Employment Outside the United States

Administration, General Administration   |   Approved March 18, 2025

Purpose

The purpose of this procedure is to guide UMB Schools and Administrative Units seeking to hire employees to live and work for UMB outside the United States. This Procedure summarizes UMB’s institutional position on the hiring of personnel outside the U.S., describes the options available to manage legal and compliance risks, and presents the steps and documentation required to employ personnel through UMB’s business affiliate, the Maryland Global Initiatives Corporation (MGIC).

Applicability

Any new or existing employee who is proposed to reside and work in a foreign location for longer than 120 consecutive days.

This form should not be used for:

1. Employees residing in the U.S. who travel outside the U.S. for occasional, approved UMB business. Approval of international travel should follow UMB’s Business Travel and Expense Policy and the guidance from the UMB Global Hub. 
2. Employees who request a short-term teleworking arrangement outside the U.S., with no impact on job duties/performance, residency status, terms of employment or UMB liabilities. Approval of such requests should follow UMB’s Telecommuting Policy and UMB’s Out of State Work Policy.
3. New Hires working in a foreign location on a temporary, transitional basis prior to relocating to the U.S. If as part of recruitment package or tied to securing U.S. work authorization, a selected candidate requests to work out of the United States on a temporary, transitional basis of no more than 120 consecutive days before they fully relocate to Maryland, then the request should be directed to the selected candidate’s Dean or VP. The approved timeline for relocation to Maryland must be stated as a condition of employment in the employee’s offer letter. Template language will be provided by Human Resources, and Requesting Units should work with the Center for Global Engagement for US immigration and work visa sponsorship.

UMB Position on International Employment 

As stated in its Policy on Out of State Work, the University of Maryland, Baltimore does not directly hire employees to be based outside the United States.

This position applies equally to U.S. Expatriates, Third Country Nationals, and Nationals of the country in which work is being performed. The reasons for this include:

1. UMB is not registered to do business in foreign countries and therefore may not be able to comply with employment laws and corporate obligations. Violation may carry criminal and/or financial penalties for both the employee and the Employer.
2. UMB cannot withhold payroll taxes and remit them to local revenue authorities. Tax residency classifications vary by country, but typical employee obligations include income tax as well as statutory contributions to nationalized benefits plans when mandated by law for work performed in the country, regardless of the location of pay. These host country levies are additional to U.S. federal and state income tax withholdings required of employees on State of Maryland payroll. Employees usually may not remit their own taxes on behalf of an employer that is not legally registered in the country.
3. UMB cannot pay mandatory Employer-side contributions to National Social Security Funds, National Pension Schemes and other social costs in foreign countries. Employer-side costs cannot be paid directly by employees on behalf of an Employer that is not registered in the country.
4. UMB cannot sponsor work authorizations, residency permits, or clinical and other professional licenses that may be required for legal presence and legal employment in a foreign country.
5. UMB cannot provide in-country workers compensation insurance as required for employees earning income in certain countries. UMB does not have international employment practices liability insurance to protect it against claims by workers that their rights have been violated outside of the United States.
6. UMB’s International Travel Accident and Illness insurance does not cover persons in the United States, their Home Country, or their Country of Permanent Assignment. “Home Country” means a country from which the Covered Person holds a passport. “Country of Permanent Assignment” means a country, other than a Covered Person’s Home Country, in which the Policyholder assigns the employee to work for a period of time that exceeds 365 continuous days.

Only in the rarest of cases will UMB consider direct, full-time employment outside the U.S. For a policy exception to be granted for international employment, a committee of the SVP/CBFO, Chief Legal Counsel, and Provost will consider whether:  the benefits to the University outweigh the risks and costs; the administrative and operational requirements can be managed by Central Administration and the Requesting Unit; and the full costs of legal compliance will be borne by the Requesting Unit. The committee will make its recommendation to the UMB President who has decision-making authority on whether or not to approve the exception.

