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12.1.1 Code of Conduct

Last updated on:
12/06/2013

The policies and principles set out in Chapter 1 of the Administrative Guide relating to university code of conduct, organization, academic governance, academic and business relationships with third parties, conflict of commitment and interest, and privacy policies apply to the global activities of Stanford University and its affiliates.

Authority: 

Approved by the President.

12.1.2 Anti-Bribery

Last updated on:
12/06/2013

Members of the Stanford community are required to act with honesty and integrity and comply with applicable laws at all times when transacting University business. This guide memo clarifies that all forms of bribery and corruption are absolutely prohibited, provides guidance regarding what constitutes bribery and corruption, and requires reporting of actual or suspected incidents of bribery and corruption.

Authority: 

Approved by the President.

Applicability: 

Applies to these members of the Stanford community:

  • Faculty, Staff, employees of Stanford affiliates and Students
  • Members of the Board of Trustees
  • Consultants, vendors, and contractors doing business with the University; and
  • Volunteers who assert an association with the University

Additional Stanford University guide memos may provide guidance on issues addressed in this guide memo. In particular, please refer to Guide Memos 1.1.1: Code of Conduct, 1.5.1: Political Activities, 1.5.2: Staff Policy on Conflict of Commitment and Interest, and the Fundamental Standard.

1. Purpose

Members of the Stanford community are required to act with honesty and integrity and comply with applicable laws at all times when transacting University business. This guide memo clarifies that all forms of bribery and corruption are absolutely prohibited, provides guidance regarding what constitutes bribery and corruption, and requires reporting of actual or suspected incidents of bribery and corruption. This guide memo has been drafted to comply with the requirements of the U.S. Foreign Corrupt Practices Act and the United Kingdom Bribery Act. Many countries also have local laws prohibiting bribery which must be followed by members of the Stanford community when conducting activities in or involving those countries, including contracting with third parties whose acts can pose liability for the University under the FCPA and local laws. Bribery does not need to take place in the foreign country to fall within the purview of FCPA or local anti-bribery laws. For example, entertainment provided in the United States for the purpose of influencing decisions and related activities could violate the FCPA and local anti-bribery laws. In addition to institutional consequences to the University, individuals who violate anti-bribery laws may be subject to personal fines or criminal prosecution.

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2. Definitions

a. Bribery

(1) To offer, give, or promise to another person any financial or other advantage with the intention to induce or reward that person or another person to perform his or her responsibilities or duties improperly or to give an improper advantage.

(2) To request, agree to receive, accept, or direct a financial or other advantage for oneself or others if such advantage is intended to induce or reward improper performance of one’s responsibilities or duties or to gain an improper advantage.

(3) To do either (1) or (2) without the intention to induce or reward improper performance of duties or responsibilities or gain an improper advantage, but which nonetheless could reasonably be interpreted as such an inducement or reward.

b. Facilitation Payments
Facilitation or “grease” payments are any payments, no matter how small, given to a government official to increase the speed at which they do their job. Such payments are not permitted under this policy. Only a payment to speed up a governmental act that is not discretionary in nature would potentially be considered a permissible payment. For example, this could include speeding up a business registration license or permit approval or customs processing, only if such government acts simply involved the payment of a standard fee and the permit or registration was automatically issued.

c. Public Official
Public officials include not only employees working in government departments, but also may include employees of government owned or controlled commercial enterprises, universities and research institutions, international organizations, political parties and political candidates. Public officials also include the family members of any of the employee groups listed above.

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3. Policy

a. Bribery Prohibited
Stanford University has a zero tolerance policy towards bribery and corruption. All forms of bribery are prohibited. A bribe does not actually have to take place or be accepted; offering or agreeing to accept a bribe is itself a violation of the Policy. Facilitation payments are not permitted under this guide memo, even where such payments may be allowable under U.S. law.

b. Forms of Bribery
A bribe is defined as anything of value. Bribery can take many forms in addition to cash, for example:

  • Cash equivalent such as stock shares;
  • Unreasonable gifts, entertainment, travel expenses or other hospitality;
  • Unwarranted rebates or excessive commissions (e.g. to sales or marketing agents);
  • Unwarranted allowances or expense reimbursements;
  • Political/charitable contributions;
  • Uncompensated use of University services or facilities;
  • Kickbacks; or
  • Anything else of value

c. Prevention of Bribery
Members of the Stanford community should assess the risk of bribery in the activities under their purview and take appropriate care to prevent and detect bribery. Certain countries have a high incidence of corruption, and particular care should be taken when undertaking activities in or involving those countries. For information regarding high risk countries, see the Transparency International Corruption Perceptions Index. Appropriate steps could involve training of employees concerning this guide memo and reporting requirements, requiring due diligence before engaging third party service providers, ensuring that contracts contain anti-bribery provisions, and requesting guidance from the Office of the General Counsel before expanding operations into a new geographic location. Failure to take such steps to prevent and detect bribery creates legal risk for the University and potential personal liability for individuals involved.

d. Dealing with Government Officials
While this Policy applies to both the public and private sectors, dealing with public officials poses a particularly high risk related to bribery and corruption. Members of the Stanford community should be especially cautious when dealing with public employees, including faculty and staff at public universities or workers at state-owned enterprises. Local laws often severely limit what a public employee may receive and there can be greater legal liability for giving inappropriate advantages to a public employee.

