Intra Group Transfer Agreement Template for the United Arab Emirates

An Intra Group Transfer Agreement is a specialized employment document that governs the transfer of employees between related companies within a corporate group structure. In the UAE, this agreement serves as a critical legal instrument that ensures compliance with local employment laws while facilitating internal employee mobility across affiliated entities.

When do you need this document?

You need an Intra Group Transfer Agreement when restructuring your corporate group, consolidating operations, or optimizing workforce distribution across different entities. This document becomes essential during mergers and acquisitions within your group, when establishing new subsidiaries that require experienced personnel, or when transferring employees between mainland companies and free zone entities. The agreement is also crucial when relocating key personnel to different emirates or transferring employees between holding companies and their subsidiaries to meet operational requirements.

Key legal considerations

The agreement must clearly define the relationship between transferring and receiving entities, ensuring both are legitimate group companies with proper corporate documentation. Employment continuity clauses are critical to preserve existing employment terms, salary structures, and accrued benefits during the transfer process. You must address visa transfer requirements, including coordination with relevant authorities for work permit transfers and residency visa updates. Data protection provisions are essential to comply with UAE Federal Decree Law No. 45 of 2021, particularly regarding the transfer of employee personal information between entities. The agreement should specify liability allocation between entities for employment obligations and establish clear dispute resolution mechanisms.

Legal requirements in United Arab Emirates

Under UAE Federal Decree Law No. 33 of 2021, employee transfers must maintain all existing employment rights and cannot result in deterioration of terms and conditions. The agreement must comply with end-of-service benefit calculations, ensuring proper allocation of responsibility between transferring and receiving entities for accrued benefits. Free zone transfers require coordination with relevant free zone authorities and adherence to specific visa transfer procedures. The Commercial Companies Law (Federal Decree Law No. 32 of 2021) mandates proper corporate authorization for such transfers, requiring board resolutions or authorized signatory approval. Immigration requirements under Federal Decree Law No. 29 of 2021 must be addressed, particularly for expatriate employees requiring visa transfers between entities. The agreement must also ensure compliance with UAE tax obligations and proper notification procedures to relevant government authorities.