Is your employer transferring you to Canada? Understand your contract options is key!

Great news! Your employer is offering to transfer you to Canada. But on what terms? Will it be a short-term assignment, a secondment, an expatriation contract or a local contract? Let’s break it down.

Short-term Assignment

Your employer is sending you on a short-term assignment, also known as a “mission.” This type of international mobility is short, usually lasting from a few days to a few weeks, and rarely longer than three months. In most cases, your existing employment contract remains unchanged, although a letter of assignment may be signed to outline the terms and conditions of your mission.

Secondment

A secondment or “detachment” refers to an international transfer lasting from several months (which is common) to several years (which is rare). As a secondment is considered temporary, your original employment contract remains in force, usually supplemented by a secondment agreement. Secondments have specific duration and renewal restrictions. To understand what applies to your situation, search for “international social security agreements between Canada and other countries.”

Expatriation

In human resources vocabulary, an “expatriation contract” is a long-term international assignment, usually for three years with an option to renew. You may be offered an expatriation contract directly, or it may follow a short-term assignment or secondment.

Under this arrangement, your original employment contract is suspended and replaced by an expatriation contract. This document outlines the benefits available to you and your family, such as housing, schooling, travel expenses, pension plans and healthcare.

A key feature of an expatriation contract is the “repatriation clause.” This clause guarantees your right to return to your original company, either during or after your assignment. It ensures that you will have a position at the same level and salary, or possibly higher. However, it does not guarantee that you will return to exactly the same role or that you will be promoted on your return—an important distinction!

For many years, expatriation contracts were highly sought after. However, they have become less common as companies now see them as costly and complex.

Local Contract

Today, most companies prefer to offer international transfers under local contracts, sometimes with financial assistance to ease the move. How does it work? You leave your existing position with company X in your home country and sign a new local contract with company Y, a subsidiary of the same group but based in Canada. This is known as an “intra-group transfer.”

Advantages of an internal group transfer

• Easier to negotiate: Your employer is more likely to agree to this type of transfer because it is cost-effective and often more in line with company policy.

• No job search required: You move directly into a new role/or your current role within the same group, eliminating the need to search for a job in Canada.

• Eased Immigration Process: Depending on the circumstances, intra-group transfers may qualify for Labour Market Impact Assessment (LMIA) exemptions. Check Canada’s LMIA exemption codes for details.

• Seniority Retention & Contract Benefits: You usually don’t have to complete a probationary period and your seniority may be acknowledged. In some cases, you may also be able to renegotiate your salary and vacation time.

Disadvantages of a Local Contract

• No guaranteed job security on return: Unlike an expatriation contract, a local contract does not guarantee you a job if you decide to return to your home country. You’ll have to manage your own career transition.

• Different benefits: Your previous employment benefits will no longer apply. Instead, you will be covered by local Canadian employment standards, including healthcare, retirement plans and vacation policies. While you won’t receive fewer benefits than your Canadian colleagues, you may not receive any additional perks.

As a former HR professional (10 years + experience), I’ve outlined the main types of international mobility contracts available to you if your employer offers you a transfer to Canada. But you may need help negotiating the terms of your contract, if so, book a coaching session with me!