e. Dealing with Third Parties
Stanford could be liable for improper payments made by a third party acting on its behalf, such as a contractor, consultant, agent, or research partner, even if the University did not authorize the payment. When entering into a relationship with a third party, members of the Stanford community should complete sufficient due diligence to ensure that the retained individual or organization does not have a history of corrupt payments, and understands and agrees that they are not authorized to engage in bribery on Stanford’s behalf.  The level of due diligence required may vary depending on the level of risk involved in the transaction, e.g. whether the third party will be interacting with government officials on behalf of the University or whether the services will occur in a country that involves a high risk of corruption. Care should be taken to ensure vendors’ understanding of and commitment to compliance with anti-bribery laws when entering into engagements with expeditors to provide logistical support for international activities such as air and ocean freight consolidation and forwarding, vendor consolidation, customs clearance, and distribution activities. Faculty and staff intending to retain firms for freight forwarding or customs services should first consult with Procurement (www.stanford.edu/group/fms/fingate/finsystem/iprocure/howto/create_standard_req.html).

f. At a minimum, members of the Stanford community should ensure that third parties do not have a history of violations of anti-bribery laws, provide them a copy of this guide memo, which can be located at acp.stanford.edu/compliance/anti-bribery, and regularly audit their activities to ensure ongoing compliance. Any agreements with third parties must include provisions that they will comply with the FCPA and any applicable local anti-bribery laws.

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4. Reporting Concerns and Non-Retaliation Policy

a. Questions regarding this Policy and Reporting Suspected Violations
For further information regarding this Policy, contact the Office of the General Counsel (650-723-9611) or the Office of International Affairs (650-725-0076). Known or suspected violations of this guide memo must be reported to the Compliance & Ethics Helpline (650-721-2667 or compliance@stanford.edu) or to the Office of the General Counsel.

b. Consequences
Violations of this guide memo could result in criminal or civil penalties against both the University and involved individuals in the United States and abroad. Some countries take broad jurisdiction over bribery and corruption offenses, so violations in one country could result in extradition to and prosecution in another country. Violations of this Policy could also result in appropriate disciplinary action up to and including termination from employment or other relationships with the University.

c. Non-Retaliation Policy
The University is committed to ensuring that members of the Stanford community can speak up with confidence if they have any concerns or need to ask for guidance. If any person suspects or observes anything that they believe might be a violation of this guide memo, they are obligated to report it and cooperate in any investigation if requested. Stanford will not tolerate retaliation against any person who makes a good faith report or participates in an investigation of a suspected violation.

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12.2.1 Global Staff Personnel Policies

Last updated on:
03/11/2014

These policies describe the development of, administration of, and decisions about policies affecting personnel of Stanford University, a university entity and/or its affiliates, whose primarily work location is outside of the United States.

Authority: 

Approved by the Vice President for Human Resources.

1. Purpose

Global staffing policies and procedures are intended for supervisors and administrators with current or anticipated ongoing operations outside of the US.

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2. Policy Authority

 a. Policy Development
Global personnel policies are approved and authorized by the Vice President of Human Resources (VP of HR), in consultation with other University officials.

b. Policy Revisions
Send proposals for policy changes to the VP of HR for study and recommendation. Approved changes are published in the Administrative Guide and may be communicated in the Stanford Report or by written notice to officers and administrators. Changes in policies for global benefits plans are reflected on the University Human Resources website for Global Staff Employees, and brochures of the individual plans.

c. Policy Interpretation
Questions regarding policy interpretation should be brought to the attention of the Human Resources Manager responsible for the employee’s unit and/or Global HR Programs.

d. Alleged Policy Violations
Suspected policy violation information should be brought to the attention of management, Human Resources Manager responsible for the unit and/or Global HR Programs.

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3. Administration of Global Staff Personnel Policies

University officers and administrators, both academic and nonacademic, are responsible for the administration of University policies and procedures including those applicable to staff supporting Stanford global operations.

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4. Exceptions to Global Personnel Policies

In the event an exception to established policy appears to be necessary, the unique facts of the situation should be discussed in advance with an appropriate representative from Human Resources, usually the Global HR Programs Manager. When necessary, cognizant Vice Presidents, Vice Provosts or University officers will be included in the decision-making of proposed exceptions. Exceptions to personnel policies must be approved by the VP of HR, or his/her designee.

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12.2.2 Recruiting and Hiring of Global Staff

Last updated on:
03/11/2014

This policy covers all phases of the recruiting and hiring process outside of the US and the corresponding areas of responsibility. The policy applies to all individuals who are paid by Stanford University, a university entity and/or its affiliates outside of the US.

Authority: 

Approved by the Vice President for Human Resources

Purpose: 

To provide policies and guidance that support recruiting and hiring a diverse and talented workforce to support Stanford operations outside of the US. To accomplish this, Stanford strongly encourages hiring supervisors to develop the broadest possible applicant pool allowing the best and the brightest candidates - internal and external - to fairly compete for all open positions. Through fair and open competition and application of equitable evaluation criteria, Stanford hires the best available candidates.

1. General Recruiting and Hiring Responsibilities

a. Global HR Programs
University Human Resources and Global HR Programs are responsible for developing, monitoring and overseeing employment policies and providing the University with support services necessary to attain staffing objectives outside of the US.

b. Human Resources Manager
Human Resources Manager is the person responsible for administering recruiting and hiring policy for each unit or organization, in consultation with Global HR Programs.

c. Hiring Supervisors
Hiring Supervisors are those faculty and staff designated to make staff hiring decisions. Hiring supervisors are responsible for making such decisions in accordance with the policies and procedures established by the University and set forth in this Guide Memo. Each hiring supervisor is accountable for his/her actions in matters relating to applicable sections of this policy and compliance with regulations governing employment and performance in the country of hire. Questions on these policies should be referred to the Human Resources Manager and/or Global HR Programs.

