Secondments - Getting It Right

Secondment assignments are quite common in Bermuda, particularly in respect of start-up companies. This is where an employee (Secondee) from one organisation (Employer) is temporarily assigned to another part of the company group or to another organisation (Host). Generally, the Secondee retains the same terms and benefits of the employment agreement with the Employer (Employment Agreement). Secondments should always be documented in an agreement between the Employer and the Host which will deal with issues such as responsibility for payment of salary, reporting requirements, which employer retains overall control, managing work and protecting business interests.  However, as this is also a three way relationship the Employer should also ensure that they provide a letter of secondment to the Secondee (Secondment Letter). This will reduce the risk of complications arising and provide clarity if there is a dispute.