Secondment Agreement (New Zealand)
Employee Secondment — Tripartite Arrangement, Ongoing Employment Preserved
This Secondment Agreement (the “Agreement”) is made on [Agreement Date] between:
[Employer Name] (NZBN: [Employer NZBN]), of [Employer Address], [Employer City], [Employer Region] [Employer Postcode] (the “Employer”);
[Host Name] (NZBN: [Host NZBN]), of [Host Address], [Host City], [Host Region] [Host Postcode] (the “Host Organisation”); and
[Employee Name], of [Employee Address], [Employee City], [Employee Region] [Employee Postcode] (the “Employee”).
The Employer, the Host Organisation, and the Employee are referred to collectively as the “Parties”.
BACKGROUND
A. The Employee is employed by the Employer as [Employee Position].
B. The Employer and the Host Organisation have agreed that the Employee will be temporarily seconded to the Host Organisation to perform the role of [Secondment Role] for a fixed period.
C. The Parties acknowledge that this Agreement creates a tripartite secondment arrangement. The Employee’s employment relationship with the Employer continues throughout the secondment period. The secondment is not a transfer of employment and does not affect the Employee’s continuity of service, leave accruals, or other entitlements under the Employment Relations Act 2000, the Holidays Act 2003, and the Employee’s existing employment agreement with the Employer.
D. The Employee consents to the secondment on the terms set out in this Agreement.
1. SECONDMENT ROLE AND PURPOSE
1.1 During the secondment period, the Employee will perform the role of [Secondment Role] at the Host Organisation.
1.2 The purpose of the secondment is: [Secondment Purpose].
1.3 The Employee’s day-to-day duties during the secondment will be directed by the Host Organisation, consistent with the role described in clause 1.1. The Host Organisation must not direct the Employee to perform duties that are materially outside the scope of the secondment role without the Employer’s prior written consent.
1.4 The Host Organisation acknowledges that it must exercise its direction of the Employee in a manner that is consistent with the good faith obligations under section 4 of the Employment Relations Act 2000 and does not constitute a breach of the Employee’s employment agreement with the Employer.
2. SECONDMENT PERIOD
2.1 The secondment commences on [Secondment Start] and is expected to conclude on [Secondment End] (the “Secondment Period”).
2.2 The Secondment Period may be extended by written agreement of all three Parties. Any extension does not constitute a permanent transfer of employment or a variation to the Employee’s employment agreement with the Employer.
2.3 At the conclusion of the Secondment Period, the Employee will return to their substantive role with the Employer as [Employee Position], unless otherwise agreed in writing.
3. EMPLOYMENT RELATIONSHIP
3.1 Throughout the Secondment Period, the Employee’s employment relationship remains with the Employer. The Employee is not employed by the Host Organisation and does not acquire any employment entitlements from the Host Organisation as a result of this secondment.
3.2 The Employer remains responsible for: (a) paying the Employee’s salary and KiwiSaver employer contributions (minimum 3% under the KiwiSaver Act 2006); (b) PAYE withholding and payroll obligations; (c) maintaining ACC levies and cover for the Employee; (d) managing all leave entitlements and liabilities under the Holidays Act 2003; and (e) disciplinary matters and termination of employment, in consultation with the Host Organisation where relevant.
3.3 The Employee’s continuity of service, for the purposes of leave entitlements, notice of termination, and all other service-based entitlements under the ERA, is not broken by the secondment.
3.4 The Host Organisation is not liable for any entitlements arising from the Employee’s employment relationship with the Employer, except as expressly provided in this Agreement.
4. REMUNERATION
4.1 During the Secondment Period, the Employee will receive a salary of [Salary] (NZD, gross before tax). The Employer will make KiwiSaver employer contributions at the applicable rate (minimum 3% under the KiwiSaver Act 2006) on top of the salary.
4.2 The Employer will continue to pay the Employee’s salary and KiwiSaver contributions directly. Any variation to the Employee’s remuneration during the Secondment Period requires the written agreement of all three Parties.
5. LEAVE ENTITLEMENTS
5.1 The Employee continues to accrue annual leave, sick leave, and family violence leave with the Employer throughout the Secondment Period, in accordance with the Holidays Act 2003.
5.2 [Leave Arrangement].
5.3 The Employee must comply with the Employer’s leave application procedures when requesting leave during the Secondment Period. The Employee must also give reasonable notice to the Host Organisation of any planned absence.
