Sometimes employers agree to temporarily loan an employee. These types of arrangements are called secondments. The types of scenarios these arrangements can take, include:
- Intra-company where an employee works in a different department for a certain amount of time. These agreements are usually informal and are relatively straightforward with little prospect of legal issues arising.
- Intra-group where the employee works for another employer in the same group of companies. Employers need to make sure, as with intra-company secondments that they have catered for this possibility in contracts of employment. The terms are usually easier to agree when the seconding and host employers are related undertakings.
- External secondment where an employee works for an external employer, such as a client or customer of his normal employer. It is crucial that these types of secondments have a formal written agreement signed and discussed by both parties to accommodate the arrangement. Where this is not the case legal complexities can quickly arise, especially when the seconding and host employers have divergent commercial interests.
There are many benefits to secondments due to their temporary nature. However, as with all things there are also disadvantages to the arrangements, and legal issues or complexities can arise very quickly particularly if they are not conducted on a formal basis. For specific guidance on secondments and things to be mindful of if you are an employer or employee, see our free useful secondments section found here.
If you want advice relating to secondments or any aspect of HR and employment law contact us on 0114 303 2300, or email firstname.lastname@example.org or visit our website at www.bhayanilaw.co.uk.