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Intercompany Assignment Agreement for the United States

Intercompany Assignment Agreement Template for United States

An Intercompany Assignment Agreement is a legal document used in the United States to formalize the temporary transfer of an employee between related companies or subsidiaries. This agreement outlines the terms and conditions of the assignment, including duration, compensation, benefits, tax implications, and the respective responsibilities of both the home and host companies. It ensures compliance with U.S. federal and state employment laws while maintaining clear employment relationships and protecting both the companies' and employee's interests.

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Intercompany Assignment Agreement

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What is a Intercompany Assignment Agreement?

The Intercompany Assignment Agreement is essential when companies need to temporarily transfer employees between related entities while maintaining compliance with U.S. regulations. This document becomes necessary when organizations require specialized expertise, want to facilitate knowledge transfer, or need to staff international projects. The agreement typically covers employment status, compensation structures, tax considerations, benefits continuation, and assignment duration. It's particularly important in ensuring clear delineation of responsibilities between home and host companies while protecting the employee's rights and benefits during the assignment period.

What sections should be included in a Intercompany Assignment Agreement?

1. Parties: Identification of the assignor and assignee companies

2. Background/Recitals: Context of the assignment and relationship between the companies

3. Definitions: Key terms used throughout the agreement

4. Assignment Terms: Duration, role, and location of assignment

5. Employment Status: Relationship with home and host company during assignment

6. Compensation and Benefits: Salary, benefits, and payment arrangements

7. Tax and Social Security: Tax obligations and social security arrangements

8. Termination: Conditions for ending the assignment

9. Governing Law: Applicable jurisdiction and dispute resolution

What sections are optional to include in a Intercompany Assignment Agreement?

1. Immigration Requirements: Visa and work permit details for international assignments

2. Relocation Assistance: Moving and settlement support provisions when physical relocation is required

3. Intellectual Property: IP rights and assignment provisions when employee will be creating IP

4. Non-Competition: Restrictions during and after assignment for senior roles or sensitive positions

5. Data Protection: Privacy and data handling provisions when personal data processing is involved

What schedules should be included in a Intercompany Assignment Agreement?

1. Schedule A - Position Description: Detailed role and responsibilities

2. Schedule B - Compensation Package: Detailed breakdown of salary and benefits

3. Schedule C - Assignment Location Details: Specific information about work location

4. Schedule D - Tax Equalization Policy: Details of tax treatment and calculations

5. Schedule E - Relocation Policy: Details of relocation benefits and support

6. Schedule F - Applicable Policies: Key company policies applying during assignment

Authors

Alex Denne

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

Jurisdiction

United States

Publisher

Ƶ

Document Type

Transfer Agreement

Cost

Free to use
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Industries

Employment Law: Includes Fair Labor Standards Act (FLSA), state-specific employment laws, Equal Employment Opportunity laws, Americans with Disabilities Act (ADA), and immigration laws for international assignments

Tax Law: Covers Internal Revenue Code, state tax regulations, Social Security implications, tax equalization considerations, and transfer pricing regulations

Immigration Law: Encompasses visa requirements, work permit regulations, and Form I-9 compliance for international assignments

Intellectual Property Law: Addresses patent laws, copyright laws, trade secret protection, and assignment of inventions

Corporate Law: Includes state corporate laws, securities regulations, and fiduciary duties

Benefits and Compensation: Covers Employee Retirement Income Security Act (ERISA), healthcare continuation (COBRA), and state benefits laws

Privacy Laws: Encompasses data protection requirements, state privacy laws, and cross-border data transfer regulations

Contract Law: Covers state contract laws, Uniform Commercial Code (as applicable), and Statute of Frauds

International Law: Addresses foreign employment laws, international tax treaties, and cross-border regulations when applicable

Industry-Specific Regulations: Includes sector-specific compliance requirements and professional licensing requirements

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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