European Union: Efforts to Standardize Rules for Intra-Corporate Transfers

In a July 2010 proposal, the European Commission proposed a directive that would create a uniform standard for all 27 member states concerning international intra-corporate transfers (ICTs) of highly skilled employees. The proposal permits managers and specialists to remain in a member state for up to three years (trainees for up to one year), and to bring their family along. Many businesses, currently confronted with different applicable standards among member states, support the proposal, which many believe would increase competitiveness by allowing companies to bring their best and brightest overseas—albeit temporarily—to develop, strengthen and expand EU operations. Moreover, because ICT costs, including relocation, transportation and insurance, can be burdensome, uniform rules permitting longer stays would potentially offset front-end expenditures.

Support, however, is lacking among union representatives, according to EurActiv.com. One trade union official expressed concern that ICTs will permit companies to “flood labor markets with cheap labor that undermine local conditions.”

European Parliament and member states are expected to discuss the proposed ICT directive during the first half of 2011.

State Department Issues Final Rule on Exchange Visitor Program Trainees and Interns

U.S. Department of State SealTwo years after introducing an interim final rule concerning trainees and interns in Exchange Visitor Programs (EVPs), the U.S. State Department published a final rule in the Federal Register. The final rule essentially confirms its interim predecessor which, among other things:

  • eliminated the distinction between “non-specialty occupations” and “specialty occupations;”
  • established a new internship program; and
  • modified the selection criteria for participation in a training program.

However, the final rule, which becomes effective September 10, 2010, makes the following changes:

  • permits telephone interviews to screen potential participants’ eligibility;
  • removes the requirement that sponsors secure a Dun & Bradstreet report profiling companies with whom a participant will be placed; 
  • provides clarification regarding the verification of workers’ compensation coverage for participants and use of an Employer Identification Number to ascertain that a third-party host organization providing training is a viable entity; and
  • clarifies that trainees and interns may repeat training and internship programs under certain conditions.

EVPs allow foreign nationals with significant experience in certain occupational fields to receive further training in the United States. They are designed to enhance academic and occupational skills and expertise by having participants engage in structured work-based training and internship programs, and to improve participants’ knowledge of American techniques, methodologies, and technology. EVPs also are intended to expose visitors to U.S. culture and society, and Americans to foreign cultures and skills.