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A Secondment Agreement sets out the terms when one company temporarily loans an employee to work at another organization. These arrangements are common in Hong Kong's financial sector, particularly among banks, law firms, and multinational companies looking to share expertise or support special projects.

The agreement covers key details like work duties, reporting lines, salary arrangements, and which employer handles things like MPF contributions and insurance. It also spells out how long the secondment will last and what happens when it ends. Under Hong Kong employment law, the original employer typically maintains the primary employment relationship, while the host company supervises day-to-day work.

Use a Secondment Agreement when sending employees to work temporarily at another company or receiving staff from business partners. This happens often in Hong Kong's banking sector when specialists assist with system upgrades, or when law firms place lawyers with clients during major transactions or compliance projects.

The agreement becomes essential before any staff transfer begins, especially for regulated industries where clear reporting lines matter. It helps prevent employment disputes by defining who handles MPF contributions, insurance, and daily supervision. Many companies also use secondments for leadership development, letting promising managers gain experience in different business environments while maintaining their original employment terms.

• Short-term project secondments: Used for specific initiatives like system implementations or merger integrations, typically lasting 3-12 months with clear deliverables
• Professional development secondments: Common in Hong Kong's financial sector for talent development, usually 1-2 years with structured learning objectives
• Inter-group secondments: Used within company groups to share expertise while maintaining employment benefits and continuity
• Client-facing secondments: Popular among professional services firms, especially when placing staff at client sites for extended projects
• Cross-border secondments: Include additional provisions for visa requirements, tax implications, and compliance with both jurisdictions' employment laws

• Home Company (Original Employer): Maintains the primary employment relationship, handles payroll, benefits, and overall career development
• Host Company: Provides day-to-day work direction, office space, and specific project assignments during the secondment
• Seconded Employee: The staff member who temporarily works at the host company while keeping their original employment terms
• HR Departments: Coordinate between both companies on practical arrangements, policy alignment, and administrative matters
• Legal Teams: Draft and review agreements to ensure compliance with Hong Kong employment laws and protect both companies' interests

• Basic Details: Confirm duration, start date, work location, and reporting lines for the secondment arrangement
• Compensation Structure: Determine who pays salary, bonuses, MPF contributions, and handles expense claims
• Job Scope: Document specific roles, responsibilities, and performance measures at the host company
• Employment Terms: Review existing employment contract to ensure alignment with secondment terms
• Insurance Coverage: Check both companies' liability insurance and workers' compensation policies
• Return Arrangements: Specify conditions for early termination and role upon return to home company

• Parties and Roles: Clear identification of home company, host company, and seconded employee
• Duration Terms: Specific start date, end date, and extension/early termination provisions
• Employment Status: Confirmation that original employment continues with home company
• Duties and Reporting: Detailed scope of work and supervision structure at host company
• Compensation Details: Salary arrangements, benefits, MPF contributions, and expense policies
• Confidentiality: Protection of both companies' sensitive information
• Return Provisions: Guaranteed position and terms upon secondment completion
• Governing Law: Explicit reference to Hong Kong law and jurisdiction

A Secondment Agreement differs significantly from an Agency Agreement, though both involve one party working for another. Here are the key distinctions:

• Employment Relationship: Secondment maintains the original employment contract while temporarily placing staff with another company. Agency creates a principal-agent relationship without direct employment
• Duration and Purpose: Secondments are typically fixed-term arrangements for specific projects or development. Agency relationships often continue indefinitely for ongoing business representation
• Control and Liability: Seconded employees work under host company supervision but remain employed by their original employer. Agents work independently while representing their principal
• Benefits and Compensation: Seconded staff keep their original employment benefits and MPF arrangements. Agents usually handle their own benefits and MPF as independent contractors