Secondment
What is Secondment?
A temporary transfer of an employee to another organization, department, or country, with the expectation that they will return to their original role upon completion.
Secondments are used for a variety of purposes, including skills development, knowledge transfer, relationship building with partner organizations, and addressing short-term resource needs. They can be internal (within the same organization) or external (to a client, partner, or government entity).
From a legal perspective, secondments require careful structuring to ensure compliance with employment law, tax regulations, and immigration requirements in both the home and host jurisdictions. The original employment relationship is typically maintained, with the seconding entity retaining responsibility for salary, benefits, and termination provisions.
A well-drafted secondment agreement should specify the duration, reporting lines, intellectual property ownership, confidentiality obligations, and the terms under which the secondment may be extended or terminated early.
Explore further
Frequently Asked Questions
How does a secondment work in practice?
A secondment begins with a tripartite agreement between the home employer, the receiving entity, and the employee. The agreement covers duration, work scope, supervision, cost recharge, and return arrangements. The seconded employee typically remains on the home payroll, with costs recharged to the receiving entity. Secondments commonly last six months to two years.
What is the difference between a secondment and an international assignment?
A secondment loans the employee to another organization or entity while maintaining the home employment relationship and typically involves a cost recharge between entities. An international assignment moves the employee to another country to work for the same employer, often with mobility allowances and tax equalization. Secondments are common between affiliates, partners, or client engagements.
Why do organizations use secondments?
Organizations use secondments to share specialist skills across business units, develop talent through cross-functional experience, support joint ventures and client engagements, and meet temporary capacity needs without permanent hiring. Secondments give employees development opportunities while letting the home employer retain the talent long-term. They are also used to manage cross-border tax and immigration positions.
Related Terms
International Assignment
A formal arrangement in which an employee is sent to work in a country other than their home country for a defined period, typically ranging from a few months to several years.
Dual Employment
An arrangement in which an employee holds employment contracts with both their home and host country entities simultaneously, commonly used for tax, benefits, or legal compliance purposes.
Assignment Letter
A formal document outlining the terms and conditions of an international assignment, including duration, compensation, benefits, housing, and repatriation provisions.