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2. Recruiting and Hiring Policies

a. Compliance with Laws in Country of Hire
Employees assigned or working outside of the US are subject to applicable law in the country of hire as well as University policy and procedures when not in conflict with in-country law.

b. Business Purpose
Hiring, transfer or assignment of regular staff outside of the US must be supported by a demonstrable University business purpose, and approved in writing by the cognizant School Dean or VP. Copies of such approvals should be forwarded to Global HR Programs and FMS/Global Business Services.

c. Administrative Costs
Employing workers outside of the US typically involves significant additional costs in light of the regulatory and operational complexity involved in such assignments. Accordingly the supervisor hiring or assigning the employee outside of the US is responsible for ensuring that the added expense of such an assignment is covered by the applicable budget for the duration of the expected employment.

d. Work Authorization
Work authorization and immigration issues may require significant lead time. HR Managers are responsible for ensuring that appropriate documents are secured prior to employment outside of the US. Human Resources cannot process a hire until the proper work authorization is obtained. Candidates who are citizens or hold on-going work authorization for the country in which the project is located are considered “in-country” hires. These employees may be paid in the country’s currency by a University-approved payroll provider.

e. Consulting Arrangements
It should be noted with caution what may appear to be a consulting arrangement by US standards could in fact constitute an employment relationship in another country, potentially triggering employment, tax and other regulatory considerations.

f. Employment Rights and Preferences of Former and Current Regular Staff
In recognition of the unique nature of global operations, campus policy relating to reemployment does not apply. The University will reemploy or return to active employment workers in the country of original hire to the extent required by law.

g. Employment of Related Persons
University guidelines (as detailed in 2.1.2.c) regarding the Employment of Related Persons apply to global employees.

h. Age as a Hiring Factor
Consideration of age as a hiring factor will be in compliance with employment regulation in the country of hire.

 

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3. Policies and Practices – Search Phase

a. Job Descriptions
Global HR Programs will maintain a library of global job descriptions in a standard format. The hiring supervisor identifies the functions of the job, defines and describes the duties and responsibilities of the position, including required training, and develops objective criteria for the selection process. The unit Human Resources Manager reviews the description for clarity and content and works with Global HR Programs to define a recruitment strategy.

b. Announcing Job Openings
All regular vacancies must be listed with the unit’s Human Resource office and Global HR Programs. Due to the specific requirement of working outside of the US, global jobs are not posted online in the Stanford Careers website.

c. Recruitment of Applicants
Hiring supervisors should consult with the unit’s HR Manager, and ask for a copy of the Global Activities Checklist for Stanford University Human Resources Managers.

d. Search Firms
Global hiring situations may require the use of a search firm in the country of hire to develop a candidate pool. Consult with the unit’s Human Resources Manager and Global HR Programs before making any arrangement with an outside firm or agency.

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4. Policies and Practices – Selection Phase

a. Employment Application Form
All interviewed applicants must complete and sign an application form. Applicants may cross out sections on the form that do not apply in the country of hire. At a minimum, the form must contain the employee’s legal name, current and former employer and dates of employment, including latest salary information, and highest education level with name of school awarding degree or diploma.

b. Interviewing
The hiring manager and/or interview committee interviews the candidates selected through the recruitment process. Initial interviews for job assignments outside of the US may utilize video conferencing and/or video recording. In all cases, the final candidate should be interviewed by the hiring supervisor in person. Finalists should be scheduled for a phone or video interview with campus stakeholders if appropriate.

c. Testing
When used, approved tests must directly relate to essential job functions and be given to all applicants or finalists under the same or equivalent conditions. The test must be scored, evaluated and used as a selection factor equally for all applicants or finalists.

d. Reference Checks
The hiring supervisor is required to obtain a minimum of two reference checks from previous employers. Reference checks must be part of the candidate’s evaluation and may be used as a factor in the hiring decision if the information is job-related. No offer of employment can be made before completing the hiring process, including reference checks.

e. Background Checks
Background checks (appropriate to the country in which the hire is being made) are conducted for all final candidates. No offer of employment can be made before completing the hiring process, including a background check.

f. Criminal Records
A criminal record will not automatically disqualify a job applicant. An applicant with a criminal record can only be barred from employment if the circumstances are reviewed by the unit’s Human Resources Manager, Global HR Programs and Employee and Labor Relations. In many countries, potential employers may not request prior criminal conviction records for job applicants. Stanford’s background check provider will advise on what information can be legally obtained during the hiring process.

g. False and/or Misleading Statements
Withdraw from consideration any applicant found to have misleading and/or false statements on the employment application or other documents.

h. Review of Personnel Files
Hiring supervisors have access to personnel files of current and former University employees who are finalists for the position. No offer of employment can be made before the hiring supervisor or Human Resources reviews the personnel files.

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5. Global Employment Decisions, Offers, and Documentation

a. Hiring Decisions
The hiring supervisor and/or next level of management is responsible for judging the relative qualifications of each applicant and for making the hiring decision, consistent with University policy and applicable governmental laws and regulations. The unit’s Human Resources Manager and Global HR Programs is responsible for reviewing proposed hiring decisions and for facilitating compliance with each country’s regulations, laws, and/or University employment policies.

b. Employment Offers
(1) Timing of Offer
Employment offers should be made after the employment action (including in-hire salary) has received all required approvals and after successful completion of the background check.
(2) Employment Offers
An offer letter must be issued by the hiring department to the successful applicant for positions with work locations outside of the US, using an approved country offer letter template. Depending on the country of hire, an employment contract may also be required. All such documentation should be reviewed with Global HR Programs to assure conformity with law in the country of hire and University policy.

c. Documentation and Record Keeping
(1) Pre-Employment
New, transferred, rehired or promoted employees may not start work in the new position until all appropriate forms have been signed and processed. This may include an employment contract or agreement, government tax withholding forms, or other forms as required in the country of hire.
(2) Patent and Copyright Agreement
All employees must complete a Stanford-approved Patent and Copyright Agreement Form as a condition of employment.

