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Secondment Agreement
I need a secondment agreement for an employee who will be temporarily transferred to our partner company in Germany for a period of 12 months. The agreement should include details on the employee's role, reporting structure, salary adjustments, and provisions for return to the original position in Switzerland.
What is a Secondment Agreement?
A Secondment Agreement lets one company temporarily assign their employee to work at another organization while keeping their original employment contract active. Under Swiss labor law, this three-way arrangement maintains the worker's primary employment rights and benefits while they contribute their expertise to the host company.
The agreement spells out key details like work duties, duration, confidentiality rules, and which company handles salary payments and insurance coverage. It's particularly common in Swiss banking, pharmaceuticals, and consulting firms when specialized talent needs to be shared across organizations. Unlike temporary staffing contracts, secondments preserve the employee's connection to their home employer.
When should you use a Secondment Agreement?
Use a Secondment Agreement when your organization needs to temporarily share skilled employees with another Swiss company while protecting everyone's interests. This works especially well for specialized projects requiring specific expertise, like IT implementations, regulatory compliance work, or management consulting assignments.
The agreement becomes essential when sending staff to client sites, launching joint ventures, or providing technical training to partner organizations. Swiss labor laws require clear documentation of these arrangements to maintain proper employment relationships, social security coverage, and workplace insurance. Having this agreement in place prevents misunderstandings about supervision, confidentiality, and intellectual property rights.
What are the different types of Secondment Agreement?
- Standard Inter-Company: Most common type of Secondment Agreement, used when sending employees between Swiss companies, covering basic work duties, compensation, and liability terms
- International Assignment: Specialized version for cross-border secondments, addressing Swiss immigration requirements, social security coordination, and tax implications
- Project-Based: Focused on specific deliverables with defined timelines, often used in consulting or IT sectors
- Training Secondment: Structured for knowledge transfer scenarios, detailing learning objectives and mentorship arrangements
- Group Company: Tailored for transfers within corporate groups, addressing shared resources and intellectual property concerns
Who should typically use a Secondment Agreement?
- Home Company (Original Employer): Maintains the primary employment contract, continues paying salary and benefits, and retains ultimate responsibility for the employee
- Host Company: Receives the seconded employee, provides day-to-day supervision, and covers operational costs during the secondment period
- Seconded Employee: Works temporarily at the host company while maintaining employment ties with their original employer
- HR Departments: Coordinate between both companies to manage practical arrangements and ensure compliance with Swiss labor laws
- Legal Teams: Draft and review agreements to protect both companies' interests and ensure alignment with Swiss employment regulations
How do you write a Secondment Agreement?
- Basic Details: Gather employee information, duration of secondment, and both companies' registration details
- Work Scope: Define specific role, responsibilities, reporting lines, and performance metrics at host company
- Compensation Structure: Clarify who pays salary, bonuses, expenses, and Swiss social security contributions
- Legal Requirements: Check Swiss work permit needs, social insurance obligations, and tax implications
- Practical Arrangements: Document working hours, location, equipment provision, and confidentiality requirements
- Review Process: Use our platform to generate a compliant agreement, then have all parties review 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
- Duration Terms: Clear start and end dates, extension conditions, and early termination provisions
- Employment Status: Confirmation of continued employment with home company under Swiss labor law
- Work Arrangements: Detailed description of role, location, reporting structure, and performance evaluation
- Financial Terms: Salary arrangements, expenses, benefits, and social security contributions
- Confidentiality: Data protection measures and intellectual property rights
- Governing Law: Explicit reference to Swiss law and jurisdiction for dispute resolution
What's the difference between a Secondment Agreement and a Contractor Agreement?
A Secondment Agreement differs significantly from a Contractor Agreement in several key aspects under Swiss law. While both involve providing services to another organization, their legal structures and implications are quite different.
- Employment Relationship: Secondment maintains the original employment contract, while contractors are independent service providers
- Social Security: Seconded employees keep their benefits and social insurance through their home employer; contractors manage their own social security obligations
- Management Control: In secondments, the host company gains day-to-day supervision while the home company retains ultimate employment authority; contractors work independently
- Duration and Integration: Secondments are typically temporary with deeper integration into the host company; contractor relationships are more distant and can be ongoing
- Tax Treatment: Seconded employees' income tax remains straightforward through their primary employer; contractors handle their own tax arrangements as self-employed individuals
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