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Intercompany Assignment Agreement Template for England and Wales

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Key Requirements PROMPT example:

Intercompany Assignment Agreement

"I need an Intercompany Assignment Agreement for transferring a senior software engineer from our London office to our Singapore subsidiary for 18 months starting March 2025, with specific provisions for intellectual property protection and family relocation support."

Document background
The Intercompany Assignment Agreement is essential when organizations need to temporarily transfer employees between affiliated companies while maintaining the original employment relationship. This document, governed by English and Welsh law, sets out crucial terms including duration, role specifications, reporting lines, compensation structures, and benefits arrangements. It addresses key considerations such as tax implications, immigration requirements (where applicable), and the respective obligations of the Home Company, Host Company, and the assigned employee. The agreement is particularly valuable for multinational organizations and groups of companies seeking to share expertise, facilitate knowledge transfer, or support specific projects across their corporate structure.
Suggested Sections

1. Parties: Identifies the companies involved in the assignment (Home Company, Host Company, and Employee)

2. Background: Sets out the context of the assignment and the relationship between the parties

3. Definitions: Defines key terms used throughout the agreement

4. Assignment Terms: Details of the assignment duration, location, and role

5. Employment Status: Clarifies continued employment relationship with Home Company

6. Compensation and Benefits: Details of salary, benefits, and which company is responsible for what

7. Duties and Obligations: Responsibilities of each party during the assignment

8. Termination: Conditions and process for ending the assignment

9. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Tax Equalization: Details of tax arrangements between parties - used for international assignments or where tax implications are complex

2. Relocation Provisions: Details of relocation support and expenses - used when assignment requires physical relocation

3. Immigration Support: Responsibilities for visa/work permit arrangements - used for international assignments

4. Family Support: Provisions for family members - used when assignment includes family relocation

5. Emergency Procedures: Protocols for emergencies or early termination - used for high-risk locations or long-term assignments

Suggested Schedules

1. Assignment Details Schedule: Detailed description of role, responsibilities, and reporting lines

2. Compensation Schedule: Detailed breakdown of salary, benefits, allowances, and payment arrangements

3. Benefits Schedule: Details of all benefits provided during the assignment

4. Tax Schedule: Detailed tax arrangements and responsibilities

5. Company Policies: Relevant policies from both Home and Host companies

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Core UK employment legislation that sets out fundamental employment rights including terms and conditions, dismissal procedures, and employee protections

TUPE Regulations 2006: Regulations protecting employees' rights when business ownership changes or during service provision changes

Working Time Regulations 1998: Legislation governing working hours, rest periods, and annual leave entitlements

Equality Act 2010: Comprehensive anti-discrimination legislation protecting employees from unfair treatment based on protected characteristics

Income Tax (Earnings and Pensions) Act 2003: Primary legislation governing taxation of employment income and pension contributions

Social Security Contributions and Benefits Act 1992: Legislation covering national insurance contributions and social security benefits

Immigration, Asylum and Nationality Act 2006: Key immigration legislation affecting right to work and employment of foreign nationals

UK General Data Protection Regulation: Post-Brexit data protection legislation governing the processing of personal data

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of contracts

Copyright, Designs and Patents Act 1988: Primary legislation protecting intellectual property rights in employment context

Competition Act 1998: Legislation preventing anti-competitive practices that might arise from employee assignments

Financial Services and Markets Act 2000: Regulatory framework for financial services, relevant if assignment involves regulated activities

Health and Safety at Work Act 1974: Primary legislation ensuring workplace safety and health protection for assigned employees

Trade Marks Act 1994: Legislation protecting company trademarks and relevant for intellectual property provisions in assignments

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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