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12.2.3 Global Personnel Files and Data

Last updated on:
03/11/2014

Globally affiliated employees are tracked as a separate group in Stanford’s HR information system. Forms to provide the information necessary to enter employment data into the system are available through Global HR Programs. Recordkeeping transactions for new employee information, changes in information and employee terminations are handled by University HR Transaction Services.

HR administration for globally affiliated employees is provided by the responsible school or department’s own HR team. Additional resource is available from University HR through Global HR Programs.

Authority: 

Approved by the Vice President for Human Resources

12.2.4 Hiring Global Employees from Stanford Health Care

Last updated on:
03/11/2014

University policy applies when global employees are hired with previous service from Stanford Health Care. Hospital service applies toward Stanford service, in accordance with Administrative Guide policy.

Authority: 

Approved by the Vice President for Human Resources

12.2.5 Global Compensation of Staff Employees

Last updated on:
03/11/2014

Global hiring requires a variety of approaches to compensation. Stanford practices a total reward strategy to attract, reward, motivate and retain the best possible talent, while taking into account market conditions in the country of hire, programmatic need and budgetary considerations.

Authority: 

Approved by the Vice President for Human Resources

1. Base Salary

Base salaries paid to staff hired in-country should be based on market conditions in each country of work. The salary should be expressed as a gross figure in each country’s currency. Compensation analysis can be provided by Global HR Programs. US salary ranges are not applicable in other countries. Global HR Programs will assist in providing comparable salary data, where available.

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2. Periodic Merit Salary Review

Annual review of salary should be adhered to in all countries where the University or its affiliates conduct operations. In locations where significant inflation or currency fluctuations are an issue, more frequent salary reviews may be necessary.

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3. Performance Review

An annual review of each staff member’s performance should provide summary feedback, recognize strong performers and identify progress toward goals. Salary increases and promotional opportunities are based on the performance review process as followed in each school, department or unit, if in compliance with laws in the country of work.

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4. Other Cash Compensation

Compensation elements in countries outside of the US may follow patterns unique to that country’s culture and/or tax code. In addition to customary base salary as described above, other forms of cash compensation need to be reviewed to assure that University policy as well as regulations and customs of the country of work are followed.

  • Variable/bonus pay
    The University supports the concept of providing additional incentive pay (variable pay, bonus pay) to promote exceptional performance. Funds for such bonus or incentive pay may be made available by schools or departments at their discretion. Bonus awards should be considered if in keeping with practice in the country of work.
  • Currency Exchange Rates/Fluctuations
    The exchange rate used for any payments should be noted on all documents (offer letter, HR records, payroll documentation) relating to the staff member salary, premium and allowances payments. The rate should be fixed and remain in effect until the staff member’s next salary review, unless currency fluctuations (greater than 10%) occur that will necessitate an earlier currency adjustment. It is the responsibility of management to assure adherence to any exchange control regulations that exist at the global location, along with all other required University financial controls and reporting requirements. Global Business Services is available for support.

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12.2.6 Global Vacations

Last updated on:
03/11/2014

Stanford or its affiliated entities will establish a vacation policy in each country in compliance with that country’s laws. Country-by-country policies will be maintained and communicated by Global HR Programs. Stanford employees paid through Stanford’s U.S. payroll will accrue and request vacation time in accordance with regular staff policies.

Authority: 

Approved by the Vice President for Human Resources

12.2.7 Sick Time

Last updated on:
03/11/2014

Stanford or its affiliated entities will establish a sick leave policy in each country in compliance with that country’s laws. Country-by-country policies will be maintained and communicated by Global HR Programs, in conjunction with University Benefits and disability providers. Stanford employees paid through Stanford’s US payroll will accrue and request sick leave in accordance with regular staff policies.

Authority: 

Approved by the Vice President for Human Resources

12.2.8 Miscellaneous Authorized Absences

Last updated on:
03/11/2014

In addition to Vacations, Sick Leave and Paid Holidays, Stanford employees or employees of affiliates may be eligible for paid absences in compliance with regulations in the country of work.

Authority: 

Approved by the Vice President for Human Resources

In addition to Vacations, Sick Leave and Paid Holidays, Stanford employees or employees of affiliates may be eligible for paid absences in compliance with regulations in the country of work. Many countries require paid leaves for circumstances such as the employee’s wedding, meeting civic requirements, etc. Paid time off should be granted as appropriate, with verification of the event and the law requiring payment after consultation with Global HR Programs and/or Global Business Services/Payroll.

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2. Unpaid Absences

The University or its affiliates will provide unpaid leaves of absence as required by law in each country and in conformance with general University policy regarding unpaid leaves. Consult with Global HR Programs if such leave is requested.

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3. Length of Leave

Each leave of absence must be for a definite period with specific starting and ending dates. A leave cannot extend beyond the end of a fixed-term appointment or employment contract.

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4. Return from Leave of Absence

As the law in each country varies widely on the release of employees to return to work following leave, Global HR Programs should be consulted if an employee fails to return to work.

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12.2.9 Separation from Global Employment

Last updated on:
03/11/2014

It is the goal of the University and its affiliates to separate regular employees in conformance with all laws and regulations. Global HR must be consulted before taking any termination or severance action outside of the US.

Authority: 

Approved by the Vice President for Human Resources

12.2.10 Staff Retirement

Last updated on:
03/11/2014

Stanford or its affiliates offer a variety of retirement plans to international employees, depending on the country of work and citizenship of the employee.

Authority: 

Approved by the Vice President for Human Resources.

1. Retirement Plans

Stanford or its affiliates offer a variety of retirement plans to international employees, depending on the country of work and citizenship of the employee. When it is not feasible to offer a retirement plan in a country, a monthly retirement allowance is provided in lieu of a formal retirement savings plan. Refer to Global HR Programs to determine eligibility for retirement benefits outside of the US.

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2. Official University Retirees

University Administrative Guide requirements to be an Official University Retiree may apply to global employees, depending on the relationship of the affiliate. Refer to Global HR Programs to determine eligibility.

