THIRD-COUNTRY NATIONAL (TCN) (2024)

UNCLASSIFIED (U)

3 FAM 7270

THIRD-COUNTRY NATIONAL (TCN)

(CT:PER-1000; 06-18-2020)
(Office of Origin: GTM/OE)

3 FAM 7271 POLICY

3 FAM 7271.1 General

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

A third-country national (TCN) is an individual who meetsthe following criteria.

(1) Is neither a citizen of the United States nor ofthe country to which assigned for duty.

(2) If employed, is eligible for return travel to theTCN’s home country or country from which recruited at U.S. Governmentexpense.

(3) Is on a limited appointment for a specific periodof time.

(4) Encumbers a direct-hire, personal serviceagreement (PSA) or personal service contract (PSC) FSN position covered underthe local compensation plan. Such an employee normally is recruited fromoutside the host country and relocated from the point of recruitment to thehost country. The return travel obligation assumed by the U.S. Government mayhave been the obligation of another employer in the area of assignment if theemployee has been in substantially continuous employment which provided for theTCN’s return to home country or country from which recruited.

(5) For USAID, TCNs employed under a PSC are subjectto provisions of AID HB 14 (AIDAR), Appendix J.

3 FAM 7271.2 RepatriationAgreement

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

a. The personnel action (Form SF-50) effectingemployment must indicate that the employee is being hired as a TCN and thatreturn travel will be provided by the U.S. Government unless this obligation isassumed by another employer at the time of the employee’s termination.This personnel action constitutes the Repatriation Agreement and may beaugmented with a completed “Conditions of Employment Agreement” ora contract for personal services abroad, as appropriate. Employing posts areresponsible for complying with local employment requirements.

b. An applicant who is located in the country ofintended assignment and who does not have a repatriation agreement with theapplicant’s most recent employer may not be hired as a TCN. However, theapplicant may be hired under the same terms as an employee who is a citizen ofthe host country.

3 FAM 7271.3 Limited Duration ofEmployment

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

All persons hired as TCNs must be informed of the limitedduration of their employment. As a result, TCN employees should not expectpromotions unless hired at a level which is less than the level of the positionor the position is reclassified upward due to a change in the level of duties.

3 FAM 7271.4 When TCN's AreAppropriate

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

The appointment of a TCN employee is effected only when:

(1) Qualified persons are not available in the hostcountry;

(2) Limitation of time or other conditions prevent thetraining of persons in the host country for the job; or

(3) It is determined that program efficiency andpolicy objectives can be achieved only by using TCNs as a temporary substitutefor available, eligible and qualified U.S. citizens and persons from the hostcountry.

3 FAM 7272 RECRUITMENT

3 FAM 7272.1 Sources

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

Sources of recruitment are:

(1) The nearest foreign area having qualifiedcandidates; and

(2) An international agency or any firm employingthird-country nationals in the host country.

3 FAM 7272.2 Procedures

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

See 3FAH-2 H-300 for implementing procedures.

3 FAM 7273 VISAS, WORK PERMITS, IMPORTPRIVILEGES, TAXES, AND SOCIAL SECURITY

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

The post requesting the employment of a TCN shoulddetermine whether:

(1) The host government requires a visa for the entryof the employee and dependents, if any, and a work permit for the employee;

(2) Import privileges will be granted, where importduties must be paid, and the amounts required, so that the employee may becorrectly informed;

(3) Local tax laws will apply to the employee and, ifso, the extent of the employee’s responsibility;

(4) Guaranty of safe conduct can be assured ifinternational hostilities or internal revolt should endanger theemployee’s safety; and

(5) Specific local requirements would affect shipmentof household and personal effects upon repatriation.

3 FAM 7274 TCN COMPENSATION ANDCLASSIFICATION POLICIES

3 FAM 7274.1 Authority

3 FAM 7274.1-1 Locality BasedCompensation System

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

As required by Section 408(a)(1) of the Foreign ServiceAct of 1980, compensation for TCNs shall be based on prevailing practices forcorresponding types of positions in the locality as determined by the FSNPosition Classification System. Locality for TCN compensation purposes isgenerally the locality of employment or, as otherwise determined under section 3 FAM 7274.3, the locality fromwhich recruited.

3 FAM 7274.1-2 WashingtonApproval of Compensation Plan

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

All new local compensation plans, including those coveringTCNs, and all revisions or amendments in existing plans are subject to approvalby Washington headquarters. Embassies must submit supporting salary data andworksheets of local salary surveys as outlined in 3 FAM 7274.3 and 3 FAM 7520.

