EU: More Member States Adopt Directive on Intracompany Transfers

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By Andrea Barbara Schuessler

Austria is likely to implement the European Union's Intra-Corporate Transfer Directive (2014/66/EU) Oct. 1, Sebastian Klaus, lawyer and manager for employment and global immigration services with KPMG's Frankfurt office, told Bloomberg BNA Sept. 15.

The ICT Directive outlines the circumstances under which foreign nationals moving into the EU or the European Economic Area in an intracompany transfer can qualify for work and residence permits. The directive is intended to ease the movement of highly qualified non-EU/EEA nationals into and within the European Union.

ICT work and residence permits are limited to three years for managers and specialists and one year for trainees. Managers and specialists must have worked for their employers for at least nine months, trainees for at least six months to qualify for ICT permits. Holders of ICT permits can apply for a Mobile ICT Permit allowing them to work in an EU/EEA country other than the one into which they were initially transferred.

Implementation

“As the Directive limits the duration of a secondment to three years, companies will need to review their international assignment policies and in particular consider the possible social security implications for assignments to EU countries where there is a social security agreement with the home country,” consultancy EY said in a December 2016 alert.

“Employers should ensure that assignments of non-EU nationals to the Directive-adopting countries are planned in line with the maximum duration of three years,” EY added. “Where such assignments are expected to exceed three years, it will be necessary to consider transferring the assignee on a local contract with the local country entity.”

“A separate assessment should be undertaken to consider the impact of these provisions on the social security position of the assignees,” according to EY. “Finally, we recommend international organizations to review their current assignment policies, processes and procedures . . . to ensure that these align with the new requirements.”

As of April 2017, 11 out of 25 participating EU member countries have implemented the ICT Directive, according to KPMG. The U.K., Denmark, and Ireland have decided not to implement the directive.

To contact the reporter on this story: Andrea Barbara Schuessler in Berlin at correspondents@bna.com

To contact the editor responsible for this story: Rick Vollmar at rvollmar@bna.com

For More Information

The full text of EU Directive 2014/66/EU (on the conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer) is available in English here.

For more information on European Union HR law and regulation, see the European Union primer.

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