6. HEALTH AND SAFETY
6.1 Both the Employer and the Host Organisation are Persons Conducting a Business or Undertaking (PCBUs) under the Health and Safety at Work Act 2015 (HSWA), and each owes concurrent primary duties to ensure the health and safety of the Employee during the Secondment Period, so far as is reasonably practicable.
6.2 The Host Organisation has primary day-to-day health and safety responsibility for the Employee during the Secondment Period and must: (a) provide and maintain a safe work environment at the host site; (b) provide the Employee with site-specific induction, information, instruction, and supervision; (c) consult with the Employer about any health and safety hazards or risks affecting the Employee; and (d) notify the Employer immediately of any workplace injury, incident, or notifiable event involving the Employee under the HSWA.
6.3 The host organisation’s health and safety representative or contact is [Host HS Contact].
6.4 The Employee’s personal injury entitlements during the Secondment Period are governed by the Accident Compensation Act 2001. ACC levies remain the responsibility of the Employer. The Host Organisation must provide full cooperation in the management of any ACC claim arising from an injury at the host site.
6.5 The Employee retains the right under section 83 of the HSWA to refuse to perform work that they believe would expose them to a serious risk to their health and safety.
7. EARLY TERMINATION AND RETURN
7.1 The Host Organisation or the Employer may end the secondment early by giving the other parties [Termination Notice Days] calendar days’ written notice.
7.2 The secondment may be terminated immediately by any party by written notice if: (a) the Employee commits serious misconduct in accordance with the Employer’s disciplinary policy; (b) the Host Organisation or Employer is placed in liquidation, receivership, or voluntary administration; or (c) circumstances at the host site make it impracticable or unsafe for the Employee to continue working there.
7.3 On early termination of the secondment, the Employee will return to their substantive role with the Employer as [Employee Position] (or such other role as may be agreed in writing). Early termination of the secondment does not constitute a termination of the Employee’s employment with the Employer.
7.4 The Employer will follow a fair and reasonable process consistent with the good faith obligations under section 4 of the ERA in respect of any employment matter arising from the early termination of the secondment.
8. GENERAL PROVISIONS
8.1 Governing Law. This Agreement is governed by and construed in accordance with the laws of New Zealand, including the Employment Relations Act 2000, the Holidays Act 2003, the Health and Safety at Work Act 2015, the KiwiSaver Act 2006, the Accident Compensation Act 2001, and the Privacy Act 2020. The Parties submit to the non-exclusive jurisdiction of the courts of New Zealand sitting in [Governing Region].
8.2 Entire Agreement. This Agreement (together with the Employee’s existing employment agreement with the Employer) constitutes the entire agreement between the Parties in relation to the secondment.
8.3 Amendments. No amendment to this Agreement is effective unless it is in writing and signed by all three Parties.
8.4 Severability. If any provision of this Agreement is void or unenforceable, it may be severed without affecting the validity of the remaining provisions.
8.5 Privacy. The Parties must handle personal information relating to the Employee in accordance with the Privacy Act 2020 and the Information Privacy Principles.
EXECUTED as an Agreement on the date first written above.
EMPLOYER
[Employer Name]
NZBN: [Employer NZBN]
Address: [Employer Address], [Employer City], [Employer Region] [Employer Postcode]
HOST ORGANISATION
[Host Name]
NZBN: [Host NZBN]
Address: [Host Address], [Host City], [Host Region] [Host Postcode]
EMPLOYEE
[Employee Name]
Address: [Employee Address], [Employee City], [Employee Region] [Employee Postcode]
Employer
________________
Signature
Host Organisation
________________
Signature
Employee
________________
Signature
What Is a Secondment Agreement (New Zealand)?
A Secondment Agreement in New Zealand sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Employment Relations Act 2000.
Under New Zealand law, a secondment is fundamentally a continuation of the existing employment relationship. The employee does not leave their employment with the original employer and does not enter into a new employment relationship with the host organisation. This has important practical and legal consequences. The original employer retains all its obligations as the employer under the Employment Relations Act 2000 (ERA), including the duty of good faith under section 4, the obligation to provide a written employment agreement, the obligation to follow fair processes before disciplining or dismissing the employee, and the obligation to pay wages, make KiwiSaver contributions under the KiwiSaver Act 2006, and manage leave entitlements under the Holidays Act 2003. The employee's continuity of service, which determines entitlements such as annual leave accrual, sick leave, and notice periods, is not broken by the secondment.
