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Intercompany Assignment Agreement

Intercompany Assignment Agreement Template for Germany

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Key Requirements PROMPT example:

Intercompany Assignment Agreement

"I need an Intercompany Assignment Agreement under German law for assigning a senior software engineer from our Munich headquarters to our subsidiary in Hamburg for a 12-month project starting March 2025, including provisions for intellectual property protection and remote working arrangements."

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Document background
The Intercompany Assignment Agreement is essential for multinational organizations operating in Germany who need to temporarily transfer employees between group companies while maintaining compliance with German law. This document is typically used when a company needs to deploy specialized talent, transfer knowledge, or provide technical expertise to another group entity while ensuring proper protection of both the employee's and the companies' interests. The agreement must comply with various German regulations, including the Employee Posting Act (AEntG), Works Constitution Act (BetrVG), and data protection laws. It addresses critical aspects such as employment status, remuneration, social security, tax implications, and mandatory notification requirements to authorities. The document is particularly important given Germany's strict employment laws and the need for clear documentation of assignment terms.
Suggested Sections

1. Parties: Identification of Home Company (assignor) and Host Company (assignee)

2. Background: Context of the assignment and relationship between the companies

3. Definitions: Key terms including Assignment Period, Home Company, Host Company, Services

4. Term and Duration: Length of assignment, notice periods, and early termination provisions

5. Services and Position: Description of role, responsibilities, and reporting lines during assignment

6. Employment Status: Confirmation of continued employment with Home Company and relationship with Host Company

7. Working Time and Leave: Working hours, overtime rules, holiday entitlement and public holidays

8. Remuneration and Costs: Salary continuation, assignment allowances, cost allocation between companies

9. Social Security and Insurance: Maintenance of social security coverage and additional insurance requirements

10. Data Protection: Processing and transfer of employee data between companies

11. Confidentiality: Protection of confidential information of both companies

12. Intellectual Property: Ownership of IP created during assignment

13. Return to Home Company: Process and conditions for return to home company

14. Governing Law and Jurisdiction: Application of German law and jurisdiction

15. Entire Agreement: Integration clause and relationship to employment contract

Optional Sections

1. Immigration Requirements: Include when assignment involves international elements requiring visa/work permits

2. Tax Equalization: Include when assignment includes tax equalization benefits

3. Housing and Relocation: Include when assignment includes relocation or housing benefits

4. Family Support: Include when assignment includes family-related benefits or support

5. Training Requirements: Include when specific training is required in host location

6. Non-Competition: Include when additional non-compete obligations are needed for host company

7. Works Council Rights: Include detailed section when works council has specific rights or conditions

8. Emergency Procedures: Include for assignments to high-risk locations

Suggested Schedules

1. Schedule 1 - Assignment Details: Specific details of assignment including duration, location, position

2. Schedule 2 - Remuneration and Benefits: Detailed breakdown of salary, allowances, and benefits

3. Schedule 3 - Cost Allocation: Breakdown of cost sharing between Home and Host companies

4. Schedule 4 - Applicable Policies: List of Home and Host company policies applicable during assignment

5. Appendix A - Data Processing Agreement: Detailed provisions for GDPR compliance

6. Appendix B - Works Council Agreement: Copy of relevant works council agreement if applicable

7. Appendix C - Job Description: Detailed description of role and responsibilities

8. Appendix D - Required Notifications: Templates for mandatory notifications to German authorities

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Assigned Employee
Assignment
Assignment Period
Base Salary
Confidential Information
Data Protection Laws
Effective Date
Employment Contract
Group
Home Company
Host Company
Host Country
Home Country
Host Company Policies
Home Company Policies
Intellectual Property Rights
Notice Period
Parent Company
Personal Data
Position
Related Companies
Remuneration
Services
Social Security
Termination Date
Works Council
Working Day
Works Agreement
Assignment Benefits
Assignment Location
Applicable Law
Competent Authority
Cost Allocation
Employee Representatives
Group Company
Line Manager
Posting Notification
Reporting Line
Required Notifications
Tax Year
Clauses
Interpretation
Term and Duration
Assignment Terms
Employment Status
Duties and Responsibilities
Working Time
Remuneration
Benefits
Expenses
Tax
Social Security
Reporting Lines
Performance Management
Leave and Holidays
Sickness and Incapacity
Health and Safety
Training
Confidentiality
Data Protection
Intellectual Property
Non-Competition
Works Council Rights
Cost Allocation
Compliance with Policies
Emergency Procedures
Return to Home Company
Termination
Notice Requirements
Governing Law
Dispute Resolution
Severability
Amendment
Entire Agreement
Third Party Rights
Assignment and Transfer
Force Majeure
Notices
Counterparts
Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Pharmaceutical

Automotive

Chemical

Energy

Telecommunications

Consumer Goods

Industrial

Logistics

Construction

Media and Entertainment

Healthcare

Relevant Teams

Human Resources

Legal

Global Mobility

Finance

Tax

Compliance

Employee Relations

Compensation & Benefits

International Assignments

Corporate Services

Relevant Roles

HR Director

Legal Counsel

HR Business Partner

Global Mobility Manager

Employment Lawyer

Compensation & Benefits Manager

HR Operations Manager

Talent Management Director

International Assignment Manager

Corporate Counsel

Employee Relations Manager

Compliance Officer

Finance Director

Tax Manager

Industries
German Civil Code (Bürgerliches Gesetzbuch - BGB): Fundamental legislation governing employment relationships and contract law principles in Germany
German Employee Posting Act (Arbeitnehmerentsendegesetz - AEntG): Regulates the assignment of employees including minimum working conditions and reporting obligations
Works Constitution Act (Betriebsverfassungsgesetz - BetrVG): Governs works council rights and co-determination requirements in employee assignment matters
Social Security Code (Sozialgesetzbuch - SGB): Regulates social security implications during assignments, including continuation of insurance coverage
Federal Data Protection Act (Bundesdatenschutzgesetz - BDSG): Governs the handling of employee personal data during assignments and between group companies
Income Tax Act (Einkommensteuergesetz - EStG): Covers tax implications of employee assignments and salary continuation arrangements
Stock Corporation Act (Aktiengesetz - AktG): Relevant for intercompany relationships and governance in corporate group structures
Workplace Ordinance (Arbeitsstättenverordnung - ArbStättV): Specifies requirements for workplace conditions and safety standards that must be maintained during assignments
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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