLA allowances are reviewed every June and December and assignees will be notified if there is a change to the allowance. The BBC will bear the cost of any taxes and social security due on the COLA.

17.4 Child allowance Where the home country domestic legislation/state system allows for a payment to be made to the assignee for dependent children and this is no longer due as a result of the assignment the BBC will make a payment to recognise the loss of this benefit but only for children resident with the assignee in the host location during the assignment period.

17.5 Tax policy on Assignment The tax policy aims to eliminate the impact on net employment income of variations between tax and social security systems in different countries. Assignees will be held to the levels of tax and social security that they would have paid, had they remained in the home location – the net pay guarantee. This policy is intended to ensure that employees on assignment are broadly, neither “better off” nor “worse off” on stay at home remuneration as a result of the assignment.

A deduction is made to the salary which represents the tax that the assignee would normally have paid, had they remained in their home country. The hypothetical calculation will not be



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individually personalised but a generic model used, which reflects as closely as possible typical home country circumstances will be used taking into consideration:

Standard tax allowances and deductions;

Tax relief available for compulsory contributions to home pension plans.

In exchange, the BBC will pay the actual taxes and social costs due in the host location on employment income; salary, bonus, and on any assignment related benefits that may be provided such as relocation allowances, cost of living allowances, international medical, accommodation, schooling, return flights to the home location, tax return preparation etc. The Tax Equalisation policy only applies to assignment related employment income and does not cover other employment income which relates to the assignees’ employment with the BBC such as redundancy payment. The assignment policy assumes the assignee will repatriate to the home country at the end of the assignment. In the event that an assignee’s employment with BBC is terminated whilst on assignment, the assignee will be fully liable to tax and social security due in any country on any income received in connection with the termination (such as redundancy payment).

The assignee will remain fully liable for any host or home country taxes due on personal income/spousal income (see 17.6 below for details of how taxed).

The BBC will provide the services of a reputable accountancy practice to prepare tax returns in the host country and only returns prepared by the BBC’s selected provider will meet the terms of this policy.

It remains the responsibility of the assignee to ensure that the information shown on the tax return is both complete and accurate and to ensure that the returns are filed promptly with the tax authorities concerned. Wilful failure to comply with tax filing or the late submission of required information to the tax return provider will result in the assignee being liable for any late filing penalty and interest charges.

17.6 Tax position adopted Income tax allowances and any tax relief arising from the assignment shall belong to the BBC, including personal allowances. This means that in calculating the BBC’s share of the assignee’s tax liabilities, personal income (and spousal remuneration) shall be treated as the top portion of the assignee’s income when considering the tax rates to be applied (i.e. the highest rates of tax applicable in the individual’s circumstances are applied to personal/spousal income, not BBC income).

The assignee is responsible within the year end timetable to:

Provide the tax service provider with complete information to enable the completion of the tax return. This will change by location but typically covers details of all personal or spousal income, travel calendars where required;

Check the tax returns carefully to ensure that they are complete and accurate before signing and filing on a timely basis;

Repay all tax refunds received from the tax authorities in the home or host location, which relate to BBC source income;

Open a bank account in the host country to enable any tax payments to be made if necessary.



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17.7 Tax audits The assignee must forward all tax notices or statements received from the host tax authority to the tax service provider and co-operate fully with the service provider throughout any dealings with the relevant tax authority.

17.8 Tax services provided The services to be provided to the assignee are as follows:

Submission of departure documentation and obtaining non-residence status if available;

Host country arrival tax briefing;

Submission of arrival documentation, including social security clearance and registration;

Liaison with tax authorities to obtain expatriate status;

Filing of host country tax returns. The service will also include the preparation of any request for extensions to file the tax return;

Review of tax authority statements and necessary appeals if required;

Submission of departure tax return if required;

Liaison with tax authority to confirm cessation of tax residence.

17.9 Tax services not provided The preparation of tax returns other than for the BBC employee (unless joint returns are

required by the tax authority);

The preparation of any dependant children’s tax returns;

Financial or personal tax planning services.

Where such services are undertaken they are subject to a separate engagement with the assignee and payment of fees for such services is the sole responsibility of the assignee.

17.10 Work duties outside of host country, including work in the home country during assignment All assignees are expected to maintain a record of their international travel and work duties wherever performed to facilitate analysis by the BBC/BBC’s nominated tax advisor of exposure to income tax in the home, host and additional countries where domestic rules may determine an exposure to tax. The BBC’s tax advisor will provide a travel tracker facility to enable this to be recorded electronically using a secure site. UK home country employees must pre-authorise any UK work days as the UK authorities have tightened up on the impact of UK work days on an individual’s tax residence basis.

18 Costs not covered by the BBC International Assignment Policy The BBC will not cover the following assignment related expenses:

Mail redirection costs;

Car selling services;

Car for private use;

Home to work travel (e.g. taxi to and from the office);



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Private phone calls;

Food or other personal living costs such as laundry, gym memberships etc.;

Home/host country personal expenditure

Please note that this list is not exhaustive. If you have any queries, you should contact the International Assignments Team.

19 Maternity and paternity during international assignment The home country policy will apply wherever possible.

20 Compassionate leave The majority of personal circumstances which necessitate time off work should be accommodated within the normal annual leave allocation. However, in exceptional circumstances (such as family bereavement) Line Managers may at their discretion grant additional leave.

21 Termination of an international assignment This section outlines the procedures that the BBC has put in place to cover arrangements in the event of:

An assignment ending prematurely; or

An assignee’s employment (with home country employer) ending whilst on assignment. The BBC’s policy in this area is determined by whoever instigated the ending of the assignment or employment, the reason, together with the facts and circumstances of the case.

22 Repatriation Planning Assignees are expected to actively plan and pursue opportunities following their assignment.

Assignments to a foreign bureau, on attachment to World Newsgathering, are for one

assignment only after which assignees are expected to return to their parent department. If the

assignee’s parent department is not Newsgathering, further applications for overseas

assignments will only be authorised by the parent department and accepted by Newsgathering

if there has been at least 12 months between the end of the last overseas assignment and the

start date of any subsequent overseas assignment.

Vacancies in the bureaus are normally advertised. However in some circumstances, the BBC

may appoint an employee without competition. Otherwise, employees seeking a consecutive

assignment are expected to compete for any vacancies which arise.



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When a transfer occurs it is regarded as a new assignment subject to the policy applicable at that time. When notice of the end of assignment is given, the BBC will make every effort to assist the resettlement of the employee on their eventual return to the UK.

Employees are expected actively to pursue resettlement opportunities themselves. The BBC

will fully support and facilitate this activity and, where appropriate, upon application will bear the

reasonable costs of return travel between a foreign location and the UK to enable the

employee to attend appointments to secure resettlement.

If employees are eventually resettled in a lower-graded post within the BBC then they retain

their substantive grade and salary.

Documents

INTERNATIONAL ASSIGNMENT POLICY