Professional in Human Resources (PHR) Practice Exam

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Who are third-country nationals (TCNs) in the context of employment?

Employees from the same country as the headquarters
Citizens of countries where they do not work
Local employees from the country of employment
Employees from multinational corporations

The correct answer is: Citizens of countries where they do not work

Third-country nationals (TCNs) refer specifically to individuals who are citizens of countries other than the country where they are currently employed and the country of the employer's headquarters. This is the defining characteristic of TCNs, distinguishing them from local employees, who are citizens of the country in which they work, and from employees who come from the company's headquarters country. In the context of employment with multinational companies, TCNs often play crucial roles, especially in international assignments, where they may be hired for their specialized skills or to facilitate cross-border operations. Understanding the status of TCNs is important for managing global workforce challenges, such as compliance with immigration laws and tax implications in different jurisdictions.