Responsibility and compensation clauses in a secondment agreement are important provisions, but not enough thought is given to how they are structured and formulated. A common mistake is to include liability and compensation provisions, which are appropriate for a service agreement but totally unsuited to a secondment agreement. This can happen when the author misundersted the nature of a detachment and how it differs, in some way, from a service agreement. In the case of a service contract, the taker pays for the provision of a service. The service provider is generally fully responsible for the delivery of the service, including the control of its staff and the control that the work is carried out to an appropriate standard and within an agreed schedule. A service contract often contains provisions that entrust responsibility for the work to the service provider, including protection benefits from the negligence of the claimant`s staff in the performance of work or injuries in the workplace. In addition, it is questionable whether the provision of an MP to a host means that the employer is performing a “job activity” within the meaning of the employment agency and employment company behaviour regulations in 2003. In this context, a separate agreement between the employer and the Member will help the employer ensure that it has fulfilled its obligations under these regulations, in order to obtain the Member`s agreement and give him the required level of information. The easiest way to do this is to write the Member a letter of secondment explaining all the essential conditions agreed between the employer and the host and ask him to sign it and return it to let him know of his agreement. As a result, the Member remains employed by his employer for the duration of the secondment on his original terms of employment. This could, however, mean that some minor changes to the overall employment contract may be necessary to allow for secondment, which may, however, be relatively informal and should ideally be agreed in advance with the Member.
You may include in the contract a “compensation” and a compensation clause under which the second company covers claims, damages and lawsuits arising from the employee`s action or omission during the posting period.