Secondment agreement

This agreement is intended to be used where an agreement is reached between an employer, employee and a third party that the employee will work for that third party under contract while continuing in the employment of their original employer. If the employer or the secondee company are part of a group of companies, consideration should be given to the secondee's involvement with other group companies and the implications for the drafting of the agreement. Make sure that your definitions are tailored as appropriate.

What is a secondment/assignment?

The terms secondment/assignment are often used interchangeably. However, the term secondment is usually used where there is a specific contract between the employer and a third party undertaking and the employee is specifically seconded to support that contract, for example, where an employee is provided to another company to act as a consultant to a specific project. The term assignment may be used both for secondment situations and those where an employee works for an affiliate (i.e. an entity within the same group of companies as the employer), or at a branch office of the employer. This might also be referred to as an intra-group assignment. Where the assignment is to another country the term posting is commonly used, although the term detachment is being used more and more frequently. Notwithstanding the use of all these different terms, the concept behind them is identical, i.e. the employee continues to be employed by their employer but the work that they carry out is for the benefit of another undertaking.

You may require the secondee company to cover the remuneration and costs of the employee, including those relating to the additional benefits and costs which are incurred in connection with the secondment. Reimbursement may be either to the employer or directly to the employee. Our agreement provides for the secondee company to pay a fee to you during the period of secondment, and this fee should be calculated to at least cover both the employee’s salary and any additional benefits and costs.

Hold harmless

You may want to include a “hold harmless” and indemnity clause in the agreement, whereby the secondee company will cover you with respect to claims, damages and actions arising from the employee's acts or omissions during the period of secondment.  See our clause 2.

Intellectual property rights

Special rules apply to the ownership of intellectual property produced by employees. If it is possible or likely that the secondee will produce original work which you may wish to protect, use our clause 10 (intellectual property rights) in the agreement. If you do, it is essential that the agreement is executed as a deed; any appointment of an attorney must be executed as a deed to be effective.