Continued validity of existing employment contracts with extension to include additional secondment contracts
Suspension of the existing employment contract and conclusion of a local employment contract in the host country
In principle, however, it must be said that in many cases there is no clear demarcation between the two options. This is also due to the fact that even when secondment contracts are concluded with continuing home employment contracts, an employment agreement must sometimes be concluded in the host country due to national regulations, which can then lead to a mixture of the two variants.
From a contractual point of view, one speaks of classic secondment if the employee’s previously existing employment contract continues to exist as the basis of the employment relationship during the assignment abroad. In addition to this existing employment contract, a secondment contract is concluded which contains all additional agreements for the activity in the host country. However, reference is always made to the existing domestic employment contract.
In terms of content, secondment agreements should contain at least the following provisions:
How extensively and in detail the individual points are regulated depends primarily, of course, on the size and structure of the company and the number of postings. However, when drawing up secondment agreements, it is advisable to ensure that they can be used for all possible secondment constellations so that individual agreements do not have to be made for each individual case. This carries the risk that employees are treated unequally and that the corporate objectives behind a foreign assignment can no longer be reliably implemented.
Another important characteristic that secondment agreements should fulfill is that they transfer the company’s own values and objectives to the foreign assignment of employees. To this end, it is advisable to anchor key contents of the “normal” employment contracts, which particularly express the corporate mission statement, in the secondment contract as well. These may include, for example, home office regulations, working time models, company-provided work equipment or vacation regulations. Below you will find some examples from practice that show how companies have also implemented employment contract provisions that particularly characterize their philosophy in secondment contracts.
In contrast to the classic assignment, a transfer is when the employee assigned abroad is also contractually integrated into the host company. For this purpose, the employee and the host company conclude an independent employment contract that governs all the general conditions of the foreign assignment. The employment contract in the home country, on the other hand, is usually suspended completely during the assignment period. In addition, a reintegration agreement is usually concluded between the employee and the sending home company, which assures the employee that his or her home employment contract will be reinstated and that he or she will continue to be employed after returning from abroad.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.