Poster for download - Contractual structures for international employee secondments
International employee secondments require multidisciplinary competence. Employment, tax, social security and immigration law requirements have to be taken into account during the planning phase. This usually applies for two jurisdictions, that of the host country and that of the home country.
An important question that arises in terms of employment law is the question of the "correct" contractual model. The poster available for download provides an overview of the contractual models used on the market in terms of employment law. This does not yet answer the question of which is the "correct" contractual model for employing people abroad. Some thoughts in this regard:
- The selection of the contractual model is an entrepreneurial planning decision. Here, employment law considerations are usually not decisive for the decision. They can tip the scales. The structural drivers are essentially the issues of tax and social security law. At "level zero", it is also to some extent immigration law. This applies when, for example, obtaining a work and residence permit in the host country is only possible if a local employment contract is concluded. However, it remains the case that the focus of planning is on the topics of tax and social security law.
- As so often in life: there are several ways that can lead to the goal. This also applies to the choice of the employment contractual model. Often, different contractual models are possible. Then the choice is an open business decision. If the topics of tax and social security law do not dictate a preference, then one should still take a look at the complexity in processing.
- In the sense of "anecdotal evidence", it can be stated that most international employee secondments worldwide are carried out either in the contractual model of an "assignment" or a "deployment" (please see poster for refence). Within these two contractual models, there is a clear focus on the assignment contractual model. Here, the existing employment contract is modified by an assignment agreement for the duration and purpose of the assignment abroad.
