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Career departure

Author: Alison Burgin

Published: 25/09/2008 00:00

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Working abroad is a great way to experience a different culture and enhance your CV — but make sure you do your homework before jetting off, says Alison Burgin

There have been some great opportunities abroad for British legal professionals for a while now, but the number of lawyers who are willing to broaden their horizons has risen noticeably in recent months. Law firms are faring better than a lot of industries in the downturn, but the overall state of the economy has given many reason to take the first exploratory steps into a career overseas.

However, is relocating abroad right now really the shrewdest move? The danger is that recent dramatic economic events encourage lawyers to rush into a move without making sure the new role suits them.

Certain things need to be right: basic salary, the accompanying benefits and — crucially — the opportunity to accelerate your career and find exciting and challenging work. As with any career move, the motives behind the change will dictate its success. Time spent overseas can prove extremely advantageous, but only if an employee is doing it for the right reasons.

Lifestyle and culture

Aside from escaping the credit crunch, the main motives for lawyers looking for a job overseas are the quality of work on offer and the opportunities for career advancement. Another factor in a move abroad — be it within private practice or in-house — is lifestyle change. This is a major reason behind relocation, with some of the most popular destinations at my firm, Badenoch & Clark, being Australia, New Zealand and Dubai.

For employees looking for a more extreme change in culture and lifestyle — and perhaps a boost in pay — a ‘hardship posting’ is a further option. These tend to crop up more for in-house practitioners than for private practice lawyers.

Mining and oil companies offer such opportunities, with offices often tucked away in corners of the world that wouldn’t be first on most people’s lists of vacation destinations. Oman and Nigeria are relatively popular examples of ‘hardship’ locations.

Financial rewards

Employers usually recognise the sacrifices that are made when someone chooses a ‘hardship posting’ by offering attractive pay packages. This generally means an ‘ex-pat’ salary (paid in sterling), which includes all accommodation and travel costs.

Typically, pay will be equivalent to a UK-level salary, but a tax-free bonus of up to 50% is sometimes offered on top of this to compensate for cultural differences.

While base salaries on offer in Singapore and Hong Kong are largely commensurate with those in the UK, some people have been able to negotiate uplifts. Lawyers also benefit from favourable tax regimes in these countries.

Only recently, one of the magic circle increased its basic salaries in the United Arab Emirates (UAE) by 15%. Salaries in the UAE have been rising to come into line with UK packages for some time. Now, as the UK picture begins to slow, UAE wages continue to rise, meaning the country is becoming more financially attractive for many lawyers, especially when a variety of tax-free benefits are put into the equation.

Dubai, in particular, has very attractive financial rewards. It is a location that has long offered a variety of work to UK lawyers, with huge tax-free incentives. The area was once considered a ‘hardship posting’, but over the past 20 years it has changed to the extent that it is now deemed a premium location.

Russia, specifically Moscow, provides a very interesting example of the financial incentives available for lawyers considering a period abroad. A candidate looking to find a role in Moscow will be typically offered a top London City rate, be provided with a housing allowance and only pay about 13% in tax. In real terms, that equates to quite a significant jump in pay from the UK.

However, the financial reward is not given purely out of generosity — the cultural differences experienced by UK lawyers working in Moscow have led to difficulties in the past. In particular, the greater level of government involvement than many UK lawyers are used to, has caused problems. On top of that, Moscow is a hugely expensive city to live in; more pricey even than Tokyo or London.

Moving back

For those who find the going a bit too tough and want to return back to the UK, there can be a big price to pay. It is often not as simple as saying: “I want to go back!” Some companies operate a ‘claw-back’ policy to discourage lawyers from throwing in the towel too early. This means that those who return prematurely have to shoulder all the relocation costs themselves, plus any tax ramifications that may arise if the move has been for less than a year.

This has proved quite an effective way of ensuring people see out their contracts. Lawyers should be careful to look beyond the potential financial rewards and think about the effects of any lifestyle and cultural changes before making such a move. Equally, employers need to weigh up the need to ensure that assignments are completed with the potential effects of forcing a lawyer to remain in a place where they are unhappy.

Transferable skills

What needs to be evaluated is the relevance of the posting to the UK market. It can prove difficult to make the transition back to London if the work you were doing is specific to the country in which you were based. And even if there is a crossover in terms of work, bear in mind that staying in any role for a long period of time can limit career progression; international posts are no different in this respect.

Ideally lawyers would normally stay in a role overseas for 24-36 months. This gives enough time to gain vital experience without making the return more challenging because of a lack of UK market experience.

An overseas position can add great weight to a lawyer’s career, but employers must make employees aware of the challenges as well as the benefits. Knowledge of all tax, cultural and financial eventualities are key to making sure things run smoothly.

Alison Burgin is executive director of the legal division at Badenoch & Clark.

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