UK: Impact of COVID-19 on AGMs: An update
In our briefing COVID-19: What does this mean for AGMs?, we considered a number of issues with which companies with December 31 year-ends have been grappling.
On November 29, 2016 the Dutch Royal Decree (the Decree) which implements the European Intra-Corporate Transfer Directive (2014/66/EU) (the Directive), came into force. The Directive applies to secondments of non-EU citizens satisfying certain conditions whose main place of residence is outside the EU (Expats) to an EU Member State. The Directive simplifies the admission procedure for Expats (and their families), in order to make the EU more attractive to international businesses. To enhance these international secondments to the EU between affiliated entities, a special ‘Intra-Company Transfer’ permit (ICT-permit) has been introduced. The ICT-permit allows the individual to work in the EU for a maximum period of three years.
The new ICT-permit will apply to applicants who meet the following conditions:
The ICT-permit can be granted for a maximum period of three years for managers and specialists. For trainees, the maximum period is one year. At the end of the secondment period, the Expat must relocate to his home country for at least six months in order to be able to re-apply for an ICT-permit in the Netherlands.
The Directive also aims to facilitate mobility of Expats within the EU: ‘Intra-EU mobility’. Distinction is made between ‘short-term mobility’ and ‘long-term mobility’. Short-term mobility means that an Expat can stay and work in a second EU-member state for a maximum period of 90 days in any 180-day period. Depending on the legislation of the second EU-member state, the host-entity may have notify both EU-member states that the Expat intends to work in the second EU-member state.
If the Expat stays in a second host-country for a period of longer than 90-days in any 180-day period, the rules for long-term mobility apply. Depending on the legislation of the second EU-member state, a notification of this period of work may have to be made or a formal application for long-term mobility will need to be submitted.
In the Netherlands, notification should be made at the Employee Insurance Agency (UWV).
The target group of the Directive shows similarities with the Dutch ‘highly skilled migrant scheme’ which applies to highly skilled foreign employees working in the Netherlands. If the Expat meets the requirements of the ICT-permit, he cannot apply for a ‘highly skilled migrant-permit’ and his application must be resubmitted under the ICT-permit scheme. If the parties involved consider that it is more desirable for the employee to obtain a highly skilled migrant-permit, then the Expat will need to enter into an employment contract with the host-entity rather than remaining employed by the foreign company.
This legal update expands on and should be read in conjunction with the basic insolvency principles outlined in Part 2 (Insolvency fact sheet) of this series of legal updates. This update focusses on assisting company directors to understand their obligations under the new temporary relief measures in place during the COVID-19 crisis.