{"id":190544,"date":"2024-09-25T01:53:57","date_gmt":"2024-09-25T00:53:57","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=190544"},"modified":"2024-09-25T01:55:03","modified_gmt":"2024-09-25T00:55:03","slug":"secondment-agreement","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/secondment-agreement\/","title":{"rendered":"What is a Secondment Agreement?"},"content":{"rendered":"\n<p>As a business owner in the UK, you may find yourself in need of additional skilled workers for a specific project or busy period. Rather than going through the lengthy and costly process of hiring permanent employees, you could consider taking on staff through a secondment agreement. A secondment allows you to hire experienced professionals temporarily by &#8216;borrowing&#8217; them from another company for a set timeframe. This article outlines the secondment process and how your business can benefit from this arrangement.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Secondment?<\/h2>\n\n\n\n<p>A secondment is when an employer (the &#8216;seconder&#8217; or &#8216;sending employer&#8217;) temporarily releases one of their employees to work for a separate company (the &#8216;second company&#8217; or &#8216;receiving company&#8217;).<\/p>\n\n\n\n<p>During this secondment period, the worker (known as the &#8216;secondee&#8217;) remains employed by their original seconder company. However, they work under the day-to-day supervision, direction, and control of you, the second company.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>For example, an IT company may second one of their software developers to work on a project for your manufacturing business for six months. The software developer remains employed by the IT company but works on your premises as part of your team during that time.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">The Benefits of Secondments for SMEs<\/h2>\n\n\n\n<p>For small and medium enterprises, taking on seconded workers through a well-structured secondment agreement can offer numerous advantages over permanent hiring or using typical temporary staffing agencies.<\/p>\n\n\n\n<p>Some of the key benefits are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Access to Specialised Skills:<\/strong> You gain access to experienced professionals with niche skills and expertise for a specific project or time period without having to recruit and hire them permanently.<\/li>\n\n\n\n<li><strong>Cost Savings: <\/strong>Secondments can be more cost-effective than hiring permanent employees or paying temp agency fees, especially for short-term resourcing needs.<\/li>\n\n\n\n<li><strong>Staffing Flexibility: <\/strong>You can quickly bring in additional staffing support when required while avoiding the hassle and costs of full-time recruitment.<\/li>\n\n\n\n<li><strong>Knowledge Sharing: <\/strong>Secondees can transfer valuable skills and knowledge to your existing team during the secondment period.<\/li>\n<\/ul>\n\n\n\n<p>Essentially, secondments provide a flexible, low-risk way for SMEs to enhance their available skills and resources without a long-term commitment.<\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/11\/23002631\/Screenshot-2025-10-23-at-10.26.05-am.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">2025 Key UK Employment Law 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This contract should clearly set out the obligations and rights of all three parties involved: the seconder company, the secondee, and you as the receiving second company. As the host, you will need to enter into a secondment agreement with the seconder company.\u00a0<\/p>\n\n\n\n<p>The seconder company has the responsibility of ensuring that the provisions in the secondment agreement are accurately reflected in a letter to the secondee.&nbsp;<\/p>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>Engaging a lawyer to draft or review the document based will ensure all crucial terms are robustly covered, particularly concerning employment rights, tax liabilities, and compliance with IR35. By investing in professional drafting support, you can equip your business to take on additional workers without unnecessary risks or costs.<\/p>\n<\/div>\n\n\n\n<p>Here are some of the key terms that should be covered.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Secondment Period<\/h3>\n\n\n\n<p>Specifying the exact start and end dates for the temporary secondment is crucial. Periods can range from a couple of weeks to a few years. The agreement should also cover provisions for extending or renewing the secondment period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Secondee Duties and Standards<\/h3>\n\n\n\n<p>There should be clauses covering details of the secondee\u2019s:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>work role;\u00a0<\/li>\n\n\n\n<li>duties;\u00a0<\/li>\n\n\n\n<li>targets; and\u00a0<\/li>\n\n\n\n<li>performance expectations.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>You should also include how you will review and manage performance.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Seconder Obligations<\/h3>\n\n\n\n<p>The seconding employer&#8217;s ongoing responsibilities, such as paying the secondee&#8217;s salary, benefits, and insurance. This also includes managing ongoing employee relations issues and performance management.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Second Company Obligations<\/h3>\n\n\n\n<p>Your obligations as the receiving company, which must be outlined in the contract, may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>day-to-day supervision;<\/li>\n\n\n\n<li>providing equipment;\u00a0<\/li>\n\n\n\n<li>training the seconding employee for your workplace; and\u00a0<\/li>\n\n\n\n<li>potentially reimbursing some employment costs, such as travel expenses.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>By comprehensively documenting each party&#8217;s responsibilities in a robust secondment agreement, you minimise the risks and ensure all sides understand exactly what is expected during the temporary working arrangement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Payment Terms&nbsp;<\/h3>\n\n\n\n<p>How and what the second company will pay the second, whether a fee, reimbursement of salary\/employer costs, or a combination, must be included within the contract. Ensure that payment terms are detailed, including any administration fees or overheads.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Working Arrangements<\/h3>\n\n\n\n<p>The contract should have practical details, such as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>working hours;<\/li>\n\n\n\n<li>office\/equipment provisions;<\/li>\n\n\n\n<li>reporting lines;\u00a0\u00a0<\/li>\n\n\n\n<li>any training requirements; and\u00a0<\/li>\n\n\n\n<li>potential <a href=\"https:\/\/legalvision.co.uk\/employment\/working-from-home\/\">remote working arrangements<\/a>.