Alternative Options for engaging personnel outside the United States

Three alternative solutions may be possible, depending on the funding source of the employee’s compensation, the requirements of the job, the budget availability of the Requesting Unit, and the analysis of risk versus benefit of the individual candidate and the proposed international assignment. These options are:

1. A US-based position employed directly by UMB, with extensive business travel to international locations following UMB’s travel policy and any funding source budget requirements. The definition of “extensive” must be determined in each case so as not to trigger residency, work authorization, or corporate Permanent Establishment requirements in the foreign country.
2. Split employment, with a part-time position at UMB performed fully within Maryland and subject to UMB’s HR and Payroll policies, and a separate employment arrangement directly with another institution that is not doing business with the State of Maryland, for any level of effort performed outside the U.S. Note: MGIC may not be used as the secondary employer if the individual is also employed in any capacity by UMB, per State of Maryland Ethics Commission rules.
3. A position outside the U.S. hired directly by the Maryland Global Initiatives Corporation (MGIC) or an MGIC Employer of Record (EOR) contracted firm, to manage payroll, tax, insurance, and applicable legal authorizations. This option will mean a loss of some privileges afforded to direct employees of UMB (See Section II). Additionally, it should be noted that the approval of required permits and licenses is not guaranteed by foreign governments, and MGIC may not be able to hire certain individuals or fill certain positions for that reason. Consequently, this option must be carefully researched and assessed in partnership with UMB’s International Operations division in each case, and may require additional consultation with UMB’s Legal Counsel and Human Resources division to ensure a full understanding of costs, risks, and benefits to the University.

Because each case is unique and complex, Requesting Units are strongly encouraged to contact the International Operations (IO) division (globalhub@umaryland.edu) as early in the exploratory phase as possible. The IO division has staff who specialize in international Human Resource management, foreign legal compliance, international travel, and risk management, and who can assist with research and analysis of the above options. The IO division also administers the MGIC mechanism and manages the EOR firms contracted through MGIC, and IO will determine whether MGIC can be used in each case.  Please refer to Section IV below for more detailed procedure guidance.

Additional MGIC Considerations

The third option above – international employment by MGIC or its EOR on behalf of UMB – carries additional considerations that Requesting Units should know before they engage with the IO division about their particular case:

A. What MGIC can offer:

• Legal employment outside the U.S.
• Secondment of employees to a specific UMB department, Center, or other Requesting Unit for direct supervision, workload management and team involvement
• In-country payroll, local benefits, and remittance of tax and other statutory payroll withholdings to local authorities
• Access to local medical and other available insurance (costs charged to Requesting Unit)
• Current and comprehensive knowledge of and compliance with applicable corporate requirements of employers in country
• Access to UMB international travel/accident insurance and emergency assistance coverage for employee and eligible dependents
• Direct payment of authorized business expenses (e.g. travel reimbursements, approved expatriate allowances) through MGIC USA or EOR

B. What MGIC cannot offer:

• Tenure or tenure track appointments
• Faculty appointment other than the “Voluntary Faculty” designation of USM/UMB
• “At-Will Employment” arrangement. Unlike in the U.S., many foreign countries have strict penalties for terminating employment contracts prior to the stated end-date (usually a one-year term), including severance payments and potential legal claims
• Retirement plan (other than local national pension scheme, if available)
• Medical/dental/prescription plans for routine health coverage outside the country of employment. Note, non-UMB employees are not eligible for enrollment in UMB plans.
• UMB’s Tuition remission benefit for the employee’s dependents
• Guaranteed approval of work and residency permits and/or professional licenses bestowed by the foreign government
• Supervision or performance management of employee (this remains the UMB School’s responsibility)
• Release of UMB liability for criminal acts or professional malpractice or negligence by employee. Professional malpractice insurance must be separately procured at additional cost

C. Additional implications of international employment:

1. 1. Labor Laws: MGIC, an EOR, or a locally registered institution that might enable the split-employment option noted above, are all required to follow employment laws of the country where the employee’s work is authorized or required to be performed. These requirements change frequently and with little advance notice, and may include mandated paid leave that exceeds UMB’s personnel policies, public holidays that differ from UMB’s, payroll benefits (such as annual bonuses) that may exceed UMB’s approved compensation ranges or annual increases, and occupational health and safety standards that may differ from the U.S.
   2. MGIC policies: MGIC maintains policies and procedures for Human Resources, Travel, Time and Effort Reporting, Finance, Ethics and Conduct, and other relevant areas. Employees hired by MGIC or an MGIC EOR are required to comply with applicable MGIC policies and procedures. IO provides guidance to MGIC employees and UMB supervisors to help navigate between MGIC and UMB policies when needed.
   3. Personnel maintenance: Discretionary allowances -- such as annual home leaves, housing, hardship allowance, dependent education, and financial offsets for income tax and legal expenses, among others -- may be necessary to offer a competitive package to employees considering international assignments. Each case is unique and dependent on a variety of factors including security conditions in the foreign country, accommodation options in the local housing market, and the allowability of such allowances from the source of funds for the position. In many cases, sponsored awards require the proposed allowances to be included in the funding application and the budget to be considered allowable; however, these allowances must also be approved by UMB Central HR in advance. Careful planning in adherence to this procedure, and careful communication with proposed employees, are required to avoid binding UMB or MGIC to a compensation package prematurely. The IO division can assist the Requesting Unit to understand the common practice for international allowance packages in different country contexts.
   4. Other Costs: MGIC EOR firms charge setup and monthly administrative fees at rates determined by the proposed base salary. These fees, along with any necessary special insurance coverages, local permits and licenses, legal representation, or administrative support exceeding IO’s capacity, will be borne by the Requesting Unit.

