The Intercompany Assignment Agreement is essential for organizations operating multiple entities within Canada or internationally that need to temporarily transfer employees between related companies. This document is particularly crucial in today's business environment where workforce mobility and knowledge sharing between affiliated entities are common practices. The agreement ensures compliance with Canadian employment standards, tax laws, and immigration requirements while clearly defining the rights and obligations of all parties involved. It covers critical aspects such as employment continuity, compensation structures, benefit arrangements, and reporting relationships, protecting both the companies' interests and the employee's rights. This agreement is typically used for assignments lasting from several months to a few years and is structured to accommodate both domestic Canadian assignments and international secondments involving Canadian entities.
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1. Parties: Identification of the home company, host company, and the employee
2. Background: Context of the assignment and relationship between the parties
3. Definitions: Key terms used throughout the agreement
4. Term of Assignment: Duration of the assignment, including start and end dates
5. Employment Status: Confirmation of continued employment with home company and relationship with host company
6. Duties and Responsibilities: Employee's role and responsibilities during the assignment
7. Compensation and Benefits: Salary, benefits, allowances, and payment arrangements
8. Tax and Social Security: Tax equalization policies and social security arrangements
9. Immigration and Work Permits: Responsibilities for obtaining necessary permits and visas
10. Confidentiality: Protection of confidential information of both companies
11. Intellectual Property: Ownership and protection of IP created during the assignment
12. Termination: Conditions and process for early termination
13. Repatriation: Terms for return to home company
14. Governing Law: Applicable law and jurisdiction
15. General Provisions: Standard boilerplate clauses
1. Housing and Relocation: Terms regarding accommodation and relocation support, used when physical relocation is required
2. Family Support: Provisions for family members, used when family is relocating with employee
3. Emergency Situations: Procedures for handling emergencies or evacuations, used for assignments to high-risk locations
4. Training and Development: Specific provisions for training or development programs, used when assignment includes formal development components
5. Non-Competition: Restrictions on competitive activities, used when employee has access to sensitive business information
6. Currency and Exchange Rates: Provisions for handling currency fluctuations, used for international assignments
7. Performance Management: Details of performance evaluation process, used when dual reporting structures exist
8. Medical Coverage: Special health insurance provisions, used for assignments to countries with different healthcare systems
1. Schedule A - Compensation and Benefits Details: Detailed breakdown of salary, allowances, and benefits
2. Schedule B - Assignment Location Details: Specific information about the host location and workplace
3. Schedule C - Tax Equalization Policy: Detailed tax treatment and calculations
4. Schedule D - Relocation Policy: Detailed relocation benefits and procedures
5. Schedule E - Insurance Coverage: Details of insurance policies and coverage
6. Appendix 1 - Required Notices and Filings: List of regulatory notices and filings required for the assignment
7. Appendix 2 - Emergency Contacts: List of emergency contacts in both home and host locations
8. Appendix 3 - Applicable Policies: List of company policies applicable during the assignment
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Energy and Resources
Professional Services
Telecommunications
Pharmaceutical
Mining
Construction
Retail and Consumer Goods
Transportation and Logistics
Healthcare
Media and Entertainment
Relevant Teams
Human Resources
Legal
Global Mobility
Talent Management
Finance
Tax
Compliance
Corporate Services
Employee Relations
Payroll
International Operations
Risk Management
Relevant Roles
HR Director
Legal Counsel
Global Mobility Manager
Human Resources Manager
Talent Development Manager
Corporate Lawyer
Employment Lawyer
Project Manager
Technical Specialist
Senior Engineer
Department Head
Regional Manager
Research Scientist
Finance Director
Operations Manager
Executive Officer
Tax Manager
Compliance Officer
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