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3. Official University Retiree Benefit Programs for Global Employees

  • US Taxpayers returning to the US: Official Retirees who are US taxpayers may participate in University-provided US retiree medical and dental plans on the same basis as campus employees. At age 65, retirees and spouses must apply for and maintain Medicare Parts A and B.
  • Official International Retirees: Official Retirees who are not US taxpayers do not qualify for US retiree medical plans as they are not eligible for Medicare. They may be eligible for Perquisites.
  • Perquisites: All Official Retirees may use University libraries and recreation/athletic facilities and receive staff discounts for certain athletic events, as provided by the rules and policies of the department which provides the services or facilities.

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12.2.11 Grievance Policy

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.2.12 Global Staff Development Program

Last updated on:
03/11/2014
Authority: 

Approved by the Vice President for Human Resources

12.2.13 Global Paid Holidays

Last updated on:
03/11/2014

Paid holidays are determined by each country’s traditions, customs and law. Global HR Programs maintains a list of paid holidays in each country, which is updated and published annually.

Authority: 

Approved by the Vice President for Human Resources

12.2.14 Senior Staff

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.2.15 Global Trial/Probation Periods

Last updated on:
09/01/2014

The trial period is an initial period of service during which the manager or supervisor assesses the performance of a newly hired employee to determine if the employee meets the requirements and expectation of the position. To the extent permitted by each country’s law, each employee will serve a probationary trial period of no longer than 12 months. Supervisors should consult with their unit HR Manager and/or Global HR Programs regarding termination of an employee during or at the end of the trial period.

Authority: 

Approved by the Vice President for Human Resources

12.2.16 Addressing Conduct and Performance Issues

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.2.17 Layoffs

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.2.18 Global Military Leave

Last updated on:
03/11/2014

Each country has its own requirements for maintaining employment during a period of military leave. Stanford and its affiliates will be in compliance with law in the country of work. Please contact the unit HR Manager and/or Global HR Programs if military leave is requested outside of the US.

Authority: 

Approved by the Vice President for Human Resources

12.2.19 Administrative Review Policy

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.2.20 Relocation of Global Faculty and Staff

Last updated on:
03/11/2014

The University may provide relocation assistance for newly hired or transferred staff when it is appropriate based on programmatic need and budgetary constraints of the University or its affiliated operation. Any such expense reimbursement should be documented in the offer or assignment letter. Relocation expenses may be covered with an allowance or by requiring documented receipts of expenditure. In all cases, the University and its affiliated entities will follow each country’s tax rules regarding taxability of relocation payments.

Authority: 

Approved by the Vice President for Human Resources

12.2.21 Global Telecommuting

Last updated on:
03/11/2014

Employee requests to work in a location outside of the United States for an extended period of time require the legal authority to work in the requested country. Sponsorship of work authorization outside of the U.S. is complicated, time-consuming and often not possible depending on each country’s immigration laws.

If the appropriate work immigration status can be obtained, approval of the Dean, Vice Provost, or Vice President of the school/unit and the school/unit’s Human Resources Manager is required to proceed. Global HR Programs and Global Business Services must be consulted regarding employee requests to telecommute outside the country of hire prior to any decision, as the viability of each request is considered based on individual circumstance (such as the employee’s country of residence and/or citizenship, possible dual citizenship, etc.). Work authorization and tax rules in other countries may make such arrangements cost-prohibitive regardless of the level of approval. Any agreement must contain information regarding the University’s right to end the agreement if necessary. Refer to Administrative Guide Memo 2.1.21 for more information about general University telecommuting policy.

An agreement between the telecommuting employee and the employee’s home department is required, and will be placed in the employee’s personnel file. Global HR Programs has draft agreements that include language necessary for global telecommuting situations. The telecommuting agreement may be modified or terminated at any time, with appropriate notice.

Authority: 

Approved by the Vice President for Human Resources

12.2.22 International Employees

Last updated on:
04/01/2014
Formerly Known As Policy Number: 
2.2.13, 23.12

This Guide Memo presents policy for hiring, assigning international employees, and establishing international telecommuting arrangements.

Authority: 

This Guide Memo was approved by the Vice President for Business Affairs and Chief Financial Officer.

Applicability: 

This policy applies to all Stanford University employees, including SLAC and employees covered by collective bargaining unit agreements.

1. Definition

An “international employee” is defined as an employee of Stanford University whose work site is located outside of the U.S. and its territories for any relevant tax period, generally at least six months in any calendar year. This includes employees who are telecommuting under an arrangement specifically approved by their business unit that permits the employee to work remotely in an international location. All individuals defined in Guide Memo 2.2.1, are considered employees for the purpose of this Guide Memo.  Consultants, contractors and volunteers are not covered by this Memo.

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2. Policy

a. Stanford University international employees are subject to all employment and other related laws of the country, city or region in which they work.

The existence of Stanford University employees outside the United States may trigger additional compliance requirements including, but not limited to those relating to local jurisdiction employment, payroll tax and statutory benefits regulations. These requirements are likely to impose significant additional costs on the unit employing the individual. Therefore, hiring or assignment of employees to international positions, or telecommuting from an international location must be supported by an important University business purpose and not be merely an accommodation to the employee.  Such placements must be supported by compelling programmatic justification and demonstrated skill requirements that can only be met by hiring or transferring a Stanford employee in that role. The manager, with support from central administrative offices identified below, is responsible for evaluating the impact of the proposed arrangement on programmatic need and performance management objectives and for ensuring that the arrangement is in compliance with local laws and University information security and privacy requirements.  Further, individual employees bear the responsibility of evaluating and managing the impact of an international working arrangement, including, but not limited to, immigration, personal tax implications and additional costs that may be difficult to anticipate.

