Common use of Payroll Administration Clause in Contracts

Payroll Administration. 12.1 During Employee’s assignment abroad, the Employee will remain on the payroll of Levi ▇▇▇▇▇▇▇ (UK) Ltd and will be paid in £ pounds sterling. The salary will be paid into the Employee’s UK bank account. The Employee’s salary and benefits will be administered in the UK according the UK policies, plans and programs. 12.2 With respect to social security, when exists a treaty between the UK and the host country of assignment. LS UK HR department will request a European Union document E101 on behalf of the Employee which will keep him in the UK social security as well as a document E106. 12.3 The Employee will continue to be subject to UK taxes during his employment. Employee’s salary, bonuses and the fringe benefits received in the host country (company car, housing and utilities) will be declared to the host country tax authorities. The host country taxes due will be borne by the company as per the tax equalization guidelines attached. In connection with the Employee’s UK tax return the Company’s advisers shall cooperate with the Employee’s advisers. 12.4 Employee’s host country tax matters will be handled by the Company’s external tax advisor in the host country to ascertain the impact which the Employee’s host country assignment could have on the UK tax situation. The external’s host country tax advisor will work with their Birmingham office to ensure that the Employee neither gains nor loses in terms of taxes for the duration of the employment. Should the granting of fringe benefits to the Employee in the host country have a negative impact on local tax return, the company will reimburse the additional taxes the Employee has to bear. Alternatively, the Employee may find that he will be able to reclaim some UK taxes because of the time worked out of the country. In this case, that reimbursement should be repaid to the company. By signing this contract the Employee agrees to repay to the Company any tax credits that the Employee will receive from the UK in connection with his assignment abroad.