The Secondment Contract is essential when an organization needs to temporarily assign an employee to another company while maintaining the original employment relationship. This arrangement is common in corporate groups, project-based work, or knowledge transfer situations under German jurisdiction. The document must comply with German labor law, particularly the Arbeitnehmerüberlassungsgesetz (AÜG), and includes detailed provisions on working conditions, compensation, responsibilities, and the tripartite relationship between Home Employer, Host Employer, and Employee. It's crucial for protecting all parties' interests and ensuring legal compliance while facilitating efficient business operations and skill transfer.
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1. Parties: Identification of the three parties: Home Employer (Seconding Company), Host Employer (Host Company), and Employee
2. Background: Context of the secondment arrangement and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Secondment Period', 'Host Company', 'Home Company', etc.
4. Duration of Secondment: Specific start and end dates of the secondment period, including any notice periods for early termination
5. Role and Duties: Description of the employee's position, responsibilities, and reporting lines at the Host Company
6. Place of Work: Location where the seconded employee will perform their duties
7. Working Hours: Specified working hours, rest periods, and overtime arrangements in compliance with ArbZG
8. Compensation and Benefits: Details of salary, benefits, expenses, and which employer is responsible for each component
9. Leave Entitlements: Vacation, sick leave, and other leave arrangements, including approval processes
10. Continued Employment: Confirmation that the employment relationship with the Home Employer continues
11. Obligations of the Host Company: Responsibilities of the Host Company including supervision, safety, training, etc.
12. Data Protection: Handling of personal data in compliance with GDPR/DSGVO
13. Confidentiality: Confidentiality obligations regarding both companies' information
14. Intellectual Property: Ownership and rights regarding work created during secondment
15. Return to Home Company: Arrangements for the employee's return to the Home Company
16. Governing Law: Specification of German law as governing law and jurisdiction
1. International Travel: Include when secondment involves cross-border work, detailing visa requirements and travel arrangements
2. Housing and Relocation: Include when the secondment includes relocation support or housing benefits
3. Tax Equalization: Include for international secondments or when special tax arrangements apply
4. Training Requirements: Include when specific training or certifications are required at the Host Company
5. Performance Management: Include when detailed arrangements for performance reviews between both companies are needed
6. Insurance Coverage: Include when special insurance arrangements are required
7. Works Council Provisions: Include when works council agreements affect the secondment
8. Non-Compete: Include when additional competition restrictions are required
1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting structure at Host Company
2. Schedule 2 - Compensation and Benefits Details: Comprehensive breakdown of all compensation elements and responsible party for each
3. Schedule 3 - Applicable Policies: List of Host Company policies that apply to the seconded employee
4. Schedule 4 - Health and Safety Requirements: Specific safety requirements and procedures at Host Company
5. Appendix A - Contact Details: Key contact persons at both Home and Host Companies
6. Appendix B - Required Notifications: Templates for various required notifications under German law
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