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The European Intra Corporate Transfer Directive

MEDIA ROOM

January 5, 2017

The recently implemented Directive (2014/66EU) sets out an innovative scheme for intra-EU mobility. This intra-EU mobility scheme signifies a major innovation. This directive crystallises the conditions of entry and residence for third country nationals moving to the EU under an intra-company transfer.

The applicability of this directive is for:

  • An Assignee that is not a national of an EU Member State;
  • The Assignee is in employment with an entity outside the European Union which belongs to an international group of companies;
  • The Assignee is transferred within an international group of companies; and
  • The intra corporate transfer is for a duration of more than 90 days.

This Directive does not permit member states to have their own national intra company transfer work permit scheme.

The Criteria set out for the post are:

  • A post of a manager, specialist or trainee;
  • Managers and specialists must have worked for the international organization for between three and twelve months uninterrupted, immediately preceding their transfer;
  • Trainees, this mandatory period is for three to six months;
  • Evidence of professional qualifications and experience as required by the host entity must be provided;
  • Trainees must hold a master degree; and
  • The salary is at local market level.

This directive will improve the temporary assignment of highly skilled non-EU nationals into the European Union; it will in turn facilitate the mobility of Intra corporate Transferees within the European Union; and ultimately establish a common set of rights for Intra Corporate Transferees when working within the European Union.

The Directive should be implemented into the legislation of EU Member States with effect from the 29th of November 2016, however, some countries will be opting out of this directive, these being the United Kingdom, Denmark and Ireland.

One might argue that Companies will need to review their international assignment policies and in particular consider the possible social security implications for assignments to EU countries.

Conclusion

Once this Directive is in operation, third country nationals with a permit issued in any member state of first residence can enter, stay and work in one or more additional member states with little or no interruption to their assignment.