Secondment offers a flexible way for businesses to fill short-term roles while giving employees valuable opportunities to develop skills and broaden their experience. Through temporary transfers, companies can address staffing needs efficiently and foster career growth for their teams. This guide covers the main benefits of secondments, explores the types of secondment arrangements, and highlights key elements for structuring effective secondment contracts.

A quick guide to secondment

Secondment is a temporary transfer where an employee works in a different role, department or organisation. It allows employees to gain new skills, broaden networks and advance their careers. For employers, secondments fill short-term staffing needs and foster growth. Secondments are increasingly popular, offering practical and career-enhancing solutions for both parties.

What is secondment and why is it valuable?

Secondment is a temporary transfer that allows an employee to work in a different role or department within their current organisation. In some cases, it may involve working for an entirely different organisation. Secondments offer employees the chance to gain new skills and experiences in a different work environment. They also help organisations address short-term staffing needs by shifting talent to where it’s needed most.

The rising trend of secondment

With more organisations seeking flexible workforce options, secondments are becoming increasingly popular in Australia. Many companies now see secondments as a way to provide career development opportunities while meeting their own staffing demands. Secondment agreements outline each party’s roles and responsibilities, ensuring that the terms are clear and fair for everyone involved. As secondments continue to grow in popularity, they present a valuable tool for both individual and organisational growth.

Benefits of secondment for employees and employers

Secondments offer unique benefits for both employees and employers. Secondments can serve as a powerful career tool for employees, allowing them to expand their skill sets and network. For employers, secondments offer practical staffing solutions and the chance to boost team morale and efficiency. Here’s a closer look at the benefits each party can gain from a well-structured secondment.

For employees

Secondments provide valuable career growth opportunities. By working in a different role or even a different organisation, employees can:

• Gain hands-on learning: Secondments allow employees to learn directly through experience. They may develop new skills that they wouldn’t gain in their current position, like project management, leadership, or technical skills in a different field.
• Enhance career growth: Working in diverse environments and tackling new challenges can give employees a broader skill base and build their confidence. These experiences often make them more competitive for future roles.
• Build networks: During a secondment, employees meet new teams and often work with senior colleagues. Building these networks can be invaluable for career progression and may open doors to future opportunities within or outside their current organisation.

For employers

For organisations, secondments can be an effective way to meet staffing needs and support business growth. Secondments can:

• Meet short-term staffing needs: Secondments help employers address immediate gaps without hiring. They can use existing employees in different roles temporarily, which is especially useful for covering parental leave or filling project-specific roles.
• Boost employee morale: Offering secondments shows employees that the organisation values their growth and development. This can increase job satisfaction and help retain top talent.
• Encourage innovation: Employees often bring fresh insights and skills back to their original team after a secondment. This can lead to new ideas and improved processes that benefit the entire organisation.

Comparing benefits

Secondments benefit both parties by providing growth opportunities for employees and practical solutions for employers. This mutual benefit makes secondments a valuable tool for organisations focused on flexibility and employee engagement.

Types of secondments

Secondments can take place within an employee’s current organisation or in an external organisation. Both options offer unique opportunities and benefits, though they serve different needs. Understanding the distinctions between internal and external secondments can help employers and employees choose the arrangement that best fits their goals.

Internal secondment

An internal secondment involves a temporary transfer within the same organisation. Employers often use internal secondments to fill short-term staffing needs or to allow employees to gain experience in different departments. These secondments are common for project-based roles or to cover absences within the company.

Examples of internal secondment:

• Project support: A project manager might join a new product team for six months to provide expertise and leadership.
• Training and development: An employee from marketing may spend time with the product development team to learn about product lifecycle management and build cross-functional skills.

Benefits of internal secondment:

• Skill growth: Employees gain new skills without leaving their organisation, which they can apply directly to their primary role.
• Network building: Internal secondments help employees connect with colleagues across the company, creating a more cohesive team environment.
• Easy transition: Returning to their original role or team after the secondment is usually straightforward.

External secondment

An external secondment involves transferring an employee to a different organisation, often a partner company, client, or even a government agency. External secondments provide an opportunity to gain industry insights and develop skills that may not be available in the employee’s current workplace.

Examples of external secondment:

• Skill sharing: A finance expert may be seconded to a partner company to support a new finance system integration, bringing expertise to the project and gaining new technical skills.
• Cross-industry exposure: An employee in customer service might work temporarily with a client organisation to better understand client needs and expectations.

Benefits of external secondment:

• Broadened experience: Employees work in a new environment, often with different processes, which enhances their adaptability.
• Industry insight: External secondments provide firsthand experience in different sectors, which can be valuable for long-term career growth.
• Enhanced innovation: The seconded employee may return with new ideas or approaches that benefit their original team.