At the same time, the host organisation takes on significant responsibilities during the secondment. Under the Health and Safety at Work Act 2015 (HSWA), the host organisation is a Person Conducting a Business or Undertaking (PCBU) with concurrent primary duties to confirm the health and safety of workers at its site, including seconded workers. The HSWA requires the host organisation to provide a safe work environment, site-specific induction and training, and to notify the employer immediately of any workplace injury or notifiable event involving the seconded employee. The original employer and the host organisation must consult, cooperate, and coordinate with each other on health and safety matters affecting the seconded employee, as required by sections 34 and 35 of the HSWA.
The Accident Compensation Act 2001 provides no-fault personal injury cover to the employee during the secondment, with ACC levies remaining the responsibility of the original employer. This means the employee cannot bring personal injury proceedings against the employer or the host organisation for a covered injury, regardless of fault. This is a distinctive feature of New Zealand employment law that differs from the position in Australia, the UK, and other common law jurisdictions.
GST considerations arise when the host organisation reimburses the employer for the costs of the seconded employee. The supply of a seconded employee is generally treated as a taxable supply of services under the Goods and Services Tax Act 1985, meaning GST at 15% may apply to the reimbursement amount. Both parties should seek specific GST advice on the characterisation of the reimbursement.
When Do You Need a Secondment Agreement (New Zealand)?
A Secondment Agreement is needed whenever a New Zealand organisation plans to temporarily assign an employee to work at a different organisation — whether within the same corporate group, between unrelated commercial entities, between a private company and a government agency, or in an inter-sector arrangement.
The agreement is particularly important because of the tripartite nature of a secondment — three separate parties (employer, host, and employee) have distinct rights and obligations, and a written agreement is the clearest way to document these and avoid disputes. Without a written secondment agreement, the roles and responsibilities of each party are unclear. The employee may not know who to approach about leave approvals or workplace grievances. The host organisation may not know the extent of its health and safety responsibilities. The employer may have no mechanism for recovering payroll costs from the host.
A written secondment agreement is essential if the host organisation is to reimburse the employer for the costs of the seconded employee. The agreement provides the commercial basis for invoicing, specifies the amounts payable, and documents whether GST applies. In public sector secondments — which are common in New Zealand, for example between central government agencies, between government and Crown entities, or between government and local councils — the cost recovery arrangements must be clearly documented to comply with public finance requirements and audit expectations.
The agreement is also needed to protect the original employer's employment relationship with the employee. Without clear documentation, a long or open-ended secondment could risk being characterised as a transfer of employment to the host organisation, with potential consequences for continuity of service, leave liabilities, and redundancy entitlements. A well-drafted secondment agreement with a defined end date and a clear right of return to the original employer protects against this risk.
For both the employer and the host organisation, the agreement is needed to allocate health and safety responsibilities clearly. Under the HSWA, both organisations are PCBUs with concurrent duties, and the agreement should specify which organisation has primary responsibility for day-to-day health and safety at the host site, what reporting obligations apply, and who is responsible for ACC levies and claims management.
What to Include in Your Secondment Agreement (New Zealand)
A Secondment Agreement for New Zealand should contain the following key elements to be effective and legally compliant.
The parties section must clearly identify all three parties: the employer, the host organisation, and the employee. NZBNs should be included for business entities.
The background section should confirm the tripartite nature of the arrangement, acknowledge that the employment relationship remains with the employer throughout, and confirm the employee's consent to the secondment.
The secondment role and purpose clause should clearly describe the role the employee will perform at the host organisation and the purpose of the secondment. The host organisation must not direct the employee outside the agreed scope of the secondment role without the employer's consent.
The secondment period clause specifies the start and end dates. A defined end date is important to protect the employee's right to return and to prevent the secondment from becoming an indefinite arrangement that risks being characterised as a transfer of employment.
The employment relationship clause should confirm that the employee's employment contract with the employer continues throughout, that continuity of service is not broken, and that the employer retains all its obligations under the ERA, the Holidays Act 2003, and the KiwiSaver Act 2006.
The remuneration clause should specify the employee's salary during the secondment (in NZD) and confirm that the employer continues to pay salary and KiwiSaver contributions.
The cost reimbursement clause (if applicable) should specify the total reimbursement amount, payment terms, and GST treatment.
The leave entitlements clause should confirm that the employee continues to accrue leave with the employer and specify the leave approval arrangement during the secondment.
The health and safety clause must acknowledge the concurrent PCBU duties of both the employer and host organisation under the HSWA 2015, identify the host organisation's primary day-to-day H&S responsibility at the host site, and reference the ACC Act 2001.
The confidentiality clause (if included) should protect confidential information of both the employer and the host organisation.
The early termination clause should specify the notice period required to end the secondment early and the consequences for the employee's substantive role.