3 FAM 7274.2 Classification

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

FSN positions must be classified in accordance with theinstructions set forth in 3FAH-2 H-400, regardless of the nationality of the incumbent. Aposition’s assigned work must be classified before any recruitment or payactions are taken.

3 FAM 7274.3 Determining SalaryRates

(CT:PER-1000; 06-18-2020)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

The salaries of TCNs must be based on prevailing practiceand paid in local currency unless an exception is granted in accordance with 4 FAH-3 H-556.2. The localityused for measuring the practices can vary since TCNs generally are recruitedfrom outside the country in which employed. In order to follow prevailingpractice, TCN salaries must be determined in the manner described below. Eachpost must uniformly apply one of the following paragraphs (1, 2, or 3) of thissection to all TCNs at post.

(1) The employing post must use the salary rate listedon the local compensation plan (see 3FAM 7522) for the appropriate grade level of the TCN’s duties andresponsibilities unless subparagraphs (a) or (b) below applies.

(2) If evidence exists that there is a prevailing TCNpractice in the country where the TCN is to be employed, post must obtainsurvey data on this practice and propose use of this data for review byWashington headquarters in the following circ*mstances.

(a) At the time of a full or salary change survey, theemploying post or persons performing the survey must determine prevailing paypractices for TCNs who occupy types of positions in the host countrycorresponding to those (to be) occupied by TCNs employed by post or positionsequivalent to the key positions listed in 3 FAH-2 H-230. Thisdetermination must be made only among the firms used for regular surveypurposes. The resulting data, if any, must be sent to GTM/OE for analysis and to State’sregional bureau for approval prior to use and must be kept separate from thedata used to establish the balance of the local compensation plan.

(b) In the absence of a full or salary change survey,the employing post must conduct its own survey on TCN practices among the firmsused for regular survey purposes after obtaining guidance from GTM/OE regarding data needed for analysis andapproval of TCN salary rates.

(3) If there is no local prevailing TCN practice anduse of the local salary schedule prevents post from being able to recruit orretain TCNs, then after obtaining approval of Washington headquarters agencies,post may use the salary rate listed on the local compensation plan in thecountry from which the TCN is (to be) recruited, or in the TCN’s homecountry if more appropriate than the country from which recruited, for theappropriate grade level of the TCN’s duties and responsibilities.Subject to paragraph (4) below post must either:

(a) Pay this rate in the local currency of the scheduleused if legal under host country's law and adjust this rate when the scheduleis adjusted in the country from which the TCN is recruited or in the TCN's homecountry whichever is used;

(b) After obtaining approval of Washington headquarters,agencies fix this rate at the time of hire in local currency of the country ofUSG employment at current exchange rates subject to periodic reviews by postand Washington headquarters agencies; or

(c) A combination of (a) and (b), above; and

(4) Any resulting TCN salary rates that differ fromthose of employees on the local compensation plan of the country wherein theTCN is employed must be annotated on that plan.

3 FAM 7274.4 Determining Benefits

3 FAM 7274.4-1 General

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

a. TCN benefits must be based on prevailing practice. Eachpost must uniformly apply the benefit provisions of the local compensation plan(see 3 FAM 7540) to all TCNs withthe provision for exceptions as described below without duplicating benefitsalready received under local compensation plan. Any decisions may depend onlocal laws and whether the host country will provide duty-free entry ofhousehold and personal effects.

b. Benefits for TCNs that differ from those of FSNemployees of the host country must be annotated on the local compensation plan,and delineated in the text of the approved local compensation plan.

3 FAM 7274.4-2 Optional Benefits

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

a. Each post may determine which benefits vary inprevailing practice for TCNs using the procedures in section 7274.4. Ifprevailing practice warrants, separate direct benefits may vary by eachindividual or category of TCN but all such benefits are subject to thefollowing considerations and limitations:

(1) Budget;

(2) Local law;

(3) Benefit levels applicable to U.S. Governmentpersonnel; and

(4) Length of tour of duty (some benefits may not beappropriate for tours of one year or less).

b. If no data exist using the procedure in 3 FAM 7274.4 and a post’scategory of TCN employee or conditions of employment do not match the categoryor conditions in prevailing practice or for local nationals of the hostcountry, Washington headquarters, in exceptional circ*mstances, may authorizean offset in salaries appropriate to the type of benefit.

c. Generally, the automobiles of TCNs will not beshipped at U.S. Government expense. Exceptions to this rule may be approved atthe post. See 14 FAM and 3 FAM7274.4-3) for regulations on travel and transportation of effects.

