A Secondment Agreement is a legally binding tripartite contract that governs the temporary assignment of an employee from their employing organisation (the 'employer' or 'seconding organisation') to another organisation (the 'host organisation') for a defined period. The employee performs work under the direction of the host organisation, while their employment relationship with the original employer remains intact throughout.

In Australia, secondments are used extensively in the corporate sector, the public service, not-for-profit organisations, and multi-national companies. They serve a range of business purposes: transferring specialist skills and expertise between organisations, providing leadership development opportunities for high-potential employees, supporting collaborative or joint venture projects, and enabling staff exchanges between organisations in the same industry or regulatory sector.

A secondment is legally distinct from a transfer of employment. In a transfer, the employee leaves one employer and starts a new employment relationship with another. In a secondment, the original employment contract remains on foot. The employee retains their continuity of service, their leave entitlements (annual leave, personal/carer's leave, long service leave), and all rights under the Fair Work Act 2009 (Cth) and their existing employment contract. At the end of the secondment, the employee returns to their substantive role with the employing organisation.

This Australian Secondment Agreement template is designed for commercial, corporate, and government secondment arrangements and covers all of the key issues that must be addressed in a tripartite secondment, including the preservation of employment entitlements, allocation of WHS responsibilities, cost reimbursement, confidentiality obligations, and early termination provisions.

A Secondment Agreement is needed whenever an employee is temporarily assigned to work at or for another organisation in Australia, while remaining employed by their original employer. Both the employing organisation and the host organisation need a written agreement to document their respective rights and obligations.

Common situations in which an Australian Secondment Agreement is essential include: when a large corporation temporarily assigns a specialist manager, engineer, or consultant to a subsidiary, related entity, or joint venture partner; when a government agency seconds a public servant to another agency, a statutory body, or a private sector partner for a specific policy or infrastructure project; when a professional services firm seconds a solicitor, accountant, or advisor to a client for an extended engagement; when universities, TAFE colleges, or research organisations second academic or research staff to industry partners; when two companies collaborate on a shared initiative and each seconds staff to a joint project team; and when a multi-national company rotates staff between its Australian entity and an overseas affiliate.

Without a written Secondment Agreement, there is significant risk of dispute about: who bears WHS responsibility if the employee is injured at the host site; whether the host organisation can direct the employee to perform duties outside the agreed role; whether the employee's leave entitlements are preserved; how the cost of the employee is allocated between the organisations; and what happens if the secondment needs to end early.

This template is suitable for all Australian states and territories including New South Wales, Victoria, Queensland, Western Australia, South Australia, and the Australian Capital Territory.

A well-drafted Australian Secondment Agreement must address several key elements to protect all three parties.

Preservation of the employment relationship is the fundamental element. The agreement must clearly state that the employment relationship remains between the employee and the employing organisation throughout the secondment, and that the secondment does not constitute a transfer of employment. This protects the employee's continuity of service, leave accruals, and entitlements under the Fair Work Act 2009 (Cth) and their employment contract.

The secondment role and purpose must be clearly defined. The host organisation can only direct the employee to perform work within the agreed secondment role. If the host organisation requires the employee to perform materially different or additional duties, this should be treated as a variation to the secondment arrangement, requiring the employing organisation's written consent.

Remuneration and cost reimbursement arrangements must be transparent. The agreement should specify the employee's salary during the secondment, whether the host organisation will reimburse the employing organisation for payroll costs (including salary, superannuation guarantee at 11.5% in 2024-25, payroll tax, and workers' compensation insurance premiums), and the payment terms for any reimbursement invoice.

Leave management provisions clarify how the employee's leave entitlements are administered. Because the employment relationship remains with the employing organisation, all leave applications should be approved by the employing organisation (and notified to the host organisation). The agreement should address whether leave taken during the secondment is reimbursed by the host organisation as part of the cost recovery arrangement.

Work Health and Safety responsibilities must be allocated clearly. Both the employing organisation and the host organisation are PCBUs under the Work Health and Safety Act 2011 (Cth) with concurrent duties. The host organisation has primary day-to-day WHS responsibility, while the employing organisation retains workers' compensation insurance obligations.

Early termination provisions allow the secondment to be wound up if circumstances require, without triggering a termination of employment. The agreement should specify the notice period for early termination and confirm that the employee returns to their substantive role on conclusion.