Nasscom welcomes European Parliament’s adoption of EU intra-corporate transfers directive

NEW DELHI: The National Association of Software and Service Companies (Nasscom) welcomed the European Parliament’s adoption of a directive that will ease the conditions for technical workers’ travel to Europe, one of the most lucrative growth markets for Indian IT outsourcing companies.

The directive, which was approved by the European Parliament on Monday, lays down the “conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer”. The proposal was approved by a majority of 360 votes to 278.

The directive will allow managers, specialists and graduate trainees to transfer between Nasscom member companies in India and the European Union on the basis of a single intra-corporate transfer permit, Nasscom said in a statement.

It also provides favourable conditions for workers to move from one EU member state to another, receiving the same pay as local workers, sets uniform definitions, application procedures and admission criteria, and allows EU member states to create “fast-track” lists of trusted companies.

“This directive is a necessary step to increase the attractiveness of the EU for Nasscom members and other foreign investors who would be able to transfer their highly skilled personnel faster from one commercial presence to another within the EU,” said R Chandrashekhar, Nasscom president.

The directive now has to be formally approved by EU member states’ ministers in the Council of the European Union before it goes on to become a law, which is expected to take place in the coming weeks. Member states will have to adapt their legal systems to facilitate companies wishing to use this directive, which will take about two years.