Secondment Contract for Canada

Secondment Contract Template for Canada

A comprehensive legal agreement governed by Canadian law that establishes the terms and conditions for the temporary transfer of an employee from their original employer (seconding organization) to another organization (host organization). The document outlines the continuation of employment relationship, defines responsibilities of all parties, addresses compensation and benefits arrangements, specifies reporting structures, and ensures compliance with relevant federal and provincial employment legislation. It includes provisions for performance management, confidentiality, intellectual property rights, and conditions for termination or return to the original employment.

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What is a Secondment Contract?

The Secondment Contract is essential when organizations in Canada need to temporarily transfer employees while maintaining the original employment relationship. This document is commonly used for knowledge sharing, skill development, project collaboration, or resource optimization between organizations. The contract ensures compliance with Canadian federal and provincial employment laws while protecting the interests of all parties involved. It comprehensively addresses crucial aspects such as employment status, compensation, benefits, tax implications, workplace safety, and privacy protection. The agreement is structured to maintain clarity in the three-way relationship between the seconding organization, host organization, and the employee, while ensuring all arrangements align with relevant Canadian employment standards and labor regulations.

What sections should be included in a Secondment Contract?

1. Parties: Identifies the three parties to the agreement: the original employer (seconding organization), the host organization, and the employee

2. Background: Sets out the context of the secondment and the general intention of the parties

3. Definitions: Defines key terms used throughout the agreement

4. Term of Secondment: Specifies the duration of the secondment, including start and end dates

5. Employment Status: Confirms continuation of employment with original employer and relationship with host organization

6. Duties and Responsibilities: Outlines the role and responsibilities of the employee during the secondment

7. Reporting Structure: Defines reporting lines and management structure during secondment

8. Compensation and Benefits: Details salary, benefits, and which organization is responsible for each element

9. Working Hours and Location: Specifies work schedule and place of work

10. Expenses and Reimbursement: Outlines policy on expenses and which organization is responsible for payment

11. Confidentiality: Addresses confidentiality obligations regarding both organizations

12. Intellectual Property: Specifies ownership of work product created during secondment

13. Performance Management: Details how performance will be monitored and evaluated

14. Termination Provisions: Sets out circumstances and procedures for early termination

15. Return to Original Employment: Specifies terms for return to original role or organization

16. Governing Law: Specifies applicable law and jurisdiction

What sections are optional to include in a Secondment Contract?

1. International Arrangements: Required for international secondments, covering visas, work permits, and international tax implications

2. Training and Development: Include when specific training or development objectives are part of the secondment purpose

3. Relocation Provisions: Required when the secondment involves temporary relocation

4. Client Contact Restrictions: Include when there are concerns about client relationships post-secondment

5. Non-Competition: Include when protecting against employee movement to host organization is crucial

6. Benefits Continuation: Required when complex benefit arrangements need detailed explanation

7. Union Considerations: Include when either organization has union agreements affecting the secondment

8. Emergency Procedures: Required for secondments to high-risk locations or industries

9. Data Protection: Include when role involves significant data handling or cross-border data transfers

What schedules should be included in a Secondment Contract?

1. Schedule A - Job Description: Detailed description of the role and responsibilities during secondment

2. Schedule B - Compensation Details: Breakdown of salary, benefits, allowances and payment responsibilities

3. Schedule C - Expense Policy: Detailed policy on claimable expenses and claiming procedures

4. Schedule D - Reporting Structure: Organizational chart showing reporting lines during secondment

5. Schedule E - Performance Metrics: Specific KPIs and performance evaluation criteria

6. Appendix 1 - Required Policies: Key policies of both organizations that the employee must comply with

7. Appendix 2 - Benefits Summary: Detailed overview of benefits continuation and changes during secondment

8. Appendix 3 - Contact Details: Key contact information for both organizations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Technology

Professional Services

Manufacturing

Healthcare

Education

Government

Energy

Construction

Telecommunications

Consulting

Research and Development

Non-Profit

Media and Entertainment

Relevant Teams

Human Resources

Legal

Talent Management

Operations

Project Management Office

Employee Relations

Compensation and Benefits

Global Mobility

Risk and Compliance

Finance

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Employment Lawyer

Talent Management Specialist

Project Manager

Program Director

Department Head

Resource Manager

Operations Manager

Chief Human Resources Officer

Recruitment Manager

Employee Relations Manager

Compensation and Benefits Manager

Mobility Specialist

Industries
Canada Labour Code: Federal legislation governing employment standards, labor relations, and occupational health and safety for federally regulated industries
Employment Standards Act (Provincial): Provincial legislation setting minimum standards for employment terms and conditions, including wages, hours of work, and leaves
Income Tax Act: Federal legislation governing taxation, relevant for determining tax implications of secondment arrangements and ensuring proper tax treatment
Canadian Human Rights Act: Federal law prohibiting discrimination and ensuring equal opportunity in employment
Personal Information Protection and Electronic Documents Act (PIPEDA): Federal privacy law governing the collection, use, and disclosure of personal information in commercial activities
Occupational Health and Safety Act (Provincial): Provincial legislation ensuring workplace safety and defining responsibilities of employers and employees
Workers' Compensation Act (Provincial): Provincial legislation governing workplace injury compensation and insurance coverage during secondment
Employment Insurance Act: Federal legislation governing unemployment insurance and benefits, which may be relevant for secondment arrangements
Canada Pension Plan Act: Federal legislation governing pension contributions and benefits, which must be considered in secondment arrangements
Provincial Labour Relations Act: Provincial legislation governing collective bargaining and union relationships, if applicable to the secondment
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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