The school or unit approving the assignment is responsible for monitoring compliance with University, U.S. and international regulations, including but not limited to: visa and work authorizations,  tax law, employment regulations anti-corruption legislation, in-country banking and money handling, privacy and data protection. Guidance is available from Stanford’s global compliance administrators (Global Business Services, Internal Audit & Institutional Compliance, Risk Management, Office of General Counsel and Global HR Programs).

b. Approval
Approval of the hire, assignment or telecommuting arrangement must be obtained in advance in writing from the responsible Vice Provost, Vice President (or similar level equivalent to the highest administrative person within the organization unit), or his/her designee, identifying the key University business reasons for the assignment. All telecommuting arrangements must be consistent with the guidance provided for Flexible Work Options.  In addition, Global HR Programs and Global Business Services must be consulted prior to any commitments made to employees or prospective employees. Units must anticipate significant lead time and additional funding that may be required to implement a proposed international hire or assignment.

c. International Employment Relationship
Units are advised that it may not be possible to establish a Stanford University employment relationship in another country. If the presence of a Stanford employee triggers a requirement to register in-country, approval is required by the Senior Associate VP for Finance and General Counsel. If the requirement necessitates the establishment of a legal entity in country, approval of both the Vice President of Business Affairs and General Counsel will be required.  There must be persuasive business reasons and expectation of significant ongoing Stanford University presence in country to justify establishment of new legal entities. Due to the very significant compliance obligations of such actions, these steps require due consideration and advance planning. Stanford will not elect registration out of country for a single employee.

If a direct employment relationship in country is not appropriate, it is recommended that consideration be given to outsourcing arrangements with a temporary staffing agency or affiliating with an in-country partner. Global Business Services and Global HR programs are available to consult on available options, and develop required agreements.

d. Administrative Costs
International assignments, hires or telecommuting arrangements require due diligence and may trigger the need for tax and legal consultation outside of the University. The assigning unit is responsible for all externally incurred costs incurred as a result of engaging in an international employment relationship. Failure to notify Global Business Services of the proposed placement of an international employee can result in after-the-fact implications which can be of considerable cost to remedy, and which will be borne by the unit.

e. Taxation
United States citizens and residents are taxed on their worldwide income. The US is signatory to a network of international double tax treaties which may, under some limited circumstances in certain jurisdictions, protect employees from double taxation in the US and the country in which they are working. However, there are many countries in which income and payroll taxes may be due and payable by individual employees, or which may create employer withholding obligations in country that are difficult to discharge due to lack of registration status. Units are cautioned that international taxation can be extremely complex and is fact and circumstance driven, requiring consideration of individual and family circumstances. Consultation with external experts is frequently required and resulting costs will be borne by the assigning unit. By policy, Stanford does not sponsor tax equalization between jurisdictions with different tax rates. Employees are expected to absorb these costs individually, and are strongly advised to consult with a professional international tax advisor prior to committing to an international assignment. 

f. Benefits
In-country statutory benefits and Stanford-provided health and welfare benefit plan choices may be  different from those offered to employees who work on Stanford’s California campus. Contact Global HR Programs for international employee benefit information.

g. International Social Security Totalization Agreements
Employees who have divided their careers between the US and another country may incur dual Social Security taxation on the same earnings in both countries. Totalization agreements may eliminate dual Social Security taxation and may help fill gaps in benefit protection for workers. The US has executed totalization agreements with a number of countries, primarily in Europe. The list of current agreements can be found at U.S. International Social Security Agreements.

Consult with Global Business Services to determine if an assignment may trigger a social security tax exemption and resulting requirement to obtain a certificate of coverage.

h. When Employee Works in California
University Payroll must be notified of any days that the international employee is present in California on Stanford business. Compensation earned on such days is considered California-sourced taxable income regardless of employee’s country or state of residence and is subject to all California tax provisions. The international employee is responsible for submitting the Out-of-State Employee Days Worked in California form to report the number of days an international employee works in California.

Employees who travel frequently, or who are assigned internationally are advised to proactively track days spent  outside of the US, by country, for purposes of individual tax filings.

i. HR Administration
International employees are tracked as a separate group in the University’s HR Information System.  Forms to provide the information necessary to enter the data into the system are available through Global HR Programs.  New employee information, change in information and employee termination actions are handles by University HR Transactions Services.  HR administration for international employees is provided by the unit’s own HR team.  Additional assistance is available from University HR through Global HR Programs; email mailto: globalhrprograms@stanford.edu.

j. Registration of Foreign Activity
Stanford is required to report the number of international employees annually to the federal government. Accordingly, units are requested to register the activity relating to the foreign hire or assignment in the Foreign Activities Registry maintained by Global Business Services.

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3. For More Information

For international employees, visit Global Business Services.

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12.3.1 General Global Personnel Policies

Last updated on:
03/11/2014

Management has the responsibility to assure that any University-affiliated operation adheres to laws and regulations in each country.

University managers should request the services of legal counsel through the Office of General Counsel (OGC) to provide advice on general business and employment-related matters. The OGC will provide resources for competent legal advisors in each country. Global HR Programs is available to consult on employment related matters. Business and financial resources are available through Global Business Services.

Authority: 

Approved by the Vice President for Human Resources

12.3.2 Global Definitions

Last updated on:
03/11/2014

This policy applies to Stanford University employees at least 50% time with an appointment of at least 6 months, whose primary work location is outside of the US. The employee may be paid by a Stanford out-of-country organization or affiliate (in-country hire), or in rare cases may be paid in the U.S. (U.S. hire working abroad). Benefit eligibility may be determined by each country’s law.

Authority: 

Approved by the Vice President for Human Resources

12.3.3 Global Payroll

Last updated on:
03/11/2014

Stanford or its affiliated entities will establish payroll procedures in each country that are in compliance with law and appropriate for University or affiliated staff. Country-by-country procedures will be maintained with University Payroll or the affiliated entity.