The governing law clause should confirm that New Zealand law governs the agreement, referencing the ERA 2000, Holidays Act 2003, HSWA 2015, KiwiSaver Act 2006, ACC Act 2001, and Privacy Act 2020. The forms-legal.com Secondment Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Secondment Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/employment/contracts/secondment-agreement-new-zealand
"Secondment Agreement (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/employment/contracts/secondment-agreement-new-zealand.
@misc{formslegal-secondment-agreement-new-zealand,
author = {{Forms Legal}},
title = {Secondment Agreement (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/employment/contracts/secondment-agreement-new-zealand}},
note = {Free legal document template. Based on Employment Relations Act 2000}
}
Frequently Asked Questions
A secondment in New Zealand is a temporary arrangement under which an employee is assigned to work at a different organisation (the host organisation) for a defined period while remaining employed by their original employer (the seconding employer). The employment relationship between the employee and the original employer continues throughout the secondment — the employee does not resign, and continuity of service is preserved. The secondment is governed by a tripartite agreement between the employer, the host organisation, and the employee. Under the Employment Relations Act 2000, the original employer retains all its obligations as the employer, including paying salary, making KiwiSaver contributions under the KiwiSaver Act 2006, managing leave entitlements under the Holidays Act 2003, and handling any disciplinary matters. The host organisation has day-to-day management responsibility and, as a Person Conducting a Business or Undertaking (PCBU) under the Health and Safety at Work Act 2015, also has primary health and safety obligations at the host site. At the end of the secondment, the employee returns to their substantive role with the original employer.
No. A secondment does not interrupt an employee's leave entitlements under the Holidays Act 2003. The employee continues to accrue annual leave (4 weeks per year after 12 months), sick leave (10 days per year after 6 months), and family violence leave (10 days per year from the first day of employment) throughout the secondment period, as these entitlements are tied to the employment relationship with the original employer rather than to the place of work. The employee's continuity of service for the purposes of leave accruals, notice of termination, and other service-based entitlements under the Employment Relations Act 2000 is not broken by the secondment. The secondment agreement should specify whether the host organisation reimburses the employer for any leave taken by the employee during the secondment period, and whether leave applications require approval from the host organisation as well as the employer.
Under the Health and Safety at Work Act 2015 (HSWA), both the original employer and the host organisation are Persons Conducting a Business or Undertaking (PCBUs) with concurrent primary duties to requires the health and safety of the seconded employee. The HSWA requires PCBUs to consult, cooperate, and coordinate with each other when they share responsibility for the same work or workers. In practice, the host organisation has primary day-to-day health and safety responsibility at the host site — it must provide a safe work environment, site-specific induction and training, and notify the employer immediately of any workplace injury, incident, or notifiable event involving the seconded employee. The original employer retains responsibility for maintaining ACC levies and cover for the employee, and must cooperate in the management of any ACC claim. If the employee suffers a workplace injury during the secondment, their no-fault entitlements are covered by the Accident Compensation Act 2001, and they cannot bring personal injury proceedings against either the employer or the host organisation for the covered injury.
No. The host organisation cannot dismiss the seconded employee because it is not the employer. The employment relationship remains entirely with the original employer throughout the secondment. The host organisation can, however, end the secondment early by giving the notice specified in the secondment agreement. If the host organisation wants to end the secondment because of conduct or performance issues with the employee, it should communicate those concerns to the employer, who must then decide how to handle the matter in accordance with the good faith obligations under section 4 of the Employment Relations Act 2000 and any applicable disciplinary process. Any dismissal of the employee — whether during or after the secondment — must be carried out by the employer following a fair and reasonable process under the ERA. If the employee is dismissed in connection with the secondment, they retain the right to raise a personal grievance for unjustified dismissal (subject to the applicable time limits and the 2026 $200,000 threshold for new agreements).
Potentially yes. Where the host organisation reimburses the original employer for the costs of the seconded employee, the GST treatment depends on whether the arrangement constitutes a taxable supply of services under the Goods and Services Tax Act 1985. Inland Revenue's position is that the supply of a seconded employee by the employer to the host organisation (for a fee) is generally a taxable supply of services subject to GST at 15%. This means the employer should typically add GST to its invoices for the reimbursement amount, and the host organisation (if registered for GST) can claim an input tax credit. However, if the reimbursement is purely a cost pass-through with no profit element, the GST treatment may differ. The Parties should obtain specific GST advice from a tax adviser or accountant in New Zealand, as the GST treatment of secondment arrangements can be complex and depends on the specific terms of the arrangement.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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