Relocation glossary
Plain definitions of the terms that come up when moving employees: packages and policies, visas, tax, and the moving process itself. Written for founders, People teams, and anyone relocating for work.
The set of benefits an employer provides to move an employee to a new location for work. A typical package covers some combination of moving and shipping costs, temporary housing, travel, visa and immigration fees, and settling-in support. Packages range from a fixed cash payment to fully managed door-to-door services, and their value commonly runs from a few thousand dollars to well over $100,000 for senior international moves.
A relocation benefit paid as a single cash amount that the employee spends however they choose. Lump sums are simple for employers to administer and give employees flexibility, but shift all the planning, vendor selection, and risk onto the employee, and are usually taxed as ordinary income unless the employer grosses them up.
A relocation benefit delivered as coordinated services rather than cash. The employer, directly or through a relocation provider, arranges the move: shipping, housing, immigration, and settling-in, and pays vendors directly. Managed relocation costs the employer more per move than a lump sum but produces more predictable outcomes and less employee time lost to logistics.
A firm that administers employee relocations on behalf of employers, coordinating vendors such as movers, immigration counsel, and destination service providers. Traditional RMCs serve large enterprises with high-volume programs. Newer platforms use software and AI to deliver the same coordination for companies with lower move volumes at lower cost.
The corporate function responsible for moving employees across borders: international relocations, work visas and immigration compliance, tax obligations, and assignment policy. In large companies global mobility is a dedicated team inside HR; in smaller companies it is typically handled ad hoc by People or Operations teams, often with outside providers.
A broader strategy of deploying people where the business needs them, spanning international relocation, remote hiring across borders, short-term assignments, and internal transfers. Companies use talent mobility to access skills unavailable locally, retain employees whose circumstances change, and open new markets with experienced staff.
An employer's formal support of a foreign national's work visa application, including filing petitions, paying government fees, and attesting to the role and salary. Sponsorship obligations vary by country and visa class. In the US, sponsoring an H-1B typically costs an employer several thousand dollars in government and legal fees per employee.
The legal authorization a person needs to be employed in a given country, established by citizenship, permanent residence, or a valid work visa or permit. Employers are generally required to verify right to work before employment begins and can face penalties for employing someone without it.
A government authorization allowing a foreign national to work in a country, usually tied to a specific employer, role, or duration. In many systems the work permit is distinct from the entry visa: the permit grants permission to work, while the visa grants permission to enter and stay.
The primary US work visa for specialty occupations requiring at least a bachelor's degree, widely used for software engineers and other technical roles. Cap-subject H-1Bs are allocated by an annual lottery; universities and research institutions are cap-exempt. The visa is employer-sponsored, initially valid for three years, and extendable to six.
A US work visa for individuals with extraordinary ability, demonstrated through awards, publications, press coverage, judging, original contributions, and similar evidence. The O-1A covers sciences, business, and technology; the O-1B covers arts. It has no lottery or annual cap, which makes it a common alternative to the H-1B for accomplished founders and engineers.
A US intracompany transfer visa for employees who have worked at least one continuous year in the last three for a related entity abroad. The L-1A covers executives and managers; the L-1B covers employees with specialized knowledge. Startups can use the L-1 to move a founder or early employee from a foreign entity into a new US office.
A US work classification for Canadian and Mexican citizens under the USMCA trade agreement, covering a defined list of professional occupations including engineers, scientists, and analysts. Canadians can apply directly at the border with a job offer and credentials. The TN has no annual cap and is renewable indefinitely, but does not itself lead to a green card.
A US work visa exclusively for Australian citizens in specialty occupations, similar to the H-1B but with its own annual quota that has never been exhausted, lower fees, and a simpler process. Spouses of E-3 holders can apply for work authorization.
The main UK work visa, requiring a job offer from a Home Office licensed sponsor, a role on the eligible occupations list, and a minimum salary threshold. It replaced the Tier 2 (General) visa in 2020, can lead to settlement after five years, and requires the employer to hold a sponsor licence before hiring.
A work and residence permit for highly qualified non-EU nationals, available in most EU member states. It requires a university degree or equivalent experience and a job offer above a salary threshold that varies by country. The Blue Card offers a path to long-term residence and easier mobility between member states than national permits.
A residence permit allowing remote workers to live in a country while working for employers or clients abroad. Dozens of countries offer them, including Portugal, Spain, and the UAE, typically requiring proof of remote income above a monthly threshold. They authorize residence, not local employment, and tax treatment varies significantly by country.
A salary adjustment compensating an employee for the difference in living costs between their home and destination locations, commonly used for international assignments to high-cost cities. COLA is usually calculated from third-party cost indices and applied to the portion of salary spent on goods and services rather than the whole salary.
An additional payment an employer makes to cover the taxes an employee owes on taxable relocation benefits, so the benefit is worth its face value after tax. Since the US made most employer-paid moving expenses taxable income in 2018, gross-ups have become a standard and significant line item, often adding 40 to 60 percent to the cost of the benefit being grossed up.
A fixed daily allowance covering meals, incidentals, and sometimes lodging during business travel or the transition period of a relocation. Employers use per diems to avoid itemized expense claims. Government-published per diem rates by city are a common benchmark and, within limits, can be paid tax-free in many jurisdictions.
Furnished short-term accommodation provided to a relocating employee between arrival and moving into permanent housing, typically for 30 to 90 days. It bridges the gap while the employee searches for a home, waits for a shipment, or completes local requirements like credit history needed to sign a lease.
On-the-ground support at the new location: neighborhood orientation, home search, lease negotiation, school search, banking setup, and local registrations. Traditionally delivered by local consultants and billed by the half-day or day, destination services are the part of a relocation that most shapes how quickly an employee becomes productive and settled.
The final phase of relocation support, helping an arrived employee establish daily life: utilities, banking, healthcare enrollment, driver's licensing, phone plans, and local registrations. Settling-in is distinct from the physical move; skipping it is the most common reason relocated employees lose weeks of productivity after arrival.
The packing, transport, and delivery of an employee's personal belongings, by sea container, air freight, or road. International sea shipments commonly take 6 to 12 weeks door to door and are priced by volume. A typical international household shipment costs $5,000 to $15,000 or more depending on volume, route, and season.
An employer's ongoing obligations for foreign national employees: verifying right to work, maintaining visa sponsorship records, meeting salary and role conditions attached to permits, tracking expiry dates, and reporting changes such as role moves or terminations to the immigration authority. Failures can result in fines, loss of sponsorship licenses, and bars on future hiring.
A third party that legally employs workers in a country where a company has no entity, handling payroll, taxes, benefits, and local labor law compliance while the worker takes direction from the client company. EORs enable hiring without relocation or entity setup, and are often weighed against relocating the person or opening a local entity.
Planning a move? Check visa options with the visa checker, read the visa route guides, or price the move with the cost estimator.