Secondment Agreement (UAE)

A Secondment Agreement in the UAE is a tri-partite written arrangement under Federal Decree-Law No. 33 of 2021 (the UAE Labour Law) and Cabinet Resolution No. 1 of 2022 under which the home employer — the entity with whom the employee has a registered employment contract — temporarily transfers the employee to a host employer for a defined purpose and period, while the home employment contract remains in force and the employee's statutory entitlements continue to accrue. The agreement records the duties of each party, the cost-sharing arrangement between the two employers, the MOHRE permit structure, and the terms on which the employee returns to the home employer at the end of the secondment.

Secondments are common in the UAE's banking, finance, technology, and professional-services sectors, where large corporate groups operate multiple subsidiaries or joint ventures, or where individual expertise must be shared across entities without the administrative complexity of terminating and re-engaging the employee. The UAE Civil Code (Federal Law No. 5 of 1985), which governs commercial and contractual relationships between the employers, underpins the cost-allocation and reimbursement provisions of the secondment agreement, while the Labour Law governs the employee's rights throughout the period.

Under Federal Decree-Law No. 33 of 2021, the seconded employee's home employment contract cannot be varied during the secondment without the employee's written consent. Article 43's notice requirements apply to the home employment relationship, and Article 51's end-of-service gratuity continues to accrue on the home basic salary throughout the secondment period. Article 8's limited-term requirement means the home contract must remain valid and registered with MOHRE throughout the secondment, and the employer responsible for WPS payments — the Wages Protection System established by Ministerial Decree No. 788 of 2009 — must continue to pay wages electronically regardless of which employer bears the economic cost.

MOHRE's position on secondments between mainland UAE employers is that the employee must be registered under the entity that functions as the employing entity for permit purposes. Where the home employer retains the MOHRE permit and WPS registration, the host employer's day-to-day direction of the employee is permissible as long as it falls within the scope of the secondment agreement. Where the host employer is in a different regulatory zone — for example, if the home employer is on the mainland and the host employer is in the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM) — the permit arrangements are more complex and should be reviewed with the relevant free-zone authority before the secondment commences.

The agreement must also address intellectual property. Work product created by the employee during the secondment in the service of the host employer's business belongs to the host employer under UAE Federal Law No. 38 of 2021 on Copyright and Neighbouring Rights, unless the agreement provides otherwise. A clear IP clause prevents disputes between the home and host employers at the end of the secondment, particularly in technology development, creative projects, and product-design engagements. The employee's duty of confidentiality extends to both employers' information, and Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data applies to any personal data the employee handles while at the host.

A UAE Secondment Agreement is needed any time an employer in the United Arab Emirates wishes to lend or transfer an employee to another employer — within the same corporate group, to a joint-venture partner, or to a client — for a specific period and purpose, while retaining the home employment contract and the employee's statutory entitlements under Federal Decree-Law No. 33 of 2021.

Corporate groups with subsidiaries across the UAE's different jurisdictions — mainland, DIFC, ADGM, and other free zones — routinely second employees between entities. A technology specialist employed by the mainland parent may be seconded to an ADGM-regulated subsidiary for a regulatory project; a compliance officer at a DIFC-licensed bank may be seconded to a UAE-mainland affiliated entity during a merger. In each case, the three-party agreement documents the arrangement and protects each party's rights.

The agreement is also needed when a client arrangement requires a senior specialist to be embedded in the client's organisation for a period. Consulting firms, law firms, accounting practices, and technology vendors regularly second staff to client sites in Abu Dhabi, Dubai, and the northern emirates. The secondment agreement establishes that the employee's statutory entitlements remain with the consulting firm, that the client cannot purport to dismiss or re-engage the employee, and that the intellectual property created during the engagement belongs to the client.

Joint-venture entities formed for major UAE infrastructure, real estate, or technology projects often need specialists from each joint-venture partner seconded to the project entity for the project's duration. The secondment agreement allocates costs between the partners, defines the employee's reporting lines at the project entity, and provides a mechanism for recall if the joint venture is restructured.

The agreement is needed when UAE Emiratisation requirements or Nafis obligations make it administratively efficient to second a UAE national from an entity with a strong Emiratisation track record to a partner entity that needs to meet its Emiratisation quota. MOHRE's position on such arrangements requires careful documentation to ensure the Emirati employee's rights are protected and the secondment is not used to artificially inflate one entity's Emiratisation count at the expense of genuine employment.