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Confidentiality and Intellectual Property&nbsp;<\/h3>\n\n\n\n<p>To <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/protect-confidential-information\/\">protect commercially sensitive information<\/a>, restrict what data the secondee can share. Additionally, you may suggest including non-disclosure agreements (NDAs) to safeguard confidential information.<\/p>\n\n\n\n<p>A further consideration is who owns any IP created by the secondee during the secondment period, which the contract should specify.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Early Termination<\/h3>\n\n\n\n<p>This will allow either party to terminate the secondment early if the agreement terms are breached or the arrangement is no longer viable. Define notice periods required for early termination and any conditions or compensations tied to early termination.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Other Legal Considerations<\/h2>\n\n\n\n<p>While the secondee remains employed by the original seconder company, as the second &#8216;receiving&#8217; company you still have some key legal obligations to be aware of, outlined below.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tax and National Insurance<\/h3>\n\n\n\n<p>In most cases, the original employer continues to pay the secondee\u2019s wages, they also remain for handling all the tax-related matters, including PAYE and National Insurance Contributions. However, although less common, you may decide to pay the secondee directly. If this is the case, you may need to handle the PAYE and National Insurance Contributions yourself.\u00a0<\/p>\n\n\n\n<p>This means you need to add the secondee to your own payroll system. When considering the secondment agreement, you should clearly set out who will handle pay and taxes to avoid confusion later on down the line.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Employment Rights<\/h3>\n\n\n\n<p>Although not their direct employer, you must still uphold the secondee&#8217;s basic statutory employment rights around matters such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>working hours;<\/li>\n\n\n\n<li>discrimination;\u00a0<\/li>\n\n\n\n<li>fair dismissal;\u00a0<\/li>\n\n\n\n<li>minimum wage; and\u00a0<\/li>\n\n\n\n<li>holiday entitlements.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>This includes adhering to various relevant employment laws and regulations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Health and Safety<\/h3>\n\n\n\n<p>You have the same <a href=\"https:\/\/legalvision.co.uk\/employment\/legal-importance-health-safety-small-businesses\/\">legal duty of care regarding health and safety<\/a> for seconded workers as your own staff. This includes providing a safe workplace, conducting appropriate risk assessments, and offering the necessary training and protective equipment for their role.\u00a0<\/p>\n\n\n\n<p>By being aware of these legal responsibilities upfront, you can ensure your secondment agreements and working practices are fully compliant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>As a receiving business, secondments offer you a flexible and cost-effective way to bring in skilled workers on a temporary basis, giving you access to specialised expertise without the long-term commitment of permanent hires. A well-structured secondment agreement is essential to ensure everyone&#8217;s rights and obligations are clear. Even though the secondee remains employed by their original employer, you still have important responsibilities, including tax, employment rights, and health and safety. By seeking professional drafting advice, you can minimise legal risks and ensure a smooth secondment, allowing you to focus on the benefits of enhanced skills and resources for your business.<\/p>\n\n\n\n<p>If you are drafting a secondment agreement, our experienced <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1727224970351\"><strong class=\"schema-faq-question\"><strong>What is the difference between a secondment and temporary staffing?<\/strong><\/strong> <p class=\"schema-faq-answer\">With typical temporary staffing, you take on &#8216;temps&#8217; as your own employees for a fixed period through an agency. In a secondment, the worker remains employed by their original company but works under your supervision temporarily.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1727224985840\"><strong class=\"schema-faq-question\"><strong>Can I eventually hire the secondee permanently?<\/strong><\/strong> <p class=\"schema-faq-answer\">Many secondment agreements include a provision allowing the second company to permanently hire the seconded worker after the secondment ends if both parties agree. This allows a &#8216;try before you buy&#8217; scenario.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1727225010179\"><strong class=\"schema-faq-question\"><strong>What happens if the secondment needs to end early?<\/strong><\/strong> <p class=\"schema-faq-answer\">Secondment agreements should include clauses that allow either the seconder or second company to terminate the arrangement before the intended end date if circumstances require it, such as the secondee not meeting performance standards. Define notice periods and any conditions or compensations tied to early termination.<br\/><br\/>By taking the time to understand secondments and put robust legal agreements in place, SMEs can benefit from this flexible resourcing solution while remaining compliant and protected.<\/p> <\/div> <\/div>\n\n\n\n<p><strong><br><\/strong><\/p>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/190544\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/secondment-agreement\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is a Secondment Agreement?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a business owner in the UK, you may find yourself in need of additional skilled workers for a specific project or busy period. Rather than going through the lengthy and costly process of hiring permanent employees, you could consider taking on staff through a secondment agreement. A secondment allows you to hire experienced professionals<a href=\"https:\/\/legalvision.co.uk\/employment\/secondment-agreement\/\">Continue reading <span class=\"sr-only\">&#8220;What is a Secondment Agreement?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13458,"featured_media":3208,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,521,2209,2210],"class_list":["post-190544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-employee","tag-secondment","tag-hiring"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Secondment Agreement? 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