Alex Denne
Growth @ Genie AI | Introduction to Contracts @ UCL Faculty of Laws | Serial Founder

Creating a Secondment Agreement

23 Mar 2023
31 min
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Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Securing a secondment agreement is an essential part of the employment process, especially in today’s globalized economy. Companies or organizations can reap the benefits of an employee’s services without having to make a permanent commitment to them by using such agreements, while employees can gain valuable experience both in and outside of their current position. A well-crafted secondment agreement is key to ensuring that these arrangements are beneficial for both parties - outlining the duties and responsibilities of each, as well as any applicable remuneration. Such agreements are also useful when transferring employees between jurisdictions and ensuring compliance with local legislation.

At Genie AI, we understand the importance of a good secondment agreement, and have created a free template library with millions of data points that teach our AI what constitutes a market-standard contract. Our templates provide guidance on drafting your own tailored agreement quickly and legally - no expertise or Genie AI account required! What’s more, our document creation tools make it easy to customize existing contracts so they remain up-to-date with different individual circumstances - making sure you get all the legal protections you need without any extra stress.

All in all, secondment agreements play an important role in providing job security for both employers and employees alike; however creating them can be complex due to different local laws across various jurisdictions. That’s why it’s essential that employers take steps to ensure their contracts are legally binding from day one - something made easier through using resources like our template library here at Genie AI. For further information about how we help create custom documents for different scenarios as well as step-by-step guidance on creating your own secondment agreement today click below!

Definitions (feel free to skip)

Secondment Agreement: A legally binding agreement between an employer and employee that allows the employer to temporarily assign an employee to another company or organization.
Duration: The length of time of the secondment agreement.
Rights and Responsibilities: The specific rights and responsibilities of both the employer and employee as outlined in the agreement.
Conditions for Ending: The specific conditions for ending the agreement and the associated obligations for both the employer and employee.
Laws and Regulations: Rules and laws that both parties are required to adhere to as outlined in the agreement.
Additional Duties: Any duties or responsibilities that are outside the scope of the original agreement.
Restrictions: Any limitations on an employee’s working hours, travel, or contact with other organizations or individuals.
Scope of Authority: The range of decisions and actions that the employee is allowed to take without the employer’s approval.
Communication Protocols: The specific ways of communicating between the two organizations as outlined in the agreement.
Confidentiality and Data Protection: Measures taken to protect the confidential information and data of both the employer and employee.
Agreement Template: A standard agreement that both the employer and employee create together, with legal advice, to ensure it meets their needs.
Signed Documents: The legally binding documents that have been signed by both the employer and employee.
Documenting Changes: Recording any changes made to the agreement.
Dispute Resolution: A process to resolve any disputes that may arise between the two parties.
Terminating the Agreement: Following the process outlined in the agreement to end it.

Contents

  • Clarifying the purpose of the agreement and its duration
  • Discussing the terms of the agreement, including any salary, benefits, and other compensation
  • Ensuring that both parties understand the full extent of the agreement, including any rights and responsibilities
  • Specifying the conditions for ending the agreement and the associated obligations
  • Outlining any applicable laws and regulations that must be adhered to
  • Covering health and safety considerations for the employee
  • Determining whether the employee will be required to take on any additional duties
  • Explaining any restrictions that may be placed on the employee while on secondment
  • Defining the scope of the employee’s authority and decision-making within the organization
  • Establishing the lines of communication between the two organizations
  • Discussing confidentiality and data protection, including any applicable laws and regulations
  • Drafting an agreement template and obtaining legal advice
  • Signing the agreement and obtaining copies of the signed documents
  • Communicating the agreement to all relevant parties
  • Keeping a record of the agreement
  • Scheduling regular reviews of the agreement
  • Ensuring that amendments to the agreement are documented and communicated
  • Resolving any disputes that may arise
  • Documenting any changes to the agreement
  • Terminating the agreement in accordance with the terms of the agreement

Get started

Clarifying the purpose of the agreement and its duration

  • Identify the purpose of the agreement.
  • Determine the length of time for the secondment.
  • Agree on what the employee will be doing and any additional responsibilities.
  • Outline the rights and duties of both parties.
  • Discuss any potential risks associated with the agreement.