Finally, an outbound secondment — where a UAE-based employer seconds an employee to an overseas entity — requires the agreement to address UAE visa implications (the UAE permit and residency visa may lapse if the employee is absent for more than six months), the tax position of the employee in both countries, and whether UAE or foreign law governs the relationship during the overseas period.

A UAE Secondment Agreement compliant with Federal Decree-Law No. 33 of 2021, the UAE Civil Code (Federal Law No. 5 of 1985), and MOHRE's permit requirements must contain the following essential elements. The forms-legal.com UAE Secondment Agreement template covers each element in a tri-partite format signed by the home employer, the host employer, and the employee.

Party identification requires the home employer's legal name, trade-licence number, and registered address; the host employer's corresponding details (including the free-zone registration number if the host is in the DIFC, ADGM, or another zone); and the employee's full name, Emirates ID or passport number, and job title during the secondment.

Secondment scope and term must state the start and end dates of the secondment and the purpose — for example, to support a specific project, to provide specialist expertise, or to manage a client engagement. The scope statement becomes important if there is a dispute about whether work performed during the secondment fell within the agreed purpose.

Home contract continuity clause must confirm that the home employment contract remains in force under Federal Decree-Law No. 33 of 2021, that all statutory entitlements (annual leave, sick leave, gratuity) continue to accrue, and that the employee will return to the home employer at the secondment's end unless the parties agree otherwise in writing.

Day-to-day direction clause must confirm that the host employer directs the employee's work during the secondment, subject to the limitations in the agreement and the home employment contract. The host employer's obligations — safe workplace, no re-assignment outside the agreed scope, data-protection compliance — should be listed.

Salary continuation and cost allocation must state the monthly basic salary in AED, the secondment allowance (if any), and which employer pays the employee. Whatever the economic allocation between employers, WPS payment must continue through the registered employer under Ministerial Decree No. 788 of 2009.

MOHRE permit arrangement must state whether the employee remains on the home employer's MOHRE permit or whether the host employer obtains a new permit. This is the most technically complex element for cross-jurisdiction secondments, and the parties should consult MOHRE's Tasheel service before executing the agreement.

Intellectual property clause must allocate ownership of work product created during the secondment — typically to the host employer for work done in the host's business, with carve-outs for pre-existing IP of the home employer. UAE Federal Law No. 38 of 2021 on Copyright and Neighbouring Rights governs the IP created by the employee.

Confidentiality and data protection must extend to both employers' information and must require compliance with Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data.

Early recall clause must give both employers the right to end the secondment on 30 days' notice and must specify the immediate-recall grounds (serious misconduct at the host). The right to terminate the employment contract rests with the home employer.

Return arrangements must confirm the employee's role on return and any transition support the home employer will provide.

Filling in a UAE Secondment Agreement requires representatives from both the home employer and the host employer to coordinate before the agreement is finalised, as both parties must confirm the MOHRE permit arrangement, the cost allocation, and the IP provisions. Work through each section in order.

Begin with the agreement date, secondment start date, and secondment end date. State the purpose of the secondment in one to two sentences that are specific enough to define the work scope — for example, 'to manage the implementation of the Oracle ERP system at the Host Employer's headquarters and provide technology training to the Host Employer's IT staff'.

Complete the home employer details with the legal name on the MOHRE establishment registration, the licence number, and the registered address. Complete the host employer details with the same care — for free-zone employers, use the free-zone registration number issued by DIFC, ADGM, RAKEZ, or the relevant authority.

Fill in the employee details. Enter the full name, Emirates ID or passport number, and the job title during the secondment — for example, 'Senior Technology Consultant (seconded)' — which should distinguish the secondment role from the home job title where different. State the host work location precisely.

In the commercial terms section, select the salary continuation model that reflects the agreed inter-company arrangement. If the home employer pays all salary and recharges the host employer, choose the first option. If the host employer pays a separate secondment allowance on top of the base salary, choose the second. State the monthly basic salary in AED and the secondment allowance.

