European Union: Efforts to Standardize Rules for Intra-Corporate Transfers

In a July 2010 proposal, the European Commission proposed a directive that would create a uniform standard for all 27 member states concerning international intra-corporate transfers (ICTs) of highly skilled employees. The proposal permits managers and specialists to remain in a member state for up to three years (trainees for up to one year), and to bring their family along. Many businesses, currently confronted with different applicable standards among member states, support the proposal, which many believe would increase competitiveness by allowing companies to bring their best and brightest overseas—albeit temporarily—to develop, strengthen and expand EU operations. Moreover, because ICT costs, including relocation, transportation and insurance, can be burdensome, uniform rules permitting longer stays would potentially offset front-end expenditures.

Support, however, is lacking among union representatives, according to EurActiv.com. One trade union official expressed concern that ICTs will permit companies to “flood labor markets with cheap labor that undermine local conditions.”

European Parliament and member states are expected to discuss the proposed ICT directive during the first half of 2011.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.