Whether a seconded employee is continuing to be employed by his or her 'parent' organisation or whether during the period of secondment a contract of employment is established between the employee and the temporary employer will depend on the facts of the arrangement. It will, therefore, be unsafe to conclude, just because the parties describe the arrangement as a secondment, that the employee's contract of employment remains throughout with the seconding organisation.
The terms of the secondment agreement should therefore make clear the following points:
- Remuneration and other contractual financial benefits, together with PAYE and national insurance contributions, will continue to be paid by the seconding organisation throughout the period of secondment.
- Any payments, including fees, to be made by the receiving organisation to the seconding organisation in respect of the secondment.
- That the secondment is for a specified period, which may or may not be extended for a further specified period by agreement between the three parties.
- The reason and purpose of the secondment, and the intentions of the parties with regard to it.
- Who will be entitled to any fees, etc, which the employee may earn from other sources during the period of secondment.
- Whether or not the employee will be expected or required to do any work for the seconding organisation during the period of secondment.
- The respective rights of the seconding and the receiving organisations to terminate the secondment during its period.
- The position which will obtain if the employee decides to terminate the secondment.
- The duties expected of the employee during the period of secondment, and who will control the performance of these.
- The contractual position of the employee throughout the period of secondment, and in particular what this will be when the secondment ends, or the secondment finishes earlier than originally expected.
Originator: C Clements