Overseas intra-company transfer - years of service

HardCoreProgrammer

For forum readers who have requested transfer / been transferred abroad and continued working for the same company, whether your years of service has been retained.

I am asking because my employer says that legally, I am leaving the company (UK) and joining another one (legal entity in another country), so I will be treated as having resigned and joining a new company. It would be much appreciated if someone is in a position to clarify.

getmore4less

If that's the way they want to work it you are stuffed on service.

Some companies allow contractual service service to transfer and get any benefits that acquires and give continuity on return, optionally counting the overseas bit.

But for statutory payments that may not count.

Ozzuk

Should be something you can negotiate, depends how much they want you. Don't forget you'll also need to start a new pension scheme (or at least I was warned I'd have to). In my case (UK>Canada) I was allowed to keep years of service. I didn't move in the end.

Marcon

HardCoreProgrammer wrote: »

For forum readers who have requested transfer / been transferred abroad and continued working for the same company, whether your years of service has been retained.

I am asking because my employer says that legally, I am leaving the company (UK) and joining another one (legal entity in another country), so I will be treated as having resigned and joining a new company. It would be much appreciated if someone is in a position to clarify.

The key is 'working for the same company'. You aren't. There is nothing in UK law to stop you being treated as if your employment had been continuous, but it depends on (a) what you are able to agree with your employer and (b) any local restrictions in the country to which you are moving.

sangie595

Which company will pay you? And manage your work?

agrinnall

I think the key point is whether you have requested the transfer. If so then you are at the mercy of whatever the two companies' rules are and your ability to negotiate. You would be in a much stronger position if the transfer had been at their request.

HardCoreProgrammer

sangie595, I will be paid in the local currency but will not be managed locally. I work in an international team.

Ozzuk, where I will be moving to, all employees are required by law to pay into a local pension scheme. I am planning to leave my UK pension savings alone and not transfer it (QROPS).

From the replies, the consensus seems to be: there is nothing which prevents years of service from being retained, so I will try to negotiate with the company. Thank you everyone for your replies.

silverwhistle

No, I wouldn't transfer either as it would get very complicated and in the case of certain countries I don't particularly trust the set up. Denmark, for example, you'd probably be OK, but Italy's system I'd avoid like the plague.


Fortunately when I moved to Italy for a number of years I was already in receipt of a UK pension but I was still paying, without pension contribution, their national insurance rate of 17% on my part-time teaching earnings. After that you are enrolled in different professional funds and it's all a bit of a casino..

So where you are moving to may also have a bearing on your decision and I'd be inclined to get professional advice.

LilElvis

From personal experience, both working overseas myself and arranging inter-group transfers worldwide for my employer, I would say that retaining continuous service would rank very low in negotiations/ determining the viability of the move.

Some important points to clarify:
Net pay you will receive - from further research as to local costs you can then work out what standard of living you can expect.
Will your employer pay for visas and relocation costs for your spouse
Would your spouse be entitled to work
Will your employer supply or assist you in securing accommodation
What health care system is available to you - does your employer pay for private health cover for you and any dependents if local cover isn't adequate
Is state schooling adequate for any children - if not, then does the employer assist with international school costs
What assistance will your employer give re opening bank accounts, purchasing a car.
What relocation costs will they cover
What costs will they cover in terms of you relocating back to the UK if your employment is terminated

That's just a few points off the top of my head!

If possible talk to some employees who have transferred and ask them what they wish they had known and what areas came as a logistical/ financial bombshell.