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A Secondment Agreement sets up the temporary transfer of an employee from their regular company to another organization, while keeping their original employment contract active. Under Austrian labor law, this arrangement helps businesses share expertise and talent without creating new employment relationships.

The agreement carefully outlines who controls the employee's work, handles their pay, and bears liability during the secondment period. It must comply with Austria's Employee Assignment Act (AÜG) and social security regulations, especially when the secondment crosses borders within the EU. Companies often use these agreements for project work, training programs, or to strengthen business partnerships.

Use a Secondment Agreement when your company needs to temporarily send employees to work at another organization while maintaining their original employment relationship. This happens commonly during joint ventures, specialized projects, or when sharing technical expertise between Austrian companies or EU partners.

These agreements prove especially valuable when setting up knowledge transfer programs, filling temporary skill gaps, or managing cross-border assignments within the EU. The agreement protects both employers by clearly defining work supervision, salary responsibilities, and liability issues under Austrian labor law. It also ensures compliance with social security regulations and helps prevent unintended employment relationships from forming.

• Internal Secondment: Used when transferring employees between departments or subsidiaries within the same Austrian company group, focusing on skill development and resource optimization
• Cross-Border Secondment: Addresses EU-specific requirements for temporary assignments between Austrian and other EU companies, including social security and tax considerations
• Project-Based Secondment: Tailored for specific project durations, with clear milestones and deliverables defined under Austrian labor law
• Training Secondment: Structured for knowledge transfer and professional development, often used in technical or specialized sectors
• Emergency Coverage Secondment: Designed for temporary staff replacements during unexpected absences or urgent operational needs

• Home Company (Original Employer): Initiates the Secondment Agreement and maintains the primary employment relationship with the employee
• Host Company: Receives the seconded employee and provides day-to-day work direction during the assignment period
• Seconded Employee: The professional temporarily transferred while maintaining their original employment contract
• HR Departments: Manage implementation, ensure compliance with Austrian labor laws, and coordinate between both organizations
• Legal Counsel: Reviews and drafts agreements to ensure compliance with Austrian employment regulations and EU directives

• Employee Details: Gather full employment information, including current role, salary, and benefits that will continue during secondment
• Assignment Specifics: Define duration, new role responsibilities, and reporting structure at the host company
• Cost Allocation: Document how salary, benefits, and expenses will be shared between home and host companies
• Working Conditions: Specify working hours, location, and any special arrangements under Austrian labor law
• Legal Compliance: Ensure alignment with Austrian social security regulations and EU posting requirements
• Document Generation: Use our platform to create a legally sound agreement that includes all mandatory elements

• Party Information: Full legal names and addresses of home company, host company, and seconded employee
• Assignment Details: Specific duration, location, and role description aligned with Austrian employment law
• Remuneration Structure: Clear breakdown of salary, benefits, and which company handles payments
• Working Conditions: Hours, reporting lines, and compliance with Austrian working time regulations
• Data Protection: GDPR-compliant provisions for handling personal information
• Termination Terms: Conditions for early termination and return to home company
• Governing Law: Explicit reference to Austrian law and jurisdiction for dispute resolution

A Secondment Agreement differs significantly from an Assignment Agreement in both purpose and legal structure under Austrian law. While both involve moving personnel or responsibilities, they serve distinct business needs and carry different legal implications.

• Employment Relationship: Secondment maintains the original employment contract while temporarily placing the employee with another organization; Assignment typically transfers responsibilities or rights permanently
• Duration and Reversibility: Secondments are inherently temporary with a clear return path to the original employer; Assignments usually represent permanent transfers
• Legal Obligations: In secondments, the home company retains primary employer obligations under Austrian labor law; Assignments typically shift all obligations to the new entity
• Social Security Impact: Seconded employees usually maintain their original social security arrangements; Assigned employees often require new social security registrations