The Secondment Contract is essential when an organization needs to temporarily transfer an employee to another company while maintaining the original employment relationship. This arrangement is common in Malaysia for various purposes including project-specific work, skill transfer, or organizational development. The document carefully balances Malaysian employment law requirements with the practical needs of both organizations, covering crucial elements such as dual reporting structures, remuneration arrangements, and compliance with local regulations. It's particularly important in Malaysia's growing economy where cross-company collaborations and international secondments are becoming increasingly common. The Secondment Contract ensures clear documentation of responsibilities, protects all parties' interests, and maintains compliance with Malaysian legal requirements including the Employment Act 1955, Immigration Act 1959/63 (for international secondments), and relevant social security regulations.

1. Parties: Identifies the three parties: home employer, host employer, and the seconded employee

2. Background: Sets out the context of the secondment, including the purpose and the continuing employment relationship with the home employer

3. Definitions: Defines key terms used throughout the agreement, including 'Secondment Period', 'Secondment Services', 'Home Employment Agreement'

4. Term and Duration: Specifies the start date and duration of the secondment, including any provisions for extension

5. Secondment Arrangements: Details the scope of work, reporting relationships, and working arrangements during secondment

6. Employment Status: Confirms continuation of employment with home employer and relationship with host employer

7. Duties and Obligations: Sets out the employee's duties to both employers during secondment

8. Remuneration and Benefits: Details salary, benefits, expenses, and which employer is responsible for each

9. Working Hours and Leave: Specifies working hours, overtime, and leave entitlements during secondment

10. Performance Management: Establishes how performance will be monitored and managed between both employers

11. Confidentiality: Protects confidential information of both home and host employers

12. Intellectual Property: Addresses ownership of IP created during secondment

13. Data Protection: Ensures compliance with Malaysian Personal Data Protection Act

14. Termination: Sets out circumstances and process for early termination of secondment

15. Return to Home Employment: Specifies arrangements for return to home employer after secondment

16. Governing Law: Specifies Malaysian law as governing law and jurisdiction