Although we are all aware that the family is very important, especially in the context of assignments, it is often forgotten. The still very high number of aborted assignments due to family issues should not be ignored.

When planning a foreign assignment, the focus is placed on the employee, as there are already several discussion points and legal clarifications that need to be made. Only after the remuneration package including all allowances has been put together, the assignment contract signed, and the work permit obtained can the actual foreign assignment begin.

Example

Drinks AG, based in Zurich, would like to send its employee Reto Meier to the USA for two years. His wife and two children as well as his mother-in-law are to accompany him.

HR has already prepared everything for Mr. Meier but has completely overlooked the fact that his wife and children will also be accompanying him.

What needs to be done for the family so that they can accompany Mr. Meier to the USA?

Solution

The first step would be to apply for a residence permit for the wife and the two children within the framework of family reunification in the USA. In addition, it should be clarified to what extent the mother-in-law can also obtain a residence permit for the USA for two years. If this is not the case, alternatives should be examined. The costs of the residence permit for the family are usually paid by the employer. Depending on the definition of family, this includes the costs for the mother-in-law's residence permit.

If the two children are of school age, the second step should be to look for a school that meets their needs. An international or German school may be a good option, with the understanding that both children will return to Switzerland after two years and continue their school career here. The school costs incurred are often covered by the employer during the assignment abroad.

In a third step, the wife's situation should be examined more closely. If the wife wishes to work in the USA during the assignment abroad and the corresponding diplomas are required, it should be checked whether the existing Swiss diplomas are recognized in the USA.

Often the spouses are gainfully employed in their home country before the assignment abroad and have to give up their jobs. In some cases, the employee also requests that the loss of the spouse's income should be compensated by the employer. We recommend paying a lump sum (spousal support), which the spouse can then use to attend further training courses in the country of assignment, for example. This also promotes the spouse's integration into the country of assignment.

The fourth step, and one of the most important, is about family insurance coverage.

As part of the international health insurance taken out for the employee, the accompanying family, including the mother-in-law, can usually be included without further ado.

Depending on the social security agreement, it must be checked whether the accompanying family is also insured under the AHV/IV during the assignment abroad. By the provisions of the social security agreement between the USA and Switzerland, co-insurance of the non-working family is included. The employer should take care of the necessary formalities and clarifications so that the insurance coverage can be clearly defined during the assignment abroad.

However, this does not include the mother-in-law. This means that she would have to be considered separately and, depending on her situation and age, apply for continued insurance voluntarily.

If the wife takes up gainful employment in the USA, co-insurance is not possible. Here, too, there is the possibility of reviewing continued insurance voluntarily.

Finally, the accompanying family should also be granted one flight home per year so that the connection to the home country is maintained.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.