3 FAM 7274.4-3 MandatoryBenefits

(CT:PER-926; 09-27-2018)
(Uniform State/Agriculture/USAGM/Commerce/USAID)
(Applies to Foreign Service Nationals Only)

These benefits will apply to all TCNs according to theirtours of duty regardless of localities of employment.

(1) Tours of Duty in Excess of One Year—A TCNwhose period of service is one year or more is entitled to the following travelprivileges (in accordance with 14 FAM) on recruitment travel orders.

(a) Travel

(i) Economy class air accommodations for directtravel from the country in which recruited to the country of assignment for TCNand dependents. If economy class is not available, the next least expensiveclass, which is less than first class, may be authorized. Fly America provisionsapply in accordance with 14 FAM. Dependents may travel at U.S. Governmentexpense to reside with the employee only if such travel is approved by theemploying mission in the country where the TCN will be employed.

(ii) Dependents of a TCN, for purposes of travel toand from the country of assignment, include the spouse and those children(including adopted children and stepchildren) who are under the age of 21 andunmarried, or over age 20 and incapable of self-support.

(b) Per Diem: Per diem for actual direct-route airtravel time for the TCN and dependents who reside with the employee, not toexceed that provided by the Standardized Regulations.

(c) Shipping Allowances

(i) These allowances will be determined after posthas decided whether government housing and/or furnishings will be provided.The following limits are provided as maximums. Post may authorize loweramounts in light of local circ*mstances.

(ii) The employee may ship, by air freight, householdand personal effects not in excess of 250 pounds gross weight for the employee,200 pounds for the first authorized dependent, 150 pounds for the second, and100 pounds for each additional authorized dependent.

(iii) A limited shipment of household effects may beauthorized when the post provides basic furnishings. A limited shipment maynot exceed 2500 pounds net weight for a TCN with authorized dependents, or 1500pounds net weight for a TCN without dependents.

(iv) A full shipment of household effects may beauthorized when the post provides no basic furnishings. A full shipment may notexceed 7500 pounds net weight for a TCN with authorized dependents, or 4500pounds net weight for a TCN without dependents.

(2) Tours of Duty for One year or Less - A TCN whoseperiod of service is less than one (1) year is entitled to the following travelprivileges (in accordance with 14 FAM) on recruitment travel orders:

(a) Travel

(i) Economy class accommodations for direct airtravel from the country in which recruited to the country of assignment for TCNonly. If economy class is not available, the next least expensive class whichis less than first class may be authorized. Fly American provisions apply, inaccordance with 14 FAM.

(b) Per Diem: Per diem for actual direct-route airtravel time for the TCN.

(c) Shipping Allowance (Personal Effects): In additionto the free baggage allowance provided by the carrier, transportation ofpersonal effects not in excess of 400 pounds (net weight), 100 pounds (grossweight) of which may be shipped by air and the balance by air or surfacecarrier, whichever is most economical. When local circ*mstances warrant, theTCN may be authorized up to an additional 100 pounds (net weight).

(d) Household Furnishings and Automobiles: Householdfurnishings and automobiles are not shipped at U.S. Government expense.

(3) Repatriation Travel—Upon termination ofemployment, repatriation travel of a TCN and eligible dependents will beprovided to the home country or country from which recruited as determined bythe post. A TCN must depart within 30 days after termination of employment,otherwise the TCN forfeits the repatriation travel benefit.

(4) Repatriation Allowances—The TCN will beauthorized to ship from the host country the same amount of weight the TCN wasauthorized to bring into the country. Each post may authorize travel from thehost country for a TCN and/or authorized dependents, and return travel to thehost country if appropriate, during the period of employment and only in thefollowing cases:

(a) Need for medical care not available in the hostcountry;

(b) Serious effect on physical or mental health ifresidence at post is continued;

(c) Preparation and return of the remains of a TCN orauthorized dependent; and

(d) Emergency evacuation under the provisions of ChapterSTNRG-0600 Standardized Regulations (Government Civilians, Foreign Areas).

3 FAM 7275 THROUGH 7279 UNASSIGNED

UNCLASSIFIED (U)