A Secondment Agreement is a legal document which is created between two parties, when the later needs to second some employees of the former organization due to an urgent need or a project.
This agreement between the two organizations lets them exchange employees between themselves either on a project basis or for a short duration of time, as per their need. In the contents of the legal document, the first party, which is the company lending out the employees is known the company and the second party who is seconding the employees is known as the secondee.
The legal contract includes important details such as when the secondment agreement will come into effect, for how long will be it in effect, how many employees will be seconded, the total duration of the secondment among other important details.
When Do You Need a Secondment Agreement?
A Secondment Agreement may come into use in a couple of possible scenarios, for example if the Secondee deems a larger team for the completion of a project and therefore requests another organization to send them some additional employees, to promote cross corporate culture among employees, to exchange employees based on skill sets and to encourage them to grow their skill sets by working in a different office setup for some time.
The important aspect to note about employee secondment agreement is the fact that it doesn’t completely transfer the employees of one organization to another, but rather does so only for a short while in order to promote growth in skill-sets and cross corporate cultures.
Inclusions in Secondment Agreement
- Parties Involved: In most of these agreements, there are two parties involved. The first party is the organization who is lending out the employees, also known as The Company and the second party is known as The Secondee, who is borrowing the employees for some time.
- Effective Dates: This agreement mentions important dates such as from when this agreement will come into effect, until when it will be valid along with the total duration of enforcement of this contract.
- Where does it Apply: This contract is legally binding within the premises of the state, country or city it was originally filed.
How to Draft a Secondment Agreement
Kindly follow the below mentioned steps to draw a secondment agreement template:
- Arrange a meeting between both the organizations that have decided to exchange employees between them. Discuss upon the terms and conditions of the transfer and how the overall process will be organized.
- Once the terms and conditions and all other finer details have been discussed, reach out to a legal team and ask them to draft a Factory Building Agreement for your organization.
- Cross verify and check all the details with both organizations, after which the signatures from both the stakeholders are collected.
Benefits of Secondment Agreement
The benefits of having an agreement are many. Mentioned below are the most significant ones.
The contract is a legal proof that a transaction has taken place between the said organizations and therefore if ever required, the same can be produced at a court to act as documented proof.
The contract clearly mentions the terms and conditions of the exchange, the dates from which it will come into effect and also the total duration of the exchange, so that both parties are clearly aware of all the details.
In the absence of this legal agreement, both parties stand to lose if the matter is ever taken in court due to lapse in terms or in specifications mentioned.
Key Terms & Clauses in a Secondment Agreement
- Disclaimers: Before such a contract can be issued, there are certain disclaimers that both the stakeholders have to produce and this section outlines the details of the same.
- Notices: Certain notices need to be served before, after and during the exchange taking place and this section contains details of the same.
- Remedies: In case of a default in payment from either party, or a lapse in terms and conditions certain remedies need to be issued and this section of the contract outlines the details of the same.
- Obligations: Both the stakeholders have certain obligations to each other and this section contains the details of the same.
[Also Read: Employment Agreement]
Sample Secondment Agreement
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