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A Secondment Agreement sets out the terms when one company temporarily loans an employee to another organization while maintaining the original employment relationship. In India, these arrangements help businesses share expertise and manage workforce needs without creating new employment contracts.

The agreement covers key aspects like work duties, compensation, confidentiality, and the seconded employee's return to their primary employer. It's particularly common in IT, consulting, and multinational companies operating in India, where it must comply with labor laws and maintain clear distinctions from third-party staffing contracts under the Contract Labour Act.

Use a Secondment Agreement when your company needs to temporarily transfer skilled employees to another organization while keeping them on your payroll. This arrangement works perfectly for specialized projects, knowledge sharing, or filling temporary skill gaps—especially common in India's IT and consulting sectors.

The agreement becomes essential when managing cross-border talent transfers within multinational companies or during joint ventures. It helps protect intellectual property, maintains clear reporting structures, and ensures compliance with Indian labor laws. Many companies use secondments for leadership development, helping promising managers gain experience in partner organizations while preserving their employment benefits.

• Employee Relocation Agreement: Used for domestic transfers within India, with detailed terms for temporary location changes and compensation adjustments
• Cross-Border Secondments: Tailored for international assignments, addressing visa requirements and overseas compliance
• Project-Based Secondments: Structured around specific project timelines with clear deliverables and skill transfer objectives
• Group Secondments: Designed for moving multiple employees simultaneously, often used in joint ventures or large-scale collaborations
• Training Secondments: Focused on skill development and knowledge transfer, common in technical or specialized sectors

• Primary Employer: The organization that originally employs and continues to pay the seconded employee, maintains employment records, and holds responsibility for benefits
• Host Organization: The company receiving the seconded employee, provides day-to-day work direction, and ensures suitable working conditions
• Seconded Employee: The professional temporarily transferred, who must follow both employers' policies while maintaining confidentiality
• HR Managers: Coordinate between both organizations, handle documentation, and ensure compliance with Indian labor laws
• Legal Teams: Draft and review Secondment Agreements to protect both organizations' interests and ensure regulatory compliance

• Employee Details: Collect complete information about job role, current salary, benefits, and any special arrangements that need to continue
• Duration Planning: Define exact start and end dates, including any extension options or early termination conditions
• Role Specifics: Document new responsibilities, reporting structure, and performance evaluation methods at the host organization
• Cost Allocation: Clarify which organization pays for salary, benefits, travel, and other expenses during the secondment
• Compliance Check: Review Indian labor laws and tax implications before finalizing terms
• Document Generation: Use our platform to create a legally sound agreement that includes all required elements and minimizes drafting errors

• Parties and Roles: Clear identification of primary employer, host organization, and seconded employee with their respective obligations
• Duration Terms: Specific start date, end date, notice periods, and conditions for early termination or extension
• Employment Status: Confirmation that original employment continues, plus reporting relationships in both organizations
• Compensation Structure: Detailed breakdown of salary, benefits, expenses, and which organization handles each payment
• Confidentiality: Protection of both organizations' intellectual property and sensitive information
• Governing Law: Clear statement that the agreement follows Indian labor laws and jurisdiction
• Return Provisions: Terms for employee's return to original position or role after secondment ends

A Secondment Agreement differs significantly from an Agency Agreement, though both involve one party performing work for another. Let's explore their key differences:

• Employment Relationship: In a secondment, the employee maintains their original employment contract while temporarily working elsewhere. An agency agreement creates a principal-agent relationship without employment ties
• Control and Liability: Seconded employees work under the host organization's daily supervision while remaining employed by their original company. Agents work independently, making decisions on behalf of the principal
• Duration and Purpose: Secondments are typically time-bound arrangements for skill sharing or project completion. Agency agreements often have ongoing terms for business representation
• Legal Framework: Secondments fall under Indian employment law and require careful structuring of dual-organization responsibilities. Agency agreements operate under commercial law with clearer principal-agent obligations