Both types of secondments provide valuable learning and growth opportunities, enhancing career development while meeting organisational goals.

Structuring a secondment contract: Key elements to include

A clear secondment contract ensures employees and employers understand their rights and responsibilities. A well-structured contract sets expectations, protects the interests of both parties and provides a roadmap for a successful secondment. Here are the essential elements to include in any secondment agreement.

Role and responsibilities

Defining the role and responsibilities is crucial in any secondment contract. Clearly outline the employee’s tasks and objectives during the secondment. Specify the expectations for performance, as well as the employee’s duties and reporting structure.

Key points to cover:

• Task list: Describe the specific tasks the employee will perform during the secondment.
• Objectives: Set measurable goals or milestones to guide the secondment.
• Reporting line: Identify who the employee will report to in the host team or organisation, ensuring clarity on who supervises and evaluates performance.

Duration and termination

The contract should specify the duration of the secondment, including start and end dates. If there is a chance of extending the secondment, include a clause that outlines how this will be decided and approved. Also, address any conditions that could lead to early termination, whether due to business needs or performance.

Duration considerations:

• Defined period: State the expected duration of the secondment, such as three, six, or twelve months.
• Extension terms: Clarify if and how the contract may be extended, including mutual agreement by both parties.
• Early termination: List circumstances that allow for early termination and any notice period required for ending the secondment.

Compensation and benefits

Secondment contracts should clearly define compensation and benefits. Specify if the employee will receive a different salary or benefits package during the secondment. Address any adjustments to their health insurance, superannuation and leave entitlements, especially if they are working in a different organisation.

Compensation details:

• Salary adjustments: Note any changes in salary or bonuses during the secondment period.
• Benefits: Outline health, superannuation and leave entitlements the employee retains or gains.
• Reimbursements: Clarify if travel or relocation costs will be covered, especially for external secondments.

Additional clauses

Include clauses on confidentiality, intellectual property rights and other legal constraints to protect both parties. For example, if the employee creates intellectual property during the secondment, the contract should clarify who holds ownership. Confidentiality clauses are especially important when employees work in a new environment with sensitive information.

Essential clauses:

• Confidentiality: Specify the need for confidentiality regarding sensitive company information.
• Intellectual property rights: State who owns any intellectual property created by the employee during the secondment.
• Legal compliance: Ensure the contract meets all relevant employment laws and regulations.

By covering these elements, the secondment contract provides a solid foundation for a successful and legally secure secondment. Both employees and employers benefit from a clear contract that defines terms, roles and expectations.

Using secondments for career development and skill growth

Secondments can be a powerful tool for career development. Employees gain valuable skills and insights that strengthen their careers by taking on new roles in different teams or organisations. Secondments offer a unique chance to step out of a regular role and build new expertise.

Professional growth through diverse roles

Secondments help employees grow by allowing them to work in different roles and settings. This variety of experience enhances skills that may not be used in their current role.

Skills often developed:

• Leadership: Managing new tasks and responsibilities can improve leadership and decision-making skills.
• Project management: Working on short-term projects in a different area often involves managing multiple tasks, timelines and people.
• Adaptability: Moving to a new team or even a new organisation tests an employee’s flexibility and helps them become more adaptable to change.

Secondments encourage continuous learning. Employees gain knowledge that they may not have gained in their original roles, which can lead to better performance when they return.

Building career mobility and opportunities

Career development often depends on exposure to different roles and projects. Secondments allow employees to experience new industries, company cultures and job functions. This experience makes them more competitive for future roles and promotions.

Benefits for career growth:

• Career mobility: Secondments can lead to lateral career moves or promotions. Experience in diverse roles is often valued when applying for higher positions.
• Industry knowledge: Working in a different company or sector gives employees a broader perspective. This helps them understand industry trends, challenges and best practices.
• Networking: Employees on secondment can build connections with colleagues in different departments or industries. These connections may open doors to future roles within the organisation or in a different one.

Improving employee engagement

Secondments show that an organisation values employee growth. When employees have chances to develop their skills, they feel more motivated and engaged.

Engagement benefits:

• Retention: Providing career development options like secondments often leads to higher job satisfaction and loyalty.
• Increased productivity: Employees returning from a secondment often bring fresh insights and skills. This can lead to increased productivity and more efficient processes.
• Enhanced morale: A secondment program shows employees that the organisation cares about their long-term growth. This can create a positive work environment and boost team morale.

Secondments offer a unique path for employees to advance their skills and careers. They benefit both employees and organisations by fostering a culture of growth and learning.

