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A lateral move occurs when an employee moves into a new position within the same pay grade as their current position.
Lateral move example: An employee is an Project Assistant at a paygrade 22. There is an open Medical Office Assistant paygrade 22. The employee applies, interviews, receives and accepts the offer. This is a lateral move. The pay range and paygrade remain the same. This can occur within the current department or moving to a different department.
A transfer is when an employee moves to a position outside their current department. Salary changes may or may not be warranted in the case of a transfer.