According to an Ernst & Young news release, accidental expats are employees who travel cross border without formally notifying HR or other managers in charge of global mobility programs.
The survey found:
- 65% of responding organizations have not communicated to their short-term business travelers what it means to be an accidental expat.
- 55% of responding organizations have not developed a system to track short-term business travelers.
- 54% of respondents do not have a policy addressing accidental expats or short-term business travelers in their organization
In a time of budget cuts the risks associated with accidental expatriates can increase due to regulatory changes and increased audits by tax and immigration authorities.
Ernst & Young said these risks can include:
- permanent establishment risk,
- regulatory compliance,
- business reputation risk,
- employment law risk,
- budgetary risk,
- risk of prosecution, and
- an unhappy employee population.