Document background
The Intercompany Employee Transfer Agreement is essential for organizations operating multiple entities within Canada or involved in international operations with a Canadian component. This document is typically used when an employee needs to be temporarily transferred between affiliated companies while maintaining their primary employment relationship. It becomes necessary when companies need to share expertise, fulfill project requirements, or develop talent across their corporate structure. The agreement ensures compliance with Canadian federal and provincial employment laws, tax regulations, and immigration requirements while providing clarity on the terms of the transfer, including duration, compensation, benefits, and responsibilities of all parties. It's particularly relevant for organizations with subsidiary operations, joint ventures, or affiliated entities where employee mobility is required for business operations.
