Secondment Agreement Template for England and Wales

A Secondment Agreement sets out the terms when one company temporarily loans an employee to work at another organization. It's commonly used in professional services, where specialists might spend time helping a client, or within corporate groups sharing talent between divisions.

The agreement covers key details like who pays the employee's salary, what work they'll do, and how long they'll stay. It also handles important legal points under UK employment law - making clear the seconded worker keeps their original employment rights while following their host company's workplace rules. Both organizations need this clarity to manage their obligations and protect everyone involved.

Use a Secondment Agreement when temporarily transferring skilled employees between organizations while maintaining their original employment. This comes up often in professional services - like when an accountant spends six months at a client site, or when a tech specialist helps a partner company implement new systems.

The agreement becomes essential before any staff transfer across company boundaries in the UK. It protects everyone by clearly defining who handles payroll, benefits, and supervision. It's particularly valuable for regulated industries where you need to document compliance with employment laws, maintain clear reporting lines, and manage professional liability risks.

• Employee Secondment Agreement: The standard form covers essential elements like duration, role details, and supervision arrangements. It can be adapted for different scenarios: intra-group transfers between related companies (keeping terms simple), cross-border secondments (adding international compliance elements), client-based arrangements (focusing on service delivery and confidentiality), or knowledge-transfer secondments (emphasizing training and skill development objectives).

• Home Organization (Employer): Initiates the Secondment Agreement, remains the primary employer, and maintains core employment responsibilities like salary and benefits
• Host Organization: Receives the seconded employee, provides day-to-day direction, and takes on specific obligations around workplace safety and supervision
• Seconded Employee: The professional being transferred, who must follow both organizations' policies while maintaining their original employment status
• HR Teams: Handle the practical aspects of the agreement, including coordination between organizations and ensuring compliance with UK employment laws
• Legal Advisers: Draft and review agreements to protect all parties' interests and ensure compliance with employment regulations

• Employment Details: Gather the secondee's current role, salary, and benefits package to ensure continuity
• Duration Planning: Define the exact start and end dates, including any extension options
• Role Specifics: Document the new position's duties, reporting lines, and performance measures at the host organization
• Cost Allocation: Agree which organization pays for salary, expenses, and benefits during the secondment
• Compliance Check: Review relevant UK employment laws and industry regulations affecting the arrangement
• Draft Generation: Use our platform to create a customized agreement that includes all required elements and protects both organizations

• Parties and Roles: Clear identification of home employer, host organization, and seconded employee
• Duration Terms: Specific start and end dates, plus any extension or early termination provisions
• Employment Status: Confirmation that original employment continues with clear reporting lines
• Duties and Location: Detailed description of role, responsibilities, and work location
• Payment Terms: Salary arrangements, expenses, benefits, and which organization covers what costs
• Confidentiality: Protection of both organizations' sensitive information
• Governing Law: Explicit statement that English law applies to the agreement
• Intellectual Property: Clear ownership rules for work created during secondment

A Secondment Agreement differs significantly from an Agency Agreement, though both involve one party working for another. Here's how they fundamentally differ:

• Employment Status: In a secondment, the employee maintains their original employment contract and benefits, while an agency agreement creates a principal-agent relationship without employment ties
• Duration and Purpose: Secondments are typically temporary arrangements for specific projects or skill transfers, while agency agreements often establish ongoing commercial relationships
• Control and Liability: Seconded employees work under the host's day-to-day supervision but remain employed by their original employer. Agents act independently with more autonomy, bearing their own business risks
• Legal Framework: Secondments operate under employment law protections, while agency agreements fall under commercial law and the Commercial Agents Regulations