In a previous post, we discussed best practices in managing Global Mobility exceptions.
Now let’s review some of the most common exception requests and why they may not be part of your standard policy.
Top 3 Global Mobility Exceptions
1) Temporary Accommodation
Extension
An exception request to extend temporary accommodation, for more than the set amount of time stated in the policy or contract, is probably the most common exception request received in Global Mobility.
If the Global Mobility policy was well-designed to accommodate for transferees’ needs, an exception to extend temporary accommodation tends to be rejected if it’s asked purely for personal reasons.
You are expected to make it a priority to find a place to stay (long term rental) before the end of your company-paid temporary hotel accommodation.
However, the exception may be considered for approval if there are genuine reasons for extending that are beyond your control.
For example, if at the onset, you planned to find and move into an unfurnished accommodation and packed your shipment accordingly. If you are then in a situation where you have found and signed a lease agreement for an unfurnished apartment, but your sea shipment has not arrived due to circumstances out of your control (delay due to customs, sea shipment global supply chain issues, etc); your mobility case manager may put forward the exception request and find for solutions.
Preference
Another practical exception request related to Temporary Accommodation is related to the preference of the transferee.
One might prefer an accommodation that is closer to an office, a bigger room, a more family-friendly hotel, or a higher cost outside of policy standard.
Some companies allow for an employee to pay the cost difference, while others don’t.
Airbnb
The rise of Airbnb as an alternative choice of accommodation is undeniable.
If this is not among the preferred list of accommodations you could choose from, that may be due to corporate security concerns.
It is still worth asking your Global Mobility or Corporate Travel contact to understand if you could opt to stay at an Airbnb if possible.
2) Housing Allowance
Amount Increase
While Global Mobility Data Services providers like AIRINC provide quality expat market housing data, Global Mobility teams need to understand the principles behind internal policy and data benchmarks.
Does the policy intend to provide Host County Housing as a whole? Is it meant to be a contribution to offset assignee’s expenses? Is your benchmark on local or expat market, at what range?
Being informed with these information allows for a more holistic assessment of an exception request, and better communication.
It is also good practice to review the Housing Allowance amount on a regular basis, as markets change.
Delivery Methodology
What is the default arrangement for providing Host Country Housing?
Is it on a personal or corporate lease? Is it paid directly to landlord, via vendor, via payroll?
If delivered as cash, is the amount net or gross of taxes?
Could the assignee be given the housing allowance in cash, ahead of monthly rental deadlines; ie, so that the assignee does not have to pay upfront?
3) Home Leave Flight
Utilization
In general, reverse home leave flights are allowed when there are eligible dependents remaining in the home country.
However, other exception requests related to a preference in flight class, stop-over destination, and change in host location destination.
Such requests are usually reviewed from a cost perspective.
Carry-over
Since Home Leave flights are expected to be utilized in a given amount of time, there are times when it would be requested if this benefit entitlement could be carried over to the following year.
For instance, there were many flight restrictions during Covid-19 pandemic; which necessitated a review of this policy.
There are other circumstances that may lead to this exception, and it is important to understand the essence of your company’s Home Leave Benefit.
Additional Flights
Exception request for additional Home Leave Flights tend to have low chance of approval, unless perhaps in extreme situations.
It is still reviewed on a case-to-case basis; and from a holistic standpoint looking at the individual’s assignment remuneration and benefits, and Global Mobility policy.
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