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Secondment Contract for the United States

Secondment Contract Template for United States

A Secondment Contract under U.S. law is a legally binding agreement that facilitates the temporary transfer of an employee from their original employer (home company) to another organization (host company) while maintaining their original employment relationship. The document outlines the terms and conditions of the secondment, including duration, duties, compensation, benefits, and the respective responsibilities of all parties involved, while ensuring compliance with federal and state employment laws.

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What is a Secondment Contract?

A Secondment Contract is essential when organizations need to temporarily transfer employees while maintaining their original employment status. This agreement, governed by U.S. federal and state laws, provides a comprehensive framework for managing the complexities of such arrangements. The contract addresses crucial aspects including employment continuity, compensation structures, tax implications, benefits maintenance, and regulatory compliance. Secondment Contracts are particularly valuable for organizations seeking to share expertise, facilitate knowledge transfer, or provide development opportunities while protecting the interests of all parties involved.

What sections should be included in a Secondment Contract?

1. Parties: Identification of home company, host company, and seconded employee

2. Background: Context of secondment arrangement and business purpose

3. Definitions: Key terms including Secondment Period, Services, Secondment Fee

4. Duration of Secondment: Term, commencement date, and termination provisions

5. Duties and Responsibilities: Scope of work, reporting lines, and performance expectations

6. Compensation and Benefits: Salary, benefits continuation, expenses, and payment arrangements

7. Employment Status: Continued employment relationship with home company

8. Governing Law and Jurisdiction: Specification of applicable US law and jurisdiction for dispute resolution

9. Confidentiality: Protection of confidential information of both home and host companies

10. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Secondment Contract?

1. International Mobility Support: Provisions for visa assistance, relocation support, and housing allowance for international secondments

2. Tax Equalization: Terms for tax treatment and compensation adjustments for cross-border or interstate secondments

3. Early Termination Provisions: Specific conditions and processes for early termination of longer-term secondments

4. Intellectual Property Rights: Provisions regarding ownership and protection of IP created during secondment

5. Data Protection: Compliance with relevant data privacy laws and regulations

What schedules should be included in a Secondment Contract?

1. Schedule 1 - Services Description: Detailed outline of seconded employee's duties and responsibilities

2. Schedule 2 - Compensation Package: Detailed breakdown of salary, benefits, and allowances

3. Schedule 3 - Secondment Fee Calculation: Method for calculating charges between companies

4. Appendix A - Home Company Policies: Relevant policies that continue to apply during secondment

5. Appendix B - Host Company Policies: Key policies of host company that secondee must comply with

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Agreement Contract

Cost

Free to use
Clauses



































Industries

Employment Law: Key federal regulations including Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act, Americans with Disabilities Act (ADA), Family and Medical Leave Act (FMLA), and state-specific employment laws

Immigration Law: For international secondments: Immigration and Nationality Act, visa requirements and restrictions, and work permit regulations

Tax Considerations: Internal Revenue Code, state tax regulations, tax equalization provisions, and social security implications

Employee Benefits: Employee Retirement Income Security Act (ERISA), health insurance regulations (COBRA), and state-specific benefits laws

Workers' Compensation: State-specific workers' compensation laws and cross-jurisdictional coverage requirements

Data Privacy: State privacy laws and industry-specific regulations that may apply to the secondment arrangement

Intellectual Property: Trade secrets protection, confidentiality requirements, and patent and copyright considerations

Contract Law: State-specific contract laws, statute of frauds requirements, and consideration requirements for valid contract formation

Health and Safety: Occupational Safety and Health Act (OSHA) and state-specific workplace safety regulations

Anti-discrimination Laws: Equal Employment Opportunity laws and state/local anti-discrimination provisions that must be complied with during secondment

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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