Instructions

1. Requesting Units interested in employing personnel outside the U.S. should contact the IO division at globalhub@umaryland.edu as soon as the proposed recruitment is contemplated.
2. IO will convene an exploratory meeting with the Requesting Unit to discuss the position, the proposed candidate, the candidate’s personal situation (citizenship, dependents, current residency), the funding source and potential restrictions (e.g. sponsor regulations governing the hiring entity of designated key personnel positions), and the viable options for employment.
3. IO and the Requesting Unit will first explore the two Alternative Options for direct UMB employment described in Section I above: a U.S.-based position with business travel, or a part-time UMB position based in the U.S. Implications such as costs, sponsor allowability, feasibility for performance of job responsibilities, and supervisory/management expectations will be considered, and UMB’s Central Human Resources division will be engaged as appropriate.
   1. If either of the above two options is agreed, this Procedure concludes and the Requesting Unit will follow normal UMB hiring procedures for a domestic employee.
   2. The IO division will review institutional agreements for a split arrangement that includes part-time UMB employment (alterative option #2 under Section I) to support operational risk management, including international insurance eligibility.
4. If MGIC is identified as the only viable option out of the three Alternative Options identified in Section I, the Requesting Unit will provide the job description, expected base salary, and proposed candidate’s citizenship, which IO will use to consult an MGIC country office or MGIC EOR contractor to confirm viability and obtain an initial quote for setup and monthly administration.
5. IO conducts additional research on local employment laws and corporate compliance requirements in the country, such as residency requirements, tax rates, statutory benefits, etc., using available information from public sites, professional networks and MGIC’s EORs. Note: this due diligence requires time, particularly in countries where legal and compliance information is not easily found.
6. The Requesting Unit consults the Office of Research and Development (ORD) if warranted for sponsor regulations and prior approval requirements pertaining to designated Key Personnel positions, budgets, and academic research oversight.
7. IO holds follow up meeting with Requesting Unit and includes Central HR and Legal Counsel, to jointly assess costs, risks and benefits of MGIC employment based on available information.
   1. If, following this extensive analysis process, neither MGIC nor the two alternative options for UMB direct employment are determined viable, the Requesting Unit may submit a policy exception, for the executive Committee’s consideration to recommend or not recommend direct full-time international employment to the UMB President, as described in Section 1.
8. Following concurrence of the attendees at the follow-up meeting to proceed with MGIC employment, the Requesting Unit will complete the International Work Request Form (see below) and obtain the approval signature of their respective Dean or VP.
9. The Requesting Unit submits the completed International Work Request Form to the IO division (globalhub@umaryland.edu). IO will circulate the completed form to involved parties from HR, Legal Counsel, and other UMB departments as appropriate to solicit any final feedback on the Requesting Unit’s proposed management plans.
10. Upon receipt of the International Work Request Form containing the Dean’s or VP’s approval signature, IO will work with the Requesting Unit’s Hiring Manager and the MGIC EOR provider to complete the MGIC hiring process.

    Final Notes:

    • While the diligent process outlined above should prevent surprises or unexpected obstacles to hiring an individual through an MGIC EOR, an offer of employment cannot be guaranteed until the EOR firm completes its required procedures, background checks if required, and host government work authorizations if required, and issues an employment contract. The Requesting Unit is not permitted to enter into any binding agreements, written or verbal, with any new or existing employee until the MGIC EOR has notified IO of clearance to hire.
    • The MGIC President retains the right to deny employment through MGIC in consideration of organizational risk assumed by or transferred to MGIC.

Final approval and arrangements for remote work outside Maryland are at the discretion of management and are not grievable. (See relevant policies: UMB II-4.00(A) and UMB VII-8.00(A))

International Work Request Form

Part 1 - EMPLOYEE INFORMATION

1. Employee Name:  
2. Employee ID (if applicable):
3. Employee Nationality/ies:
4. Department Code:
5. Department Name and UMB School:
6. Supervisor Name and Title (Point of Contact for this request):
7. Job Title of Position Proposed to Work Out of U.S.:
8. Country in which Employee is proposed to work:
9. Does Employee already have valid Work Authorization in country of proposed residence?
10. Anticipated Start Date of Work Outside the U.S.:
11. Do the employee’s duties require licensure by the local government? If yes, does such licensure need to be obtained prior to the employee’s date of hire? 

