FAQs: International Transfers on Local Terms
I'm interested in working in another country. What does a transfer on "local terms" mean?
Opportunities offered on 'local terms' basically mean that you would be offered the same terms and conditions that all the local employees in the country / business concerned are subject to. You would cease to be employed by your home country and would transfer to host country employment.
How does a transfer on 'local terms' compare with an international secondment?
With a secondment, you would normally retain your home country contract of employment and undertake an assignment for a defined period (typically 2-3 years), with the expectation that you would then return to a job in your home country.
International transfers, on the other hand, are typically for an undefined period and entail a break in employment with your home country. There would be no obligation on the part of your home country to repatriate you, your family and/or your belongings to your home country.
Will my prior service with HSBC be recognized?
If successful for a position, the new HSBC company will recognize your previous HSBC service for all service-related benefits (excluding pension rights - see below), provided that there is no break in service between leaving your current Group company and joining the new company. This 'continuity of service' will enable you to retain any share scheme benefits and your prior service will be recognised in consideration of any service-related benefits under the host arrangements.
What will happen to my pension?
Membership of your current home country scheme will either be suspended or will possibly cease, depending on the rules of the scheme. It is unlikely that you will be able to transfer any funds or past service into a pension scheme in the new country. In most cases, it is not possible to rejoin a closed pension plan if you decide to eventually return to your home country. Professional advice should be obtained before making a decision about transferring to another country.
How do I obtain a Work Permit?
Please make yourself aware of the requirements in advance of any application. If successful, the HSBC company concerned will apply for a work permit on your behalf.
What will happen to my bonus in my year of transfer?
If you transfer part way through a bonus period, any bonus awarded to you for work undertaken in the home location prior to your transfer will be paid pro rata, in line with normal practice in the home location. Payments will be made in line with the new host country timetable.
Any bonus awarded for work undertaken from the date of transfer will be paid in accordance with the normal practice in the host location.
What will happen to my Severance pay?
If you are made redundant after transferring to a new HSBC company, any severance pay will be calculated in accordance with the local policy and will take into account prior HSBC service.
What happens if I want to come back?
As your transfer to another country will not have a 'right of return' (unlike an international secondment), your former home country will be under no obligation to re-employ you if you decide to return. If you consider that, at some future date, you might wish to return, it would be advisable to make efforts to maintain your network and relationships with your home country.
How can I find out more about a particular country?
To learn more about living and working abroad, including work permit information, please go to the CultureWizard site at http://culturewizard.com. Use Login ID: HSBC and Password: Assignee.
HSBC colleagues in the country concerned can also be a useful source of information.
