Secondment Contract Template for Germany

A Secondment Contract is a specialized legal agreement that governs the temporary assignment of an employee from their original employer (home company) to another organization (host company) while maintaining their primary employment relationship. In Germany, this arrangement must comply with strict labor law requirements, making proper documentation essential for legal protection and operational clarity.

When do you need this document?

You need a Secondment Contract when transferring employees between companies within a corporate group, assigning staff to client projects requiring on-site presence, or facilitating knowledge transfer and training programs. This document is crucial for international assignments where German employees work temporarily for foreign subsidiaries, joint venture projects requiring specialized expertise, and situations where regulatory compliance demands specific staffing arrangements. The contract becomes particularly important when the secondment exceeds short-term consultancy work and involves ongoing employment obligations.

Key legal considerations

The contract must clearly define the tripartite relationship between home employer, host employer, and employee, establishing who bears responsibility for wages, benefits, supervision, and liability. Critical clauses include duration limitations under the AÜG, working time compliance with the Arbeitszeitgesetz, and social security obligations under the Sozialgesetzbuch. You must address occupational safety responsibilities, ensuring both employers meet Arbeitsschutzgesetz requirements, and clarify vacation entitlements under the Bundesurlaubsgesetz. The agreement should specify confidentiality obligations, intellectual property rights, and termination procedures. Works council consultation requirements may apply, particularly for longer secondments or multiple employee transfers. Insurance coverage, including liability and workers' compensation, must be explicitly addressed to prevent gaps in protection.

Legal requirements in Germany

German law requires compliance with the Arbeitnehmerüberlassungsgesetz when secondments resemble employee lending, potentially requiring licensing depending on the arrangement's structure and commercial nature. The contract must respect the employee's original terms under the Bürgerliches Gesetzbuch while accommodating host company requirements. Working time limits and rest periods under the Arbeitszeitgesetz apply regardless of the host location, and social security contributions typically remain with the home employer for domestic secondments. Documentation must be in German or include certified translations for enforceability. The agreement should address data protection under GDPR, particularly for cross-border secondments involving personal data transfer. Regular review and update mechanisms ensure ongoing compliance with evolving labor law requirements and collective bargaining agreements that may impact seconded employees.