Coronavirus, EU Travel Ban, and Global Mobility

With continued concerns related to the COVID-19 virus and the new travel ban put in place by President Trump on March 11, 2020, the following areas may have an impact on your employee mobility programs:
 
Travel disruptions: With the travel ban from the Schengen Area, which is comprised of 26 European states, employees with existing travel bookings may have travel plans disrupted. It has been reported that travel from the Schengen Area may be funneled to specific US airports to allow for effective, efficient screening. This means that although an individual may be eligible to enter the country, the travel routing may need to be modified to accommodate this provision. The process will be defined by the Secretary of Homeland Security in consultation with the Secretary of State, and we anticipate more information will be released in the coming days.
 
Citizenship: An individual’s status will be important, as will the status of any accompanying family members. Although an employee might be a US citizen, it is prudent to understand the citizenship of all parties traveling. Immediate family members of US citizens or legal residents should not be prevented from entry. However, it is not clear how the process with Homeland Security will work and whether citizens and their families might still be subject to screening and/or other re-routing or delays prior to their eventual entry.
 
Departing Schengen Area of Europe for US: individuals completing assignments or business trips within the Schengen Area and returning to the US may be subject to delays, impacting their ability to exit. End of lease dates, and the potential need for temporary accommodations prior to exiting, may arise for relocating employees or international assignees. It should probably be anticipated that the US entry restrictions might impact flight availability, as the airlines may reduce capacity based on an expectation of a reduction in bookings.
 
Temporary Accommodations: For individuals inbound to the US, there may be possible entry delays, which can result in an impact to booking temporary accommodations. If temporary housing is secured based on a scheduled arrival date, and the employee is delayed or even quarantined, there will still be an obligation to pay for the accommodations, unless it can be re-rented. NuCompass is working with clients to evaluate point of origin and citizenship considerations on a case-by-case basis. Options include booking hotel stays for initial arrival, since a hotel can more easily be cancelled. Once the employee is cleared, a subsequent booking into temporary accommodations can be arranged. Added costs may be incurred in these situations, and the employee experience may be impacted.
 
Household Goods shipments: The recent announcement limiting entry to the US from Europe was initially believed to apply to cargo; it has since been clarified that it applies to people, not cargo. Though cargo is not included in the ban, it will have a significant impact on air freight between the U.S. and effected EU countries. Capacity will be limited, and air freight rates are expected to increase, and transit times have become extended. This is affecting all import and export shipments, regardless of proximity to Asia.
 
NuCompass will continue to closely monitor the situation and take actions necessary to assist our clients and their relocating employees.