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A Secondment Agreement lets one company temporarily transfer an employee to work at another organization while keeping their original employment status. In Indonesia, these agreements help businesses share expertise and talent, especially when specialized skills are needed for specific projects or during expansion phases.

Under Indonesian labor law, secondments must protect the worker's rights and benefits from their primary employer while clearly outlining their duties at the host company. The agreement spells out key details like duration, compensation arrangements, supervision responsibilities, and which company handles things like insurance and workplace safety. Many Indonesian companies use secondments to strengthen partnerships and develop their workforce.

Use a Secondment Agreement when your company needs to temporarily send employees to work at another organization or receive workers from a partner company. This often happens during joint ventures, tech implementations, or when sharing specialized expertise across Indonesian business groups. It's particularly valuable for multinational companies operating in Indonesia who need to transfer skills while maintaining clear employment relationships.

The agreement becomes essential when projects require specific technical knowledge, during company restructuring, or for leadership development programs. Indonesian labor regulations require formal documentation of such arrangements to protect worker rights and benefits. Having this agreement in place prevents misunderstandings about reporting lines, compensation, and workplace responsibilities between all parties involved.

• Short-term Secondments: Used for specific projects or technical implementations lasting under 6 months, with clear start and end dates
• Cross-border Secondments: Specially structured for international assignments within ASEAN, following Indonesian immigration and labor requirements
• Group Company Secondments: Common within Indonesian business groups, focusing on skills transfer between affiliated companies
• Development Secondments: Used for leadership training and career development, typically including detailed learning objectives
• Project-based Secondments: Tailored for joint ventures or specific initiatives, with clear deliverables and performance metrics

• Home Company (Primary Employer): Initiates the secondment and maintains the original employment relationship, handling base salary and core benefits
• Host Company: Receives the seconded employee, provides day-to-day direction, and covers operational costs during the secondment period
• Seconded Employee: The professional temporarily transferred between organizations while maintaining their primary employment status
• HR Departments: Coordinate between both companies to manage practical arrangements and ensure compliance with Indonesian labor laws
• Legal Teams: Draft and review agreements to protect all parties' interests and ensure alignment with local regulations

• Employee Details: Gather complete information about the seconded employee's current role, salary, and benefits package
• Duration Planning: Determine exact start and end dates, including any potential extension options
• Role Definition: Document specific duties, reporting lines, and performance metrics at the host company
• Cost Allocation: Clarify how salary, benefits, and expenses will be split between home and host companies
• Legal Requirements: Check Indonesian labor regulations for mandatory provisions and compliance needs
• Document Generation: Use our platform to create a compliant agreement that includes all required elements and protects all parties

• Party Details: Full legal names and addresses of home company, host company, and seconded employee
• Duration Terms: Specific start and end dates, extension conditions, and early termination provisions
• Role Description: Detailed scope of work, reporting structure, and performance expectations
• Compensation Structure: Clear breakdown of salary, benefits, and which company pays what
• Legal Compliance: References to relevant Indonesian labor laws and regulations
• Confidentiality: Protection of both companies' sensitive information and trade secrets
• Dispute Resolution: Process for handling disagreements under Indonesian jurisdiction
• Return Provisions: Terms for employee's return to home company after secondment ends

A Secondment Agreement differs significantly from an Agency Agreement. While both involve one party working for another, their legal structures and purposes are quite distinct in Indonesian business law.

• Employment Relationship: Secondment maintains the original employment relationship with the home company, while agency creates a principal-agent relationship without employment ties
• Duration and Purpose: Secondments are typically temporary arrangements for specific projects or skill transfers, whereas agency agreements often establish ongoing business relationships
• Legal Obligations: In secondments, the home company retains primary employer responsibilities under Indonesian labor law. Agency agreements distribute liability differently, with the agent acting more independently
• Compensation Structure: Seconded employees usually maintain their original salary structure, while agents typically earn commissions or fees based on performance