Once all of this information is established, the step can be checked off the list and the next step can be discussed.

Discussing the terms of the agreement, including any salary, benefits, and other compensation

  • Discuss the specifics of the agreement, such as salary, other compensation, and any benefits
  • Establish how much the secondee will be paid, and how often
  • Decide whether additional benefits such as accommodation, flights, and travel expenses will be provided
  • Agree on the duration of the secondment
  • Ensure both parties understand any rights and responsibilities associated with the agreement
  • Document all terms and conditions in the agreement
  • When all terms have been agreed upon, both parties should sign the agreement
  • After the agreement is signed, it is legally binding and both parties should ensure that the terms are followed
  • When all terms have been agreed upon and the agreement has been signed, you can move on to the next step.

Ensuring that both parties understand the full extent of the agreement, including any rights and responsibilities

  • Review the agreement and ensure that both parties have a good understanding of the terms, rights and responsibilities
  • Discuss any questions or concerns that either party may have
  • Make sure both parties understand the time frame, salary or other compensation, and any other conditions of the agreement
  • Make sure both parties agree to the terms and sign the agreement
  • Once both parties have signed the agreement, you can move on to the next step of specifying the conditions for ending the agreement and the associated obligations.

Specifying the conditions for ending the agreement and the associated obligations

  • Outline the conditions under which the agreement may be terminated, such as providing a specified period of notification or fulfilling certain obligations
  • Make sure both parties understand the conditions of termination and the obligations they are to uphold
  • Note that one party may have the right to terminate the agreement without providing notice, and any associated obligations must be met
  • Specify the process that must be followed if either party wishes to terminate the agreement
  • Make sure both parties understand the consequences of terminating the agreement, such as any financial obligations or other considerations
  • When you have detailed the conditions for ending the agreement, the associated obligations, and the consequences of termination, you can check this off your list and move on to the next step.

Outlining any applicable laws and regulations that must be adhered to

  • Research applicable laws and regulations that must be adhered to for the particular secondment agreement.
  • Ensure that these laws and regulations are included in the agreement.
  • Check with legal counsel to ensure that all laws and regulations are accurately listed in the agreement.
  • Once all applicable laws and regulations are listed in the agreement, you can check this step off your list and move on to the next step.

Covering health and safety considerations for the employee

  • Consult relevant health and safety regulations and legislation.
  • Ensure that the employee is aware of any health and safety risk they may be exposed to while on secondment.
  • Make sure the employee is aware of any potential hazards associated with the secondment role and the workplace.
  • Ensure the employee is aware of any health and safety procedures that must be followed while on secondment.
  • Ensure the employee has been provided with appropriate safety training for the secondment role.
  • Include any health and safety considerations in the secondment agreement.

You can check this off your list when you have consulted relevant health and safety regulations, ensured that the employee is aware of any potential risks and hazards, provided the employee with appropriate safety training, and included any health and safety considerations in the secondment agreement.

Determining whether the employee will be required to take on any additional duties

  • Determine the duties the employee will be required to complete while on secondment
  • Review current job description and discuss additional duties with the employee
  • Make sure to include any additional duties in the secondment agreement
  • Check that the additional duties are within the employee’s job grade and/or skill level
  • Update the job description to reflect any changes to duties while on secondment
  • When all duties have been discussed and agreed upon, move on to the next step in the guide

Explaining any restrictions that may be placed on the employee while on secondment

  • Determine what restrictions, if any, should be placed on the employee while on secondment. Restrictions could include the employee’s ability to make certain decisions, access certain areas of the organization, or collaborate with specific departments.
  • Draft a clause in the secondment agreement that outlines the restrictions that have been identified.
  • Consult with the employee to ensure they are comfortable with the restrictions listed in the clause.
  • Finalize the clause and include it in the secondment agreement.

How you’ll know when you can check this off your list and move on to the next step:

  • When the clause has been finalized and included in the secondment agreement.

