Which term denotes the legal instrument used to transfer employees between domestic units of a large corporation for a defined period?

• A. Secondary agreement
• B. Employment Contract in China
• C. L-1 visa
• D. Short-term assignments

Answer: (B)

Intra-firm transfers within the same country are governed by the employee’s contract in that country. The employment contract in China serves as the binding document that formalizes the relationship and sets out the terms for the period of the transfer, including role, duration, compensation, and reporting lines. While a secondment or assignment addendum can accompany it to reflect temporary terms, the primary legal instrument that legitimizes the move between domestic units is the employment contract in China. An L-1 visa is for cross-border transfers to another country (such as the US) and doesn’t apply to domestic moves. Short-term assignments describe the nature of the move rather than the governing document, and a secondary agreement is typically supplementary. Therefore, the employment contract in China is the best answer.