For the MOHRE permit arrangement, consult MOHRE's Tasheel service before selecting an option. For most intra-group mainland secondments, retaining the employee on the home employer's permit is the simplest approach. For secondments involving a DIFC or ADGM host employer, the free-zone may require its own registration. Both employers should document the agreed approach in writing to avoid a permit compliance gap.

All three parties — the home employer, the host employer, and the employee — must sign the agreement. The employee's signature confirms consent to the secondment and acknowledgment of the data-protection and confidentiality obligations.

Secondment Agreement UAE — Legal Requirements. Federal Decree-Law No. 33 of 2021 (the UAE Labour Law), in force since 2 February 2022, governs the employee's statutory rights throughout any secondment period involving a mainland UAE employer. Cabinet Resolution No. 1 of 2022 sets the executive regulations and confirms that flexible work models — including temporary transfers to other entities — are recognised within the UAE private-sector framework.

Article 8 requires that the home employment contract be a valid limited-term contract. The secondment does not extend or vary the home contract's term; it is a separate arrangement layered on top of the contract. Article 9's probation rules apply to the home contract, not to the secondment period. Articles 17 and 19 limit working hours (48 per week) and set overtime rates; these limits apply equally during the secondment, and the host employer must not require work beyond those limits without WPS-recorded overtime compensation.

Article 29 (annual leave), Article 31 (sick leave), and Article 51 (end-of-service gratuity) continue to accrue on the home basic salary throughout the secondment. The home employer remains liable for all statutory dues under Article 53 on termination. Wages must be paid through the WPS under Ministerial Decree No. 788 of 2009 throughout.

Article 43 applies to early termination of the home employment contract, not to recall from the secondment; the employer can recall the employee from the secondment on shorter notice than the Article 43 employment notice period. Article 44 and Article 45 govern the grounds for termination without notice of the home employment contract.

The UAE Civil Code (Federal Law No. 5 of 1985) governs the commercial relationship between the home and host employers, including cost reimbursement, indemnities, and liability for the employee's acts during the secondment. Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data applies to both employers. Federal Law No. 38 of 2021 on Copyright governs IP created during the secondment. MOHRE handles employment disputes; civil courts handle inter-employer commercial disputes; DIFC and ADGM Courts apply their own frameworks.

UAE Secondment Agreement — Common Mistakes. Secondment disputes in the United Arab Emirates arise most frequently over three issues: which employer is responsible for the employee's statutory dues; who owns IP created during the secondment; and what happens to the MOHRE permit when the secondment crosses jurisdictional lines. The following errors are the most commonly observed.

1. Treating the secondment as a novation of the employment contract. A secondment is not a transfer of the employment contract to the host employer. The home employment contract remains in force, and the home employer retains all obligations under Federal Decree-Law No. 33 of 2021 — including notice, gratuity, and annual leave. A host employer who behaves as if it is the employee's employer — issuing a termination letter or making direct employment claims — exposes both the home and host employers to MOHRE penalties.

2. Failing to maintain WPS payments during the secondment. Regardless of which employer bears the economic cost, wages must be paid through the WPS registered employer under Ministerial Decree No. 788 of 2009. An interruption in WPS payments gives the employee grounds to resign without notice under Article 45 and claim full end-of-service entitlements.

3. Omitting the IP ownership clause. Without an express provision, there is genuine ambiguity about whether work created at the host employer belongs to the home employer (as the statutory employer) or the host employer (as the party who directed and benefited from the work). The DIFC and ADGM Courts have grappled with similar issues in common-law employment cases, and mainland UAE courts would apply Federal Law No. 38 of 2021 with reference to who directed the creation of the work.

4. Ignoring the MOHRE permit implications for cross-zone secondments. A mainland employee seconded to a DIFC employer who continues to use the mainland MOHRE permit may technically not be authorised to work within the DIFC, which has its own employment registration requirements. Check with both the mainland MOHRE and the host zone's authority before commencing.

5. Not recording the return date and role. Without a documented return arrangement, the employee may argue that the secondment was effectively a permanent transfer, particularly if the home employer has filled the employee's original role during the absence. A written return-to-role clause avoids this dispute.

6. Seconding an employee without their written consent. UAE Labour Law requires the employee's consent to any material variation of the employment contract. A secondment that substantially changes the employee's duties, location, or working conditions requires documented employee consent to be lawful under Federal Decree-Law No. 33 of 2021.