This article is based on insights shared during a recent webinar organized in partnership with the Franco-British Chamber, where experts from Majorelle Conseil and Majorelle Avocats explored the challenges and opportunities of immigration in intra-group mobility. The goal: to provide companies with a practical roadmap for managing employee transfers across the Channel.
What is intra-group mobility?
Intra-group mobility refers to the temporary or permanent transfer of an employee from one entity of a multinational group to another entity of the same group located abroad. For example, a French parent company may send a manager to its UK subsidiary to oversee a project, or a British engineer may be seconded to France to provide technical expertise.
This differs from subcontracting or outsourcing, where the employee is sent to a client company outside the corporate group. Intra-group moves are most often used for:
- Leading international projects or market launches
- Transferring rare or strategic technical expertise
- Supporting talent development programs across regions
- Managing corporate restructuring, mergers, or acquisitions
The employees involved are frequently managers, technical experts, or executives tasked with ensuring knowledge transfer and cross-border coordination.
Secondment or localization? Two approaches to mobility
When organizing international employee mobility from the UK to France (or vice versa), companies generally choose between two models: secondment or localization.
Option 1: Secondment
A secondment keeps the original employment contract in force. The employee remains employed by the home company, often with an addendum to cover specifics such as salary adjustments, benefits, and repatriation rights.
Key features:
- Temporary transfer (often up to two years, with some limits)
- Continued link with the home employer
- Social security coverage may remain in the home country under certain conditions
- French labor law requires compliance with a “core set” of rules (working time, pay equality, safety, anti-discrimination, etc.) from the first day of posting
Advantages:
- Simpler to implement for short- to medium-term assignments
- Lower risk of creating co-employment in the host country
- Employee retains home-country benefits and protections
Option 2: Localization
Localization involves terminating or suspending the original employment contract and signing a new, local contract with the host company.
Key features:
- Employee becomes fully subject to host-country labor law (in France, the Labor Code and collective agreements)
- Full social security affiliation with the host system (URSSAF in France)
- Generally used for long-term or indefinite assignments
- Employee integrates fully with local staff, enjoying the same rights and obligations
While localization may provide clarity and stability for longer stays, it also comes with increased costs and administrative obligations for the employer.
Immigration in intra-group mobility
Since Brexit, British employees no longer benefit from EU freedom of movement. Immigration procedures are therefore central to any UK–France transfer strategy.
Several key points to consider:
- Short-term assignments (under 90 days): Certain business activities, such as audits or IT expertise, can be carried out without a work permit if they qualify under French labor law exemptions.
- Intra-Corporate Transfer (ICT) visa/residence permit: Available for managers and experts who have been employed by the group for at least six months. This permit allows work in France for up to three years.
- Work permits for local hires: If an employee is localized, a standard work permit and residence card are required.
- Compliance risks: Failure to obtain the correct permits can lead to fines, suspension of activities, reputational damage, or even criminal liability for illegal employment.
Companies must also remain attentive to changes in immigration law, such as the French immigration bill enacted in 2024, which introduced tighter controls on foreign workers.
Social security considerations
A critical aspect of international employee mobility is determining where social contributions and taxes must be paid.
- Secondments: Under the EU–UK Trade and Cooperation Agreement, employees can remain under their home-country social security system for up to 24 months, provided conditions are met. A certificate of coverage (A1 form) is required.
- Localization: Employees must join the host-country system, with implications for healthcare, pensions, and unemployment insurance.
This makes it essential for companies to assess costs in advance, including salary equalization policies, allowances, and potential double taxation risks.
Risks of non-compliance
The complexity of immigration in intra-group mobility means that mistakes can be costly. Risks include:
- Legal and criminal liability: for illegal employment or failure to declare postings
- Labor disputes: reclassification of contracts, co-employment claims, or wrongful termination
- Financial penalties: fines of up to €4,000 per employee for failing to file a posting declaration in France
- Reputational harm: negative press or blacklisting by local authorities
Effective mobility management requires not only strong internal HR processes but also coordination with legal, tax, and immigration specialists.
Best practices for managing intra-group mobility
To optimize international assignments while staying compliant, companies should:
- Anticipate legal requirements: Stay informed about labor, immigration, and tax rules in both jurisdictions.
- Choose the right mobility model: Compare the costs and benefits of secondment vs. localization.
- Formalize agreements carefully: Draft detailed addendums or contracts covering salary, benefits, repatriation, and applicable law.
- Monitor deadlines and procedures: Ensure timely immigration filings and declarations.
- Coordinate across functions: HR, legal, finance, and mobility experts must work hand in hand.
Conclusion
As highlighted during the Franco-British Chamber webinar, international employee mobility is no longer a simple matter of moving staff across borders. Between Brexit-related changes, evolving immigration laws, and complex social security rules, companies must carefully structure intra-group mobility strategies to avoid risks and ensure smooth transfers.
For organizations with operations in both the UK and France, success depends on balancing compliance, cost efficiency, and employee experience. By mastering the legal and operational framework of immigration in intra-group mobility, multinational groups can continue to leverage talent across borders and strengthen their global competitiveness.