CapRelo Insider July 2024
Changes in Work Permit Applications for Foreign Nationals: New Policies at U.S.- Canada Border
Starting immediately, foreign nationals are no longer permitted to apply for work permits directly at the U.S.-Canada border, following a declaration by Immigration Minister, Marc Miller. This policy shift is aimed at curbing the practice of “flagpoling,” where temporary residents of Canada avoid standard application wait times by briefly exiting the country and promptly re-entering to expedite immigration services on the same day.
Miller emphasized the necessity of this measure, highlighting that the considerable time and effort involved in processing flagpoling applications diverts border officers from crucial duties safeguarding the security and economic well-being of both Canadians and Americans.
In response to the increasing strain on resources posed by flagpoling, Immigration, Refugees and Citizenship Canada (IRCC) recently reduced flagpoling hours at 12 ports of entry across Canada. This adjustment aims to optimize border officer efficiency during peak travel periods and refocus efforts on managing high-risk travelers and facilitating international trade.
IRCC also outlined measures to encourage temporary residents to apply for work permits within Canada instead of resorting to flagpoling. These efforts include expediting processing times for in-Canada work permit applications, simplifying online forms and procedures, and granting authorization for workers to start new jobs immediately upon application submission, rather than waiting for full permit approval.
The Impact: Previously, some relocating employees may have used the flagpoling method to expedite their work permit applications by briefly leaving and re-entering Canada. With this option no longer available, employees will need to use the official channels for applying for work permits within Canada.
While the policy change aims to streamline immigration processes and enhance security measures, it may require adjustment and careful planning from both employers and relocating employees to ensure compliance and smooth transitions for work assignments in Canada.
Strengthening Duty of Care in Corporate Relocation
Pervasive media coverage and constant news updates have heightened global perceptions of insecurity. Many employees, influenced by these factors, feel uncertain about safety, impacting their well-being and willingness to relocate. This is particularly significant in the context of corporate relocation.
Studies reveal a widespread belief that the world has become more dangerous, fueled by economic turmoil, international conflicts, and environmental challenges. For businesses managing global operations and corporate relocations, addressing these perceptions is crucial. Companies must enhance their duty of care—ensuring not only physical safety but also mental well-being through advanced technology, trusted partnerships, and robust support systems.
Technology plays a pivotal role in modern duty of care strategies, providing real-time risk assessments and local safety ratings that empower employees with accurate information. This proactive approach not only mitigates risks but also fosters trust and resilience among employees facing corporate relocation uncertainties.
The Impact: As global dynamics evolve, companies must remain adaptable, staying informed about emerging risks and adjusting strategies to maintain employee security and confidence. By prioritizing comprehensive duty of care, organizations can create a supportive environment where employees feel safe and valued, despite the challenges of our unpredictable world. A reliable mobility management partner can help businesses develop and maintain high duty of care standards.
CapRelo knows that moving to a foreign country can be a stressful experience. Duty of care is therefore an essential part of our approach to mobility. Contact CapRelo to learn more about our how we approach duty of care and our recommendations for your mobility program to ensure the wellbeing of relocating employees and their families.
MLS PIN Settles Lawsuit Over Buyer Broker Commissions
After years of legal battles, New England’s largest multiple listing service (MLS) recently agreed to a settlement worth $3 million. This agreement requires the MLS to make policy changes and assist in litigation against other real estate franchisors involved in the lawsuit.
The lawsuit, known as Nosalek, was initiated in December 2020. It claims that MLS Property Information Network (MLS PIN), owned by brokers, adopted rules like those of the National Association of Realtors without direct obligation. These rules mandated that listing brokers must offer compensation to buyer brokers to list properties on MLS PIN.
As part of the settlement, MLS PIN will pay $3 million, with portions allocated for legal fees, expenses, and notification of affected parties. Despite denying wrongdoing, MLS PIN chose to settle to avoid prolonged legal costs and distraction.
The settlement also requires MLS PIN to modify its policies regarding buyer broker compensation. Pending court approval, these changes aim to clarify how compensation is handled between brokers and sellers.
The Impact: This development is part of broader litigation concerning buyer broker compensation policies, though it does not involve the National Association of Realtors directly. The outcome of this settlement could impact similar cases and practices within the real estate industry.
Implications for relocating employees requiring real estate services primarily revolve around potential changes in how buyer broker commissions are managed. Changes in buyer broker compensation policies could influence the overall cost structure of real estate transactions. If policies become stricter or if there are changes in who pays buyer brokers’ commissions, it could affect the final costs incurred by relocating employees. Additionally, the settlement may change market dynamics, affecting property availability and visibility on MLS platforms, which could impact employees’ real estate options.
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Global Mobility Radar
CapRelo’s Mobility Radar provides valuable insights into trends worth monitoring. This month, we have detected important global mobility updates in Portugal, Mexico and India.
- Portugal intends to reintroduce tax breaks for foreign residents to attract skilled workers, focusing on professional income while excluding pensions and other gains. Originally launched in 2009 and discontinued in 2023, the scheme aims to bolster economic competitiveness by attracting strategic talent.
- Following the presidential election on June 2, the Mexican Peso (MXN), has continued to decline in value. Citi economists have predicted that economic growth is expected to slow to 1.8% in 2024 and inflation is also projected to rise slightly. The peso is expected to become weaker in the months ahead.
- Monthly rent in major cities across India continues to rise as the economy explodes. Low availability of high-quality properties is causing a supply and demand imbalance as local tenant incomes grow sharply.