Authority: 

Approved by the Vice President for Human Resources

12.3.4 Sexual Misconduct and Sexual Assault

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.5

Refer to Stanford's Administrative Guide Memos 1.7.1, 1.7.2 and 1.7.3, to the extent required and applicable in the country of operation.

Authority: 

Approved by the Vice President for Human Resources

12.3.5 Smoke-free Environment

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.6

Refer to Stanford University's Administrative Guide Memo 2.2.6 to the extent required and applicable in the country of operation.

Authority: 

Approved by the Vice President for Human Resources

12.3.6 Workplace Accommodations for Employees with Disabilities

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.7

Refer to Stanford University's Administrative Guide Memo 2.2.7, to the extent required and applicable in the country of operation.

Authority: 

Approved by the Vice President for Human Resources

12.3.7 Controlled Substances and Alcohol

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.8

Refer to Stanford University's Administrative Guide Memo 2.2.8.

Authority: 

Approved by the Vice President for Human Resources

12.3.8 Global Employee Training

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.9

Some countries mandate employee training requirements, or specific jobs may have training or certification standards. Supervisors are responsible for identifying those employees who perform work requiring specific training and taking actions to enable the delivery of necessary training.

Authority: 

Approved by the Vice President for Human Resources

12.3.9 Gifts and Awards for Global Employees

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.10

Refer to Stanford University's Administrative Guide Memo 2.2.10.

Authority: 

Approved by the Vice President for Human Resources

12.3.10 Violence in the Workplace

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.11

Refer to Stanford University's Administrative Guide Memo 2.2.4.

Authority: 

Approved by the Vice President for Human Resources

12.3.11 Out-of-State Employees

Last updated on:
03/11/2014
Formerly Known As Policy Number: 
12.3.12

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.4.1 Global Benefit Administration

Last updated on:
03/11/2014

Global HR Programs is the responsible party to initiate employee benefits for Stanford and its affiliates in locations outside of the US. Global HR Programs will also typically administer these benefits, unless explicitly delegated to management in a specific country. Employee benefit plans outside of the US may be taxable to the employee, depending on each country’s tax code and reporting regulations. The sections below outline employee benefit provisions as they apply to Stanford University’s global staff or affiliated groupings.

  • In-Country Hires
    Contact Global HR Programs if benefit plans are not already available in the country where Stanford or an affiliate will have in-country hires.
  • US Hires
    Benefits provided to US-based employees working outside of the US will generally reflect, as closely as possible, those provided to University staff residing in the United States.
Authority: 

Approved by the Vice President for Human Resources

12.4.2 Survivor Benefit Plans

Last updated on:
03/11/2014

Stanford makes available an international life insurance plan for affiliated employees outside of the US. US citizens and legal residents may be allowed to continue US-based life insurance programs. Contact Global HR Programs for specific information.

Authority: 

Approved by the Vice President for Human Resources

12.4.3 Health Plans

Last updated on:
03/11/2014

Stanford offers an international health (medical and dental) plan to employees and affiliated employees working outside of the US. In specific countries, a health plan that aligns with that country’s social insurance may be offered instead. In many countries the benefit insurance premiums paid by Stanford on the affiliated employee’s behalf (including contribution toward family premiums) are considered taxable income to the employee. More information is available from Global HR Programs.

Authority: 

Approved by the Vice President for Human Resources

12.4.4 Tuition Privileges

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.4.5 University Housing Programs

Last updated on:
03/11/2014

Does not apply to global employees.

Authority: 

Approved by the Vice President for Human Resources

12.4.6 Disability and Family Leaves

Last updated on:
03/11/2014

Stanford provides disability coverage in each country in compliance with law and appropriate for University and affiliated staff. Leave and salary continuation policies will be maintained and communicated by Global HR Programs, in conjunction with University Benefits and disability carriers. Affiliated employees may be requested to assign their disability benefits to Stanford to continue on regular payroll in each country. Stanford disability leave, family leave, short-term and long-term disability policies remain in effect for all University employees on US payroll.

Authority: 

Approved by the Vice President for Human Resources

12.4.7 University Resources

Last updated on:
03/11/2014

Refer to University Administrative Guide Memo 2.3.6.

Authority: 

Approved by the Vice President for Human Resources

12.5.1 Visas for and Employment of Foreign Nationals

Last updated on:
03/11/2014

The University and its affiliates will comply with each country’s visa and employment law at all times. All affiliated employees must have the legal right to work and reside in the country where work is being performed.

Authority: 

Approved by the Vice President for Human Resources

12.5.2 Directories and Distribution Lists

Last updated on:
03/11/2014

Refer to University Administrative Guide Memo 2.4.2.

Authority: 

Approved by the Vice President for Human Resources

12.5.3 Stanford Identification and Email Accounts

Last updated on:
03/11/2014

The hiring department will be notified of an employee’s or affiliate's Stanford identification number after personal data is entered into the relevant Stanford database. This number is then communicated to the employee to generate a SUNetID and Stanford email address, following the same process used on the Stanford campus. The SUNet ID enables access to secure University websites, specific system authority, and Stanford's computing network. The SUNet ID stays with the employee during all employment, student or other affiliation at Stanford. All security policies for Stanford ID, including AGM 2.4.3 and AGM 6.4.1, apply to globally affiliated employees.

Stanford ID cards are available to globally affiliated employees who visit the campus in California. Affiliated employees must provide a photo or present themselves in person to have a photo taken for the ID card, and must already have a Stanford identification number.

