What is an Expat

What and who is an expat?

Anyone living in a foreign country is an expat

But putting the definition within the context of multi-national companies:
expats are distinguished based on the nature of employment contract.

Individuals regularly employed in a company have a local employment contract. Most of us are familiar with this.

Local contract generally outlines the employment start date, terms and conditions, compensation & benefits, and location where the work is to be performed.

Assignment contract outlines a secondary work location where an expat is temporarily assigned to, assignment compensation and benefits, start date and expected end date of the temporary assignment.

In this business & employment context, expats are individuals on temporary assignment, working in a country different from their primary employment home location.

Typically, expats are on long term assignment, for a duration between 1 – 5 years.

During this period, their salary may either continue to be delivered in their primary payroll home country, or through their host country.

When the long term assignment ends, the expat is re-classified as a non-expat or a general employee.

The end of a temporary assignment could mean that the expat repatriates to the home country, or localizes in the assignment location.