The Intercompany Assignment Agreement is essential for organizations operating multiple entities or having international operations where employees need to be temporarily assigned between related companies. This document is particularly relevant in Hong Kong, a major global business hub where cross-company assignments are common. It serves as a crucial legal framework that defines the assignment terms while ensuring compliance with Hong Kong's employment, immigration, and tax laws. The agreement covers essential elements including employment status, compensation structures, benefits continuation, tax equalization, visa requirements, and repatriation terms. It's designed to protect both the companies and the employee by clearly defining responsibilities, maintaining employment continuity, and addressing potential challenges that may arise during the assignment period.
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1. Parties: Identifies the home company, host company, and the employee being assigned
2. Background: Explains the context of the assignment and the existing employment relationship
3. Definitions: Defines key terms used throughout the agreement
4. Term of Assignment: Specifies the duration of the assignment, including start and end dates
5. Role and Duties: Details the position, responsibilities, and reporting relationships during the assignment
6. Employment Status: Clarifies the continued employment relationship with the home company and relationship with host company
7. Compensation and Benefits: Outlines salary, benefits, allowances, and which company is responsible for each
8. Tax and Social Security: Addresses tax equalization, social security contributions, and related obligations
9. Working Hours and Leave: Specifies working hours, holiday entitlement, and leave policies
10. Immigration: Sets out visa/work permit requirements and responsibilities
11. Confidentiality: Protects confidential information of both companies
12. Data Protection: Addresses handling of personal data in compliance with privacy laws
13. Termination: Details circumstances and procedures for early termination
14. Return to Home Company: Specifies terms for repatriation and role upon return
15. Governing Law: Establishes Hong Kong law as governing law
16. Entire Agreement: Standard boilerplate confirming this is the complete agreement
17. Execution: Signature blocks for all parties
1. Mobility Clause: Required if the assignment may involve travel to multiple locations
2. Intellectual Property: Include if employee will be involved in creating IP during assignment
3. Non-Competition: Add if there are specific competitive concerns during or post-assignment
4. Spouse/Partner Support: Include if providing support for relocating family members
5. Emergency Procedures: Required for assignments to high-risk locations
6. Split Payroll Arrangements: Include if salary will be paid partly by each company
7. Performance Management: Add if specific performance review procedures are needed between companies
8. Training Requirements: Include if specific training is required in host location
1. Schedule 1 - Assignment Details: Detailed terms of assignment including duration, location, and role
2. Schedule 2 - Compensation and Benefits Package: Detailed breakdown of salary, allowances, and benefits
3. Schedule 3 - Tax Equalization Policy: Details of tax equalization calculations and procedures
4. Schedule 4 - Relocation Package: Details of relocation support and allowances
5. Schedule 5 - Company Policies: Key policies of both companies applicable during assignment
6. Appendix A - Required Documentation: List of required immigration and employment documents
7. Appendix B - Emergency Contacts: List of key contacts in both home and host locations
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Professional Services
Retail
Telecommunications
Energy
Healthcare
Construction
Mining
Education
Hospitality
Logistics
Pharmaceuticals
Consumer Goods
Relevant Teams
Human Resources
Legal
Global Mobility
Tax
Finance
Compliance
Immigration
Employee Relations
Compensation & Benefits
Talent Management
Relevant Roles
HR Director
Global Mobility Manager
Legal Counsel
HR Business Partner
Talent Management Director
Compensation & Benefits Manager
International Assignment Specialist
Employment Law Attorney
Chief Human Resources Officer
Regional HR Manager
Immigration Specialist
Tax Manager
Recruitment Manager
Employee Relations Manager
Operations Director
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