Legal considerations for employers

Employers must address important legal details when arranging a secondment to ensure a smooth process and protect both parties. A well-structured secondment agreement helps clarify responsibilities and prevents misunderstandings. Key legal areas to cover include employment status, liability, confidentiality and intellectual property.

Employment status

Employment status is a fundamental part of any secondment agreement. This section should clarify whether the employee remains under the original employer’s contract or if they will transfer to the host organisation for the duration.

Points to include:

• Original contract terms: If the employee remains with the original employer, state that their employment contract remains active throughout the secondment.
• Host organisation’s role: If the host organisation takes on some responsibility, clarify whether they will oversee daily tasks, performance reviews or other functions.
• Return process: Outline the process for returning to the original role or position, including any conditions or timeframes.

Liability and insurance

Liability and insurance coverage are critical, especially for external secondments. Employers should clearly define who is responsible for liability and work-cover insurance during the secondment.

Liability considerations:

• Work-cover insurance: Specify whether the original employer or host organisation provides work-cover insurance in case of injury or illness.
• Public liability: Clarify if the host organisation’s public liability insurance will cover the employee during the secondment period.
• Professional indemnity: If relevant, state which party’s insurance covers any professional liabilities that may arise.

Confidentiality and intellectual property

Secondments often involve sharing sensitive information. Protecting confidentiality and intellectual property (IP) rights is crucial, especially when the employee works with sensitive data or creates IP during the secondment.

Key clauses to include:

• Confidentiality agreement: Outline requirements for handling sensitive information the host organisation shares.
• Intellectual property ownership: Specify who owns any IP created by the employee during the secondment. Clarify if the original employer retains ownership or if the host organisation has the right to develop IP on their premises.
• Data security: Include terms to ensure compliance with the host organisation’s data security standards.

Essential legal terms

Secondment agreements should include additional legal terms defining the boundaries and expectations for both parties to prevent disputes.

Additional terms:

• Termination conditions: State under what conditions the secondment can be ended early, such as by mutual agreement or due to performance issues.
• Rights and entitlements: List any changes to the employee’s rights and entitlements during the secondment, including leave, superannuation and other benefits.
• Compliance: Ensure the agreement complies with local employment laws and industry regulations to avoid legal issues.

By covering these legal areas, employers can protect their interests and support a productive secondment. A detailed agreement benefits both the employee and employer by providing clear terms and legal security throughout the secondment process.

FAQs about secondment 

Can secondments be permanent?

Most secondments are temporary. However, a secondment might lead to permanent roles if both parties agree. An employee may also decide to pursue a permanent position at the host organisation if the opportunity arises.

What are the terms of the secondment agreement?

The terms of the secondment agreement should cover key details, including role, duration, wage, and any rights or obligations. The agreement must help to ensure both parties understand their responsibilities. It’s important to consider if the agreement addresses the ownership of any intellectual property created during the secondment.

Who is responsible for health and safety during a secondment?

Both the host and the current employer have a duty to provide the employee with a safe working environment. The secondment agreement should address health and safety standards to help ensure the employee’s wellbeing. This is especially important if the employee is moving to another organisation where different risks may apply.

What challenges might arise during a secondment?

Challenges that may arise include adjusting to new projects, changes in the work environment and fulfilling the secondment agreement’s obligations. Employers should outline potential risks and provisions in the agreement to help manage these challenges and support a successful transition.

Who gives consent for a secondment?

Consent must be obtained from the current employer, the host organisation and the employee before a secondment begins. Formal secondment programs often have clear processes to gain consent from all parties.

Does the host organisation have obligations to the seconded employee?

Yes, the host organisation may have specific obligations. These can include providing the employee with a safe working environment, clear job responsibilities and relevant training. The agreement should detail these responsibilities to prevent misunderstandings.

Are secondments beneficial for career development?

Yes, secondments are often highly beneficial. They allow employees to gain skills, expand networks and complete new projects. Secondments also give employees broader career insights, which can be valuable when they return to the original role or seek future opportunities.

Building a successful secondment program for your business

Creating a strong secondment program can bring lasting benefits to your business. To succeed, start with a clear, supportive framework. Align secondment policies with HR and business goals. Define roles and responsibilities so each secondment has structure and purpose. Consider how the program can help employees grow while meeting short-term staffing needs.

Encourage employee participation and gather feedback to improve the program. When employees feel valued and supported, they’re more likely to make the most of their secondment experience. Feedback from both employees and managers helps refine policies and ensures they stay relevant.

Secondments provide long-term value by supporting skill development, career growth and flexibility. A well-structured program builds an adaptable workforce and boosts engagement. By investing in secondments, employers create a pathway for growth that benefits both the business and its people.