advice online - Living and Working Overseas

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Advice Online > Remuneration: Living and Working Overseas

Living and Working Overseas

Should I consider working overseas?
What employment conditions should be set out in an overseas employment contract?
How do I negotiate a reasonable salary?
APESMA membership while overseas
I'm an APESMA member and would like to directly access detailed advice on taking up an international assignment

Should I consider working overseas?

Everyone has their own reason for taking up an overseas posting. For the professional, key considerations might be the purchasing power of the remuneration package, whether or not the posting will contribute to long-term wealth creation, how it will contribute to broadening career path opportunities, whether or not employment opportunities will be available for a spouse or partner, and how an overseas posting will impact on your personal life.

Preparation and realistic pre-departure expectations are essential to a successful placement overseas. Certain personal skills such as political, economic and geographic knowledge about the world and the country in which you will be working, knowledge of the international aspects of your field of work, personal coping and adapting skills, and international and intercultural awareness, also significantly increase the likelihood that your international assignment will be successful.

While multinational companies with well established overseas operations are likely to be aware of many of the employment-related relocation issues and pitfalls canvassed here, small to medium-sized employers, for whom sending staff overseas is not a regular event, may have good intentions but be less familiar with the issues they need to consider.

The need for a clear and agreed set of terms governing the conditions of your employment is paramount when you consider an international assignment. It is essential that you receive specialised advice on your contract before committing yourself to an overseas posting, and you should contact APESMA for expert assistance with your contract.

What employment conditions should be set out in an overseas employment contract?

The following areas should be included in any contract which will govern your conditions of employment while engaged on an international posting.

Employment conditions to be covered in an employment contract for an international assignment:

Life assurance
Exit and entry requirements
Duty statement
Benefits to spouse and dependants
Hours of work
Overtime
Public holidays
Long service leave
How contract can be terminated
Immigration requirements
Health and medical
Annual leave
Sick leave
Compassionate leave
Higher duties allowance
Disruption allowance (where you are required to travel on a regular basis, you should negotiate an allowance for disruption and inconvenience)

Fares and travel
Pre-departure expenses
Transport of personal effects and excess baggage
Costs for return to Australia
Accommodation/housing
Natural disasters
Transportation
Education of children
Office accommodation and equipment
Language training
Payment of accounts
Arrangements in the event of death
Dispute settling procedure
Extension of contract
Variation of the agreement

Each of these areas is covered in detail, and a draft clause is included in the Working and Living Overseas Guide in the Members Only section section of the APESMA website.

How do I negotiate a reasonable salary?

Generally speaking, your salary when on international assignment, should comprise the following:

Base salary

An amount equivalent to that which would be paid in Australia for the same work is appropriate. You should refer to the APESMA Market Rates for guidance and advice on appropriate remuneration levels.

Overseas loading

Monetary compensation in the form of individual allowances or a salary loading can be calculated by adding around 30-40 per cent on top of the remuneration which would be received for similar work being undertaken in Australia. Refer to information set out in the Members Only section of the website for information on what this loading compensates the individual for, and other salary considerations such as an additional payment of a lump sum on completion of the assignment, stock options and compensation for currency devaluation.

APESMA membership while overseas

A special membership rate is available to APESMA members working overseas. By maintaining your Association membership in this way, you will continue to be entitled to all APESMA member services during your overseas posting. We are contacted regularly by members working overseas with queries about their employment contracts, the premature termination of contracts and remuneration trends in Australia. In addition, many members working overseas are enrolled in our MBA program.

If you do decide to accept an overseas job offer, do not forget to let us know your new address so that we can maintain contact with you through our bi-monthly publication Professional Update.

I'm an APESMA member and would like to directly access detailed advice on taking up an international assignment

Visit the Members' Only section of the website to read the Working and Living Overseas Guide, and the Guidelines for an International Assignments. advice online will provide you with specialised personal advice which is particular to your circumstances, contact adviceonline@apesma.asn.au.