Defining the scope of the employee’s authority and decision-making within the organization

  • Brainstorm a list of the types of decisions the employee will be allowed to make while on secondment
  • Draft a contract outlining the limits of the employee’s authority and decision-making capabilities while on secondment
  • Outline any additional restrictions on the employee’s decision-making authority within the organization
  • Have the contract reviewed by a legal professional to ensure that all the requirements are being met
  • When the contract is finalized, get the employee to sign it and keep a copy for your records

Once the contract is signed and the employee’s decision-making authority is defined, you can check this off your list and move on to the next step of establishing the lines of communication between the two organizations.

Establishing the lines of communication between the two organizations

  • Create a communication plan that outlines the roles and responsibilities of each organization
  • Identify who will be responsible for sending and receiving communications from both organizations
  • Establish a schedule for regular check-ins
  • Determine the best means of communication for all parties (e.g. email, phone, video conferencing)
  • Agree on a timeline for responses
  • Agree on a way to escalate any issues that arise

You can check this step off your list when there is an established plan that all parties agree to and understand.

Discussing confidentiality and data protection, including any applicable laws and regulations

  • Research applicable laws and regulations related to data protection for the organization and any country involved in the secondment
  • Identify any additional confidentiality and data protection requirements, such as non-disclosure agreements
  • Discuss with both organizations the confidentiality and data protection requirements that must be met
  • Document the agreed upon confidentiality and data protection requirements in the agreement
  • Once both organizations have agreed upon the confidentiality and data protection requirements, you can check this step off your list and move on to drafting an agreement template and obtaining legal advice.

Drafting an agreement template and obtaining legal advice

  • Research and create a template of the secondment agreement
  • Ensure that the agreement covers all relevant topics such as the duration of the secondment, job description and duties, salary, benefits, etc.
  • Have the agreement reviewed by an attorney or legal professional to ensure that it is in compliance with applicable laws
  • Make any necessary revisions to the agreement
  • Once the agreement is finalized and approved, proceed to the next step of signing the agreement and obtaining copies of the signed documents

Signing the agreement and obtaining copies of the signed documents

  • Obtain signatures from both parties involved in the agreement
  • Make sure that both parties keep a copy of the signed agreement
  • Have the original agreement stored in a secure location
  • Check that all signatures and dates are correct
  • When the signatures and dates have been verified, this step is complete and you are ready to move on to communicating the agreement to all relevant parties.

Communicating the agreement to all relevant parties

  • Notify all parties involved in the agreement of the secondment and its terms.
  • Send copies of the signed agreement to all relevant parties.
  • Ensure all parties have received the agreement and read and understood its terms.
  • When all parties have been notified and have received and understood the agreement, you can check this off your list and move on to the next step.

Keeping a record of the agreement

  • Make sure to keep a copy of the agreement for both parties and ensure that all signatories have a signed copy
  • Make sure to store the agreement in a secure location where it can easily be accessed by all parties
  • Set up a reminder system and schedule a time to review the agreement regularly
  • Once the agreement is signed, stored securely, and reminders have been set up, you can check this step off your list and move on to the next step.

Scheduling regular reviews of the agreement

  • Schedule regular reviews of the agreement - e.g., quarterly or yearly
  • Set up an agenda for each review, to ensure that all required points are discussed
  • Have a representative from both parties present at each review
  • Document any decisions made and any amendments to the agreement
  • Check that the agreement is still fit for purpose
  • Once the review is complete, be sure to update the agreement accordingly
  • You will know that the step is complete when the review is conducted, all decisions are documented, and any amendments to the agreement are communicated.

Ensuring that amendments to the agreement are documented and communicated

  • Make sure to document any amendments to the Secondment Agreement in writing, signed and dated by both parties.
  • Ensure that the changes are communicated to both parties in a timely manner.
  • Ensure that all changes are agreed upon by both parties.
  • Keep a record of all changes and any resulting correspondence.
  • You can check this off your list and move on to the next step when all changes have been documented, communicated, and agreed upon.

