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A Secondment Agreement lets companies temporarily transfer employees to work at partner organizations while keeping their original employment relationship intact. In the Philippines, these arrangements help businesses share expertise, handle special projects, or support affiliate companies without creating new employment contracts.

Under Philippine labor laws, the agreement must clearly outline key details like duration, compensation structure, and which company handles benefits and social security contributions. It protects both employers by defining responsibilities and ensures the seconded employee maintains their rights while working at the host organization.

Use a Secondment Agreement when sending skilled employees to work temporarily at partner companies or receiving external expertise for special projects in the Philippines. This arrangement works perfectly for technical knowledge transfer, managing group-wide initiatives, or helping newly established subsidiaries get up to speed with experienced staff support.

The agreement becomes essential when coordinating cross-border assignments within ASEAN regions, implementing joint ventures, or during corporate restructuring. It helps maintain clear employment relationships, protect intellectual property, and ensure compliance with Philippine labor laws while your team members contribute their expertise at different locations.

• Project-Based Secondment: Common in IT and construction sectors, these agreements focus on specific deliverables and typically last 3-12 months
• Inter-Company Transfer: Used within corporate groups in the Philippines, maintaining employment with the parent while working at subsidiaries
• Skills Transfer Secondment: Popular in manufacturing and tech sectors, designed to facilitate knowledge sharing and training
• Fixed-Term Assignment: Structured for precise durations with clear start and end dates, often used for leadership roles
• Development Secondment: Focuses on employee growth and training, common in multinational companies operating in the Philippines

• Home Company (Seconding Employer): Maintains the primary employment relationship and continues managing benefits, career development, and main contractual obligations
• Host Company: Provides day-to-day work direction and covers operational costs during the secondment period
• Seconded Employee: The professional temporarily assigned to work at the host company while remaining employed by their original employer
• HR Managers: Coordinate between both organizations to ensure proper implementation of the Secondment Agreement
• Legal Counsel: Reviews and drafts agreements to ensure compliance with Philippine labor laws and protect both companies' interests

• Basic Details: Gather employee information, duration of secondment, and specific role at host company
• Compensation Structure: Determine which company handles salary, benefits, and additional allowances
• Reporting Lines: Define clear supervisory relationships and performance evaluation procedures
• Legal Requirements: Check Philippine labor laws on social security, healthcare, and tax obligations
• Work Arrangements: Document working hours, leave policies, and office location details
• Termination Terms: Outline conditions for early termination and return procedures
• Document Review: Use our platform to generate a complete, legally-sound agreement that includes all required elements

• Parties and Roles: Full legal names and addresses of home company, host company, and seconded employee
• Duration Terms: Clear start and end dates, extension provisions, and early termination conditions
• Work Scope: Detailed job description, reporting relationships, and performance standards
• Compensation Details: Salary structure, benefits continuation, and additional allowances
• Legal Compliance: References to Philippine Labor Code requirements and social security obligations
• Confidentiality: Protection of trade secrets and intellectual property for both companies
• Dispute Resolution: Clear procedures for handling conflicts under Philippine jurisdiction

A Secondment Agreement differs significantly from an Agency Agreement in several key aspects, though both involve one party performing work for another. Understanding these differences is crucial for Philippine businesses to choose the right arrangement.

• Employment Relationship: In a secondment, the employee maintains their original employment contract and benefits, while an agency agreement creates a principal-agent relationship without employment ties
• Duration and Purpose: Secondments are typically temporary arrangements for specific projects or skill transfers, while agency agreements often establish ongoing business relationships
• Control and Liability: Seconded employees work under the host company's daily supervision but remain employed by their original employer; agents act independently with more autonomy
• Legal Obligations: Secondment agreements must comply with Philippine labor laws and maintain employee benefits, while agency agreements focus on commercial terms and representation rights