Secondment Leave Explained: Definition, Terms and How It Works

Secondment leave is the temporary transfer of an employee from their usual employer to another organisation, department or role for a defined period. Unlike resignation or redundancy, secondment preserves the employee’s original employment relationship, meaning they remain on their original employer’s payroll and retain their employment rights. Secondments are used for a variety of purposes, including employee development, inter-organisational collaboration, project-based assignments and international placements. The arrangement is governed by a secondment agreement that sets out the terms, duration, pay arrangements and responsibilities of all parties.

Key Takeaways

• Secondment is a temporary transfer that preserves the employee’s original employment relationship
• The arrangement is governed by a three-way agreement between the employee, the original employer and the host organisation
• Secondments typically last between three and 24 months and include provisions for the employee’s return

What Is Secondment?

Secondment is a formal arrangement in which an employee is temporarily assigned to work in a different organisation, department or role while remaining employed by their original employer. The employee’s original employment contract remains in force, and they are expected to return to their original role (or a suitable alternative) at the end of the secondment period.

The secondment is typically governed by a secondment agreement, which is a contract between three parties: the employee, the original employer (the “lending” organisation) and the host organisation. The agreement sets out the duration of the secondment, the role to be performed, the reporting arrangements, pay and benefits during the secondment, and the employee’s rights upon return.

Secondments differ from several related concepts. A secondment is not a transfer of employment — the employee does not become an employee of the host organisation. It is not a secondment if the employee’s original employment is terminated and they are re-engaged by a new employer. It is not a temporary assignment within the same organisation (which would be a secondment internally, but the term is more commonly used for inter-organisational moves).

The duration of a secondment varies. Short-term secondments may last a few weeks or months, while longer-term secondments may extend to one or two years. The most common duration is between six and 18 months. At the end of the secondment, the employee returns to their original employer, ideally to a role that reflects the skills and experience gained during the assignment.

How Does Secondment Work?

Terms of the Secondment Agreement

The secondment agreement is the foundational document. It should address the following key terms:

• Duration — the start and end dates of the secondment, and any provisions for extension or early termination
• Role — the position to be performed at the host organisation, including responsibilities and reporting lines
• Pay and benefits — who pays the employee’s salary during the secondment, and what benefits continue
• Expenses — who covers relocation, travel and other expenses
• Intellectual property — ownership of any work product created during the secondment
• Confidentiality — obligations regarding the host organisation’s confidential information
• Return arrangements — what role the employee will return to and on what terms
• Termination — the circumstances under which the secondment can be ended early

During the Secondment

During the secondment, the employee performs their role at the host organisation while remaining on the original employer’s payroll. The employee should be managed on a day-to-day basis by the host organisation, but the original employer retains overall responsibility for the employment relationship. The employee should continue to accrue benefits such as annual leave and pension contributions, and the original employer should maintain regular contact.

Return from Secondment

At the end of the secondment, the employee returns to their original employer. The return should be planned in advance, with a reintegration period that allows the employee to update their skills, share knowledge gained during the secondment and transition back to their original role. The secondment agreement should specify the role the employee will return to, and in some cases, the employee may be promoted or moved to a different role to reflect the experience gained.

Secondment by Country

Country	Legal Framework	Pay	Key Detail
UK	Common law contract principles	Original employer pays	Three-party agreement required
AU	Fair Work Act and enterprise agreements	Original employer pays	Public sector secondments well-established
US	No specific legislation	As agreed	Governed by contract terms

How to Request a Secondment

1. Identify the opportunity — discuss the secondment with your manager or HR to explore whether it aligns with your career development and the organisation’s needs.
2. Propose the arrangement — if the secondment is initiated by you, approach the host organisation and original employer with a proposal.
3. Negotiate terms — work with all parties to agree on the terms of the secondment agreement.
4. Review the agreement — seek legal advice if necessary to ensure the agreement protects your interests.
5. Plan for your return — discuss with your original employer what role you will return to and how the experience will be recognised.

Employer Obligations for Secondment

• Maintain the employment relationship — the original employer retains responsibility for the employee’s employment rights and benefits
• Ensure a robust secondment agreement — the agreement should address all key terms to avoid disputes
• Support the employee — maintain regular contact with the employee during the secondment and provide support as needed
• Plan for the return — ensure that a suitable role is available upon the employee’s return
• Comply with tax and employment law — ensure that the secondment arrangements comply with applicable tax and employment legislation

Common Mistakes

• Failing to put the secondment in writing, leading to disputes about terms and expectations
• Not maintaining the employee’s benefits and entitlements during the secondment
• Treating the secondment as a permanent transfer, which can create tax and employment law complications
• Failing to plan for the employee’s return, leaving them without a suitable role at the end of the secondment
• Not considering the tax implications of the secondment, particularly for international assignments

FAQ

What is a secondment?

A secondment is the temporary transfer of an employee to another organisation, department or role while remaining employed by their original employer. It is governed by a secondment agreement and typically lasts between three and 24 months.

Is secondment a new job?

No. A secondment is a temporary assignment, not a new job. The employee remains employed by their original employer and is expected to return at the end of the secondment period. The original employment contract remains in force.

Who pays the employee during a secondment?

Typically, the original employer continues to pay the employee’s salary during the secondment. The host organisation may reimburse the original employer for some or all of the costs, depending on the terms of the secondment agreement.

Do I accrue annual leave during a secondment?

Yes. As the employee remains employed by the original employer, they should continue to accrue annual leave, pension contributions and other statutory benefits during the secondment. The secondment agreement should address how annual leave is managed during the assignment.