Resolving any disputes that may arise

  • Make sure to include a dispute resolution clause in the agreement, which outlines how any disagreements should be handled and how they can be resolved
  • If any disputes arise, take the necessary steps to resolve them in accordance with the dispute resolution clause
  • Ensure that all parties agree to the resolution and that it is incorporated into the agreement
  • When the dispute is resolved and all parties have agreed to the resolution, you can move on to the next step of document any changes made to the agreement.

Documenting any changes to the agreement

• If either party wishes to make changes to the agreement, they must be documented in writing.
• Ensure that the revisions are signed by both parties.
• The written revision should be dated and kept with the original agreement.
• Make a copy of the revised agreement for both parties.
• You will know that this step is complete when both parties have signed the revised agreement and have copies of the revised agreement.

Terminating the agreement in accordance with the terms of the agreement

  • Ensure that you have documented the termination of the agreement in writing and that both parties have signed and dated the document
  • If either party terminates the agreement, they must provide a written notice of termination to the other party
  • If either party wishes to terminate the agreement, they must do so in accordance with the specific terms of the agreement
  • Determine any potential financial obligations that either party may have to the other for terminating the agreement
  • Once the agreement is terminated, both parties should have a copy of the termination document for their records
  • Once all the steps for terminating the agreement are completed, you can check this step off your list and move on to the next step.

FAQ:

Q: How do I ensure my Secondment Agreement is legally binding?

Asked by Nick on May 13th, 2022.
A: To ensure your Secondment Agreement is legally binding, you should ensure that it is signed by both parties and is written in accordance with the laws of the jurisdiction in which it is made. It must be clear and unambiguous, and both parties should be clear on their rights and obligations. Generally, this means that the agreement should be written in plain language and the parties should understand what the agreement is about. If you are unsure about any aspect of the agreement or if there are any discrepancies between the two parties, you should seek legal advice before signing it.

Q: What should I do if there is a dispute over my Secondment Agreement?

Asked by Amanda on April 15th, 2022.
A: If there is a dispute over your Secondment Agreement, you should first try to resolve it through negotiation and mediation. If this does not work, then you may need to seek legal advice and consider taking legal action to enforce your rights under the agreement. Depending on the jurisdiction in which the agreement was made, there may be different options available to you such as arbitration or court proceedings. It is important to seek legal advice before taking any action so that you can be sure of your rights under the agreement.

Q: Are Secondment Agreements applicable in all countries?

Asked by Kyle on August 17th, 2022.
A: The specific laws applicable to Secondment Agreements can vary depending on the country in which it was made. Generally speaking, most countries have laws that deal with employment contracts and labour rights which will apply to Secondment Agreements. However, it is important to consult with a lawyer in the relevant jurisdiction in order to determine how those laws will apply to your particular situation.

Q: What type of information should be included in a Secondment Agreement?

Asked by Logan on December 10th, 2022.
A: A Secondment Agreement should include details such as the start date and duration of the secondment period, the duties that will be expected of the employee during their secondment period, any compensation or remuneration they will receive during their secondment period, any relevant workplace policies that will apply during their secondment period, and any other terms or conditions that are relevant to their secondment period. It should also include provisions regarding how disputes will be resolved and how termination of the agreement will be handled.

Q: How long does a Secondment Agreement typically last?

Asked by Chloe on July 28th, 2022.
A: The length of a Secondment Agreement can vary depending on the needs of both parties and the specific circumstances of the agreement. Generally speaking, a Secondment Agreement can last for any duration that is agreed upon by both parties but it typically lasts for a few months up to a couple of years. It is important to ensure that both parties are clear on what duration they are agreeing to before signing the agreement so that they are not left with any surprises down the line.

Q: What happens if an employee breaches their Secondment Agreement?

Asked by Jacob on March 3rd, 2022.
A: If an employee breaches their Secondment Agreement then they may face consequences such as being dismissed from their position or having their pay reduced or suspended for a period of time. Depending on the severity of the breach and other relevant factors such as any previous warnings or reprimands given to them for similar breaches, an employer may choose to take disciplinary action against them or even pursue legal action against them for breach of contract. It is important for employers to take into consideration all relevant factors before deciding how best to proceed in such circumstances.

