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Secondment Agreement
I need a secondment agreement for an employee who will be temporarily transferred to a partner company for a period of 12 months to gain specialized skills, with a clear outline of responsibilities, reporting structure, and return conditions. The agreement should include provisions for maintaining current salary and benefits, and specify the process for extending or terminating the secondment.
What is a Secondment Agreement?
A Secondment Agreement lets one company temporarily loan their employee to work at another company while keeping their original employment contract active. Under Dutch law, this arrangement maintains the worker's primary employment rights and benefits while they contribute their skills to the host organization.
These agreements spell out key details like work duties, duration, costs, and supervision arrangements. They're particularly common in Dutch professional services, where firms share specialized talent for projects or cover temporary staffing needs. The agreement must comply with the Netherlands' Flexible Working Act (WAB) and clearly define each party's responsibilities around matters like workplace safety, confidentiality, and liability.
When should you use a Secondment Agreement?
Use a Secondment Agreement when your organization needs to temporarily share skilled employees with another company. This setup works perfectly for specialized projects requiring expert knowledge, filling temporary skill gaps, or managing peak workload periods without permanent hiring commitments.
The agreement becomes essential when Dutch companies collaborate on joint ventures, need to transfer technical expertise, or want to provide development opportunities for their staff. It's particularly valuable in regulated sectors like finance or IT, where maintaining clear employment relationships and compliance with Dutch labor laws is crucial. Having this agreement in place protects both companies and ensures the seconded employee's rights remain secure.
What are the different types of Secondment Agreement?
- Fixed-term Secondments: Used for project-based assignments with clear end dates, typically lasting 6-24 months
- Cross-border Secondments: Structured for international assignments within the EU, addressing Dutch and host country regulations
- Intra-group Secondments: Designed for employee transfers between affiliated companies or subsidiaries in Netherlands
- Client-site Secondments: Tailored for consulting or professional services firms placing staff at client locations
- Part-time Secondments: Arranged when employees split their time between their primary employer and host organization
Who should typically use a Secondment Agreement?
- Home Company (Primary Employer): Maintains the original employment contract and remains responsible for salary, benefits, and primary HR matters
- Host Company: Receives the seconded employee and provides day-to-day direction, workplace facilities, and project supervision
- Seconded Employee: Works at the host company while retaining employment rights with their original employer
- HR Managers: Coordinate between both companies to manage practical arrangements and ensure compliance with Dutch labor laws
- Legal Counsel: Reviews and drafts agreements to protect both companies' interests and ensure alignment with Dutch employment regulations
How do you write a Secondment Agreement?
- Basic Details: Gather employee information, duration of secondment, and specific role requirements at the host company
- Work Arrangements: Define working hours, location, reporting structure, and performance evaluation process
- Financial Terms: Outline salary continuation, expenses, benefits, and cost-sharing between companies
- Legal Compliance: Check Dutch labor laws, especially regarding working conditions and employee rights
- Practical Matters: Document IT access, confidentiality requirements, and intellectual property arrangements
- Review Process: Use our platform to generate a compliant agreement, then have all parties review the terms before signing
What should be included in a Secondment Agreement?
- Party Details: Full legal names and addresses of home company, host company, and seconded employee
- Secondment Terms: Clear start date, duration, notice periods, and early termination conditions
- Work Scope: Detailed job description, reporting lines, and performance management arrangements
- Employment Rights: Confirmation of continued primary employment and preserved benefits
- Financial Arrangements: Salary continuation, expenses, and cost allocation between companies
- Liability Provisions: Insurance coverage, workplace safety responsibilities, and risk allocation
- Confidentiality: Data protection measures and intellectual property ownership rules
- Dutch Law Compliance: Reference to applicable labor laws and jurisdiction clauses
What's the difference between a Secondment Agreement and an Agency Agreement?
A Secondment Agreement differs significantly from an Agency Agreement in both purpose and legal structure, though they're often confused because both involve working relationships between companies.
- Employment Status: Secondment keeps the employee's original employment contract intact, while agency agreements create a principal-agent relationship without employment ties
- Duration and Commitment: Secondments are typically temporary arrangements with fixed terms, whereas agency agreements often establish ongoing commercial relationships
- Control and Liability: In secondments, the host company directs daily work but the home employer retains primary employment obligations. Agency agreements give the agent more independence in representing the principal
- Legal Framework: Secondments fall under Dutch employment law and the WAB, while agency agreements are governed by commercial law and agency regulations
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