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When and why are employees transferred to a new entity in China?

As part of Horizons’ continued growth and strategic alignment, we are relocating our China headquarters to Jiangsu province, where we now support our largest client base. To reflect this change, employees currently engaged through Horizons' Shanghai entity and located outside of Shanghai will be transferred to a newly registered Horizons China entity in Jiangsu.

This is a purely administrative change. There will be no negative impact to employees’ terms of employment, benefits, or compensation. The transfer supports Horizons’ efforts to streamline operations, improve local compliance, and align with our expanding client presence in Jiangsu and surrounding regions.

Timeline of the Transfer

July (current): Clients notified of the upcoming entity transfer
Late July / Early August: Affected employees will be contacted by Horizons and provided with a detailed explanation of the process
August: Signing of Mutual Termination and Transfer Agreements (MTTAs) and new employment contracts begins
August: Employee records updated; legal transition to the Jiangsu entity finalized
September: Operations and employment continue as usual under the new entity, with no change to employment conditions

Frequently Asked Questions

1. Why is Horizons transferring employees to a new entity?

Horizons is relocating its China headquarters to Jiangsu province to better support our growing client base in the region. Transferring employees who are based outside of Shanghai—especially those in Jiangsu—helps align our legal and operational structure with our workforce distribution and enhances regional compliance.

2. Can employees remain under the Shanghai entity?

Only employees who are based in Shanghai will remain under the existing Shanghai entity. Employees located outside of Shanghai will be transferred to the new Jiangsu entity as part of this administrative realignment.

3. Will this transition affect employee benefits such as social insurance, housing fund, or IIT?

In most cases, there will be no changes to employees’ benefits. Social insurance contributions, housing fund payments, and individual income tax (IIT) declarations will continue as usual. If your specific working location requires any adjustments, your Horizons Account Manager will contact you directly to explain any differences.

4. Will the expense reimbursement process change?

The overall process for submitting expenses remains the same. However, due to the transfer between entities, there is a change regarding fapiao (invoice) titles:

Before the transfer: All outstanding expenses incurred before your new employment contract begins must be submitted with fapiaos titled to the Shanghai entity.
After the transfer: Any expenses incurred from the start date of your new employment contract must be submitted with fapiaos titled to the new Jiangsu (Yixing) entity.

We recommend submitting any pending expense claims as soon as possible before the transfer takes effect to avoid confusion or delays.

5. What happens to employees’ existing service years?

Your service years will be fully recognized and preserved. As part of the process, employees will sign two documents:

A Mutual Termination and Transfer Agreement (MTTA), which acknowledges and protects your full service history.
A new employment agreement under the Jiangsu entity, with unchanged terms and benefits.

Documents

Sample Mutual Termination and Transfer Agreement (MTTA)
Sample Employment Agreement

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