Q: Are there any specific laws that govern Secondment Agreements?

Asked by Emma on October 1st, 2022.
A: The laws applicable to Secondment Agreements can vary from country to country but generally speaking there are some common elements such as labour laws which govern matters such as pay rates and working conditions as well as contract law which outlines how agreements should be formed and enforced. It is important to ensure that you understand all relevant laws when entering into a Secondment Agreement so that you can ensure compliance with all relevant regulations and protect both parties’ rights under it.

Q: How do I know if I need a Secondment Agreement?

Asked by Olivia on February 24th, 2022.
A: Generally speaking, if an employee is going to be working outside their home organisation for more than a few weeks then it is advisable to have a written document outlining their duties during their secondment period as well as outlining their rights and obligations under it. This document is known as a Secondment Agreement and can provide clarity for both parties as well as protect them from potential disputes down the line if something goes wrong during their secondment period. It is worth consulting with a lawyer who specialises in employment law if you are unsure whether you need one for your particular situation or not so that you can make an informed decision about what’s best for you and your business.

Q: What happens when an employee terminates their Secondment Agreement early?

Asked by Ethan on June 8th, 2022.
A: If an employee terminates their Secondment Agreement early then they may have some obligations under it which they must fulfill before they leave such as giving notice or paying back money received during their secondment period. Depending on how early they terminate it and other relevant factors such as any agreed upon penalties for early termination outlined in the agreement itself, they may also need to pay damages or other compensation payments back to their employer if applicable under applicable law or according to what was agreed upon between both parties at the time of signing it. As with all matters related to employment law it is always best practice to consult with a lawyer before taking any action so that you are aware of all relevant regulations governing such matters in your jurisdiction before proceeding further.

Q: Can I include non-compete clauses in my Secondment Agreement?

Asked by Michael on September 11th, 2022.
A: Non-compete clauses can be included in Secondment Agreements but they must comply with all applicable laws regarding competition law which can vary from jurisdiction to jurisdiction depending on where you are located geographically. Generally speaking though, these clauses must not restrict an employee’s ability to pursue gainful employment after leaving an organisation unreasonably nor must they prevent them from pursuing activities related to their profession or trade after leaving an organisation’s employ unless specifically outlined in pre-agreed terms between both parties at the time of signing it otherwise they may be deemed unenforceable under applicable law so it is always advisable to consult with a lawyer before including them in your agreements so that you can make sure you understand all applicable regulations beforehand when making decisions about how best to structure these agreements going forward

Example dispute

Possible Lawsuits Referencing Secondment Agreement

  • A plaintiff may sue for breach of contract if their secondment agreement was not followed. This could include failure to provide the agreed upon level of compensation, benefits, or other duties outlined in the agreement.
  • A secondment agreement may be deemed unenforceable if certain elements of the agreement are found to be illegal or in violation of civil or employment law. In this case, the plaintiff may be able to recoup any damages incurred as a result of the breach of agreement.
  • The plaintiff may also be able to sue for wrongful termination if they were dismissed without cause or in violation of the terms of the secondment agreement.
  • If the secondment agreement did not include a provision which detailed how long the secondment would last, the plaintiff may be able to sue for wrongful termination if their position was terminated without proper cause.
  • The plaintiff may also be able to claim damages if they were not provided the agreed upon compensation, benefits, or other duties outlined in the secondment agreement.
  • If the plaintiff is able to prove that the breach of the secondment agreement resulted in financial loss, such as lost wages or benefits, they may be able to recover those damages.
  • Settlement may be reached through negotiation, mediation, or arbitration. If no agreement can be reached, the plaintiff may be entitled to pursue a civil lawsuit in court.
  • Damages may be calculated based on the amount of financial loss incurred, any emotional distress suffered, or any other damages as deemed appropriate by the court.

Templates available (free to use)

Employer And Third Party Secondment Agreement
Secondment Agreement

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