 
Authority: 

Approved by the Vice President for Human Resources

12.5.4 Property and Liability Insurance

Last updated on:
03/11/2014
Authority: 

Approved by the Vice President for Human Resources

12.5.5 Protection of Property

Last updated on:
03/11/2014
Authority: 

Approved by the Vice President for Human Resources

12.5.6 Indemnification

Last updated on:
03/11/2014

Employment contracts or agreements will govern the indemnification of employees in each country.

Authority: 

Approved by the Vice President for Human Resources

12.6.1 Foreign Currency Hedging

Last updated on:
04/01/2014
Formerly Known As Policy Number: 
3.1.6; 34.7

This Guide Memo describes the requirements and considerations associated with entering into foreign currency hedging contracts to hedge operational exposures. This Guide Memo is not applicable to the Stanford Management Company.

Authority: 

Approved by the Vice President for Business Affairs & Chief Financial Officer.

1. Fundamentals of Currency Hedging

As a global University, Stanford faces foreign currency risk from its international business activities. Fluctuations in foreign currencies impact departmental budgets and the cash flows of its overseas operations. The University hedges currency risk exclusively for the purpose of reducing or eliminating volatility in departmental budgets and related cash flows. Currency hedges must be related to business transactions with a high level of certainty where the foreign currency amounts and payment dates are known. Projected receipts and disbursements related to transactions may be hedged by two types of instruments: Spot Contracts and Forward Contracts.

  • Foreign Currency Spot Contract: An agreement with a financial institution to buy one currency and sell another at the current market exchange rate. Spot transactions require an upfront cash payment and settle within two business days.
  • Foreign Currency Forward Contract: An agreement with a financial institution to buy or sell a currency at a set exchange rate at a specific date in the future. The forward rate is equivalent to the spot rate plus a premium or discount equal to the net present value of the interest rate differential between the two currencies. Cash payment is required when the contract matures.
  • The University does not use Option Contracts for currency hedging at this time.

The objectives of currency hedging at the University are to:

  • Reduce or eliminate volatility in the U.S. Dollar value of University's cash and cash flows, and
  • Support business activities that are denominated in foreign currencies.

Currency hedges may be used to protect the U.S. Dollar (USD) value of both foreign currency denominated receipts and payments. Spot transactions, such as routine foreign currency vendor payments that are currently due, are processed through Disbursements. The Treasurer's Office is responsible for foreign currency when it needs to be held for an extended period, a foreign currency denominated receipt in excess of $25,000 is expected, or when a future transaction denominated in foreign currency needs to be hedged.

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2. Hedging Considerations

Before requesting a currency hedge, one must evaluate the stability of the business transaction associated with the hedge and the potential impact of currency fluctuations on the budget. The department requiring the hedge bears the currency fluctuation risk if a contract is entered into to lock in an exchange rate for a vendor payment, and that payment is cancelled. Thus, the underlying transaction must be committed before requesting a hedge. If future cash flows, or timing of cash flows are uncertain, the risk can be mitigated by hedging a fraction of the exposure or by spreading contract maturities over multiple time periods. The currency hedging department is responsible for gains and losses associated with adjustments made to currency hedges. Departments are advised to include loss offset provisions in contracts priced in foreign currency, to pass through the financial risk associated with adjustments or cancellations.

Accounting treatment for the currency hedge should also be taken into consideration. The U.S. Dollar value of the currency held in a spot contract is subject to revaluation before the payment is completed. Individual departments' income statements will reflect the change in value of foreign currency held at fiscal year end and, the University will revalue its overall exposure at each month end.

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3. Setting the Maturity Date of a Currency Hedge

If foreign currency is needed on a specific date, the currency hedge is set to mature on this exact date and instructions can be provided in advance to the financial institution to deliver the foreign currency payment to the vendor on the maturity date. If the payment date is not defined, such as a payment date linked to a milestone, the currency hedge maturity is set on the earliest possible date that the funds will be needed. In that instance, foreign currency is held in a multi-currency account after the hedge matures until the vendor payment is completed. The Treasurer's Office must receive instructions to transfer payment at least five business days before payment is due. Departments requesting a spot currency purchase are required to fund the transaction when the purchase is completed.

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4. Approval Process

The Treasurer's Office can provide market quotes, modeling, and help clarify the hedging process. A request to enter into a currency hedge must be submitted to the Treasurer's Office and executed by a party with the appropriate spending authority. The currency hedge request form includes:

  • Amount of foreign currency to be hedged
  • Currency to be hedged
  • Direction of the hedge (sending or receiving currency)
  • Date that the foreign currency is needed
  • Business purpose of the currency hedge
  • Parties in the underlying business transaction (department and external party)
  • Departmental contact making request
  • PTA to which the currency hedge should be booked

Copies of executed contracts for the related business transaction, if applicable, and proof of spending authority or a delegation of authority for the requester should be included with the request. Foreign currency hedging requests are approved after a review of the related business transaction and receipt of all completed documentation. The Office of the Treasurer should be consulted for proposed hedges related to government-sponsored research as complex rules apply. Contact the Treasurer's Office at fx@lists.stanford.edu or visit the Office of the Treasurer's website for more information. 

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5. Responsibilities of Departments and Treasurer's Office

a. Any material changes to the underlying business activity being hedged should be reported to the Treasurer's Office promptly.

b. Requests to modify or cancel a hedge should be submitted in writing to the Treasurer's Office as soon as the change in the related business transaction is confirmed. The financial impact (loss or gain) of modifying or canceling a currency hedge will be the responsibility of the department requesting the hedge.

c. All requests to create or change currency hedges are subject to approval from the Office of the Vice President for Business Affairs & Chief Financial Officer.

d. Departments are responsible for tracking their hedges, maturity dates and foreign currency transfers.

e. The Treasurer's Office:

  • Is responsible for initiating and modifying currency hedges, tracking and revaluing hedges at the consolidated level in compliance with accounting rules.
  • Will facilitate funds transfers related to currency hedges and their related accounting.

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