Intercompany Assignment Agreement for India

Intercompany Assignment Agreement Template for India

This document governs the temporary assignment of an employee from one company (home company) to another related company (host company) within India. It establishes the terms and conditions of the assignment, including duration, roles and responsibilities, compensation structure, benefits, tax implications, and reporting relationships. The agreement ensures compliance with Indian employment laws, tax regulations, and social security requirements while protecting the interests of all parties involved. It addresses key aspects such as intellectual property rights, confidentiality obligations, and the continuation of employment benefits during the assignment period.

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What is a Intercompany Assignment Agreement?

The Intercompany Assignment Agreement is essential for organizations operating multiple entities within India that need to temporarily transfer employees between companies while maintaining clear employment relationships and ensuring legal compliance. This document is typically used when an employee needs to be assigned to a different company within the same corporate group for purposes such as project work, knowledge transfer, or strategic initiatives. The agreement addresses crucial aspects required under Indian law, including employment status, compensation structures, tax implications, and social security benefits. It helps organizations manage internal mobility while protecting both corporate and employee interests, ensuring compliance with Indian employment laws, tax regulations, and corporate requirements. The document is particularly important in the context of India's complex regulatory environment, where clear documentation of employment relationships and inter-company arrangements is crucial for legal and tax purposes.

What sections should be included in a Intercompany Assignment Agreement?

1. Parties: Identifies the home company, host company, and the employee being assigned

2. Background: Explains the context of the assignment and the relationship between the companies

3. Definitions: Defines key terms used throughout the agreement

4. Term of Assignment: Specifies the duration of the assignment, including start and end dates

5. Role and Responsibilities: Details the position, duties, and reporting relationships during the assignment

6. Compensation and Benefits: Outlines salary, benefits, allowances, and which entity is responsible for each component

7. Tax and Social Security: Addresses tax equalization, social security contributions, and related obligations

8. Employment Status: Clarifies the continued employment relationship with the home company and relationship with host company

9. Intellectual Property: Covers ownership and assignment of IP created during the assignment

10. Confidentiality: Addresses protection of confidential information of both companies

11. Data Protection: Covers handling of personal data in accordance with applicable laws

12. Termination: Details circumstances and procedures for early termination of the assignment

13. Governing Law: Specifies Indian law as governing law and jurisdiction

14. General Provisions: Includes standard boilerplate clauses like notices, amendments, and entire agreement

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

1. Immigration Support: Required when the assignment involves international movement requiring visas or work permits

2. Relocation Assistance: Include when the assignment requires significant geographic relocation

3. Family Support: Include when family members are also relocating with the employee

4. Post-Assignment Provisions: Include when specific arrangements for post-assignment role or repatriation need to be agreed upfront

5. Performance Management: Include when specific arrangements for performance evaluation between home and host company are needed

6. Training Requirements: Include when specific training or development objectives are part of the assignment

7. Non-Competition: Include when additional non-compete restrictions specific to the host company's business are required

What schedules should be included in a Intercompany Assignment Agreement?

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

2. Schedule 2 - Compensation and Benefits Structure: Detailed breakdown of all compensation components and benefits

3. Schedule 3 - Tax Equalization Policy: Detailed policy on tax treatment and equalization methodology

4. Schedule 4 - Assignment Policy: Company's general policy on assignments applicable to this agreement

5. Schedule 5 - Applicable Home Company Policies: List of home company policies that continue to apply during assignment

6. Appendix A - Required Notices and Declarations: Standard forms and declarations required under Indian law

7. Appendix B - Emergency Contact Information: Emergency contact details and procedures

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Genie AI

Document Type

Transfer Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Financial Services

Professional Services

Healthcare

Pharmaceuticals

Telecommunications

Energy

Retail

Construction

Automotive

Education

Research and Development

Relevant Teams

Human Resources

Legal

Finance

Tax

Global Mobility

Compensation & Benefits

Project Management Office

Operations

Research & Development

Information Technology

Corporate Affairs

Compliance

Relevant Roles

HR Director

Legal Counsel

Tax Manager

Mobility Manager

HR Business Partner

Compensation & Benefits Manager

Project Manager

Technical Lead

Department Head

Senior Engineer

Business Analyst

Finance Manager

Operations Manager

Research Scientist

Product Manager

Development Manager

Industries
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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