Employee Secondment – Do It Correctly and in Compliance with the Law

Flexibility in team management is the key to success. Companies are increasingly faced with the need to temporarily relocate employees or assign them to support business partners. This process, known as employee secondment, is a powerful strategic tool; however, it requires a precise legal and organisational approach. Improper execution of this procedure may result not only in conflicts with staff, but also in serious sanctions.

What Is Employee Secondment?

At the outset, it is essential to distinguish secondment from a business trip. Although both concepts involve work outside the permanent place of employment, employee secondment entails a temporary, formalised change to the terms of the employment contract. It requires the conclusion of an addendum to the contract or a separate agreement, clearly defining the new period, place of work and, crucially, the terms of remuneration — which must be no less favourable than the previous ones.

For the organisation, this is an opportunity to make more effective use of resources during peak workload periods at contractors or when implementing projects in other divisions. From the employee's perspective, it is an opportunity to acquire new competencies in a different professional environment.

Secondment to Another Employer – The Outsourcing Model

The modern labour market has developed a model in which employees are seconded to another employer. This procedure is frequently applied within the framework of so-called staff leasing or process outsourcing. In this scenario, the primary employer concludes an agreement with another entity, under which the employee performs their duties under the direction of the new company. This solution is extremely beneficial for companies facing acute staff shortages or requiring highly qualified specialists for a specific assignment.

The following formalities must be observed:

• The employee's consent must be provided in writing.
• The primary employer grants the employee unpaid leave for the duration of the secondment to the other employer; during this period, the employee enters into an employment relationship with the receiving entity.
• All matters relating to health and safety and induction training are the responsibility of the receiving employer.

How to Avoid Secondment? The Perspective of Employer and Employee

Many managers ask: how can secondment be avoided if it risks challenge by regulatory authorities or resistance from the team? The answer lies in precise communication and process planning. An employer may avoid legal issues associated with secondment by applying instead the institution of "assignment of different work" for a period not exceeding 3 months per calendar year, provided this is justified by the company's needs and does not result in a reduction of remuneration. If, however, the change is to last longer or involves a different location, secondment becomes a necessity.

Employees, on the other hand, often wonder how to avoid secondment if it conflicts with their personal lives. It is worth knowing that certain protected categories of individuals cannot be seconded outside their permanent place of work without their explicit consent. This applies, in particular, to pregnant women and parents caring for a child under the age of 8. In other cases, refusal to comply with a service instruction regarding secondment (if it is lawful and consistent with the contract) may be deemed a breach of employment obligations.

Key Elements of an Effective Secondment Process

To ensure the process runs smoothly, it is advisable to implement standards akin to professional onboarding:

1. Prior to dispatching the employee, it is necessary to examine the impact on deductible costs and tax settlements. Flat-rate travel allowances and daily subsistence rates must be carefully calculated to avoid errors on the payroll.
2. The person seconded to the new structure should receive support in the form of a designated mentor who will assist them in acclimatising to the new environment.
3. The employee must have a clear understanding of their reporting line and the tasks they are to perform at the receiving employer.
4. If the secondment involves relocation, the company should arrange accommodation and reimburse travel costs, which can be documented using periodic tickets for tax optimisation purposes.

Potential Risks and How to Mitigate Them

Insufficient attention to detail in the secondment process may lead to high staff turnover. If an employee feels "pushed out" to another company without adequate preparation, their productivity will drop sharply. Furthermore, errors in VAT settlements when invoicing secondment services between companies may result in sanctions under the split payment mechanism.

Employeesecondment is a process that, when properly prepared, benefits all three parties: the primary employer (cost optimisation), the receiving employer (access to personnel) and the employee themselves (professional development). The key to success lies in strict adherence to the law, a commitment to transparent communication, and professional support from HR experts.