Part 2 – Justification for Foreign Location and Employee Management Plan

Requesting Departments must present a comprehensive description of the rationale, operational details, and estimated financial costs for this Request. The Department is expected to consult with appropriate offices to help analyze potential risks, as described in Section IV and as new questions or issues arise while following the procedure.

1. If the position’s primary duties are required to be performed outside the U. on a full-time basis, describe those duties and the reason they cannot be performed in Maryland (e.g., award-funded field research in another country).
2. If foreign location is not a requirement of the position per question 1, describe how the position is operationally critical. (Operationally critical means that the mission or function of the unit cannot continue without significant disruption unless the position is filled or where the vacancy would cause a loss of federal or other sponsored research funds.)
3. If this position is supported by external funding, please identify the source(s) of funds.
4. How long do you anticipate the foreign work arrangement will last? Describe any conditions that might shorten or lengthen the arrangement.  
5. Does the Department anticipate regular travel by the employee to the United States for specified work assignments? If so, describe the expected frequency, duration and purpose.
6. Describe how the Department plans to supervise the employee, and to hold the employee accountable for compliance with USM and UMB Policies and Procedures.
7. Do the employee’s duties require frequent collaboration with employees or students at UMB and if so, what steps will the department take to ensure that this can be accomplished without jeopardizing efficiency (e.g., expectations regarding work hours, virtual meetings, etc.)?

1. Part 3 – ESTIMATED ANNUAL COSTS BEYOND BASE SALARY

 

List in detail the estimated expenses for YEAR ONE, above the approved employee Base Salary. It is understood that costs may change in subsequent years. Consult with IO to obtain the MGIC EOR’s initial cost estimates for administrative fees, work authorization and licensure fees, statutory employer contributions to national benefits schemes and other legal obligations; and to consider other appropriate discretionary allowances and employee maintenance expenses.  Suggested items include:

Employee Legal Status (estimates provided by EOR):

• Host country residency and work permit fees
• Professional licensure and professional liability insurance
• Other

UMB Obligations (estimates provided by EOR):

• Mandatory contributions to national Social Costs
• EOR Startup and monthly Administrative Fees
• Other

Statutory Benefits (including for authorized dependents, as required by local labor law, estimates provided by EOR):

• Medical, Dental and Vision Insurance
• Worker’s Compensation
• Life insurance
• Other

Discretionary Allowances (as approved by UMB and sponsor regulations), FOR EXAMPLE:

• Home Leave
• Employee income tax and employee mandatory contribution offsets
• Housing and security services
• Dependent education
• Contribution to individual retirement plan in lieu of State of Maryland plans
• S. medical supplemental insurance coverage
• Currency exchange loss offsets (for payroll made in local currency)

 

DEAN/VP REVIEW AND APPROVAL:

I have reviewed this Request and affirm that this request is consistent with UMB’s Out of State Work Policy and the UMB Procedure for Work Outside the U.S.

I have carefully reviewed the relevant costs and benefits to my School/Unit and have determined that risks associated with this Request can be justified based on the benefits it provides to the University.

I understand that the School/Unit will become responsible for any expenses associated with additional risks and burdens. This may include expenses for engagement of outside legal counsel, expenses associated with statutory and regulatory compliance, and/or the cost of utilizing an Employer of Record.  

I confirm that my School/Unit will comply with the policies and procedures of MGIC and its contracted Employer of Record.  I further confirm that my School/Unit will adherence to applicable laws of the country in which work is performed, and requirements governing the employee’s contract terms and conditions.

_______________________________                 Date: __________________________

Name

_______________________________

Title

_______________________________

Signature

 

 

FOR IO USE ONLY:

EOR MSA Addendum signed by IO on Date:

 

Personnel File documents complete and filed in MGIC HR files on Date:

 

Employee Onboarding process initiated with EOR on Date:

 

Approved discretionary benefits and other payments to be paid directly through MGIC (not through the EOR) are indicated below:

 

 

Special Conditions contingent for this hire are indicated below:

 

 

IO HR Review Completed By:

 

_______________________________                 Date: __________________________

Name

_______________________________

Title

_______________________________

Signature