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A Secondment Agreement lets one company temporarily loan their employee to work at another organization while maintaining the original employment relationship. Under Saudi labor law, these arrangements help businesses share expertise and resources without creating new employment contracts or violating Saudization requirements.

The agreement spells out key details like duration, work duties, compensation structure, and which employer handles benefits and insurance. It's particularly common in the Kingdom's energy, construction, and consulting sectors, where specialized skills often need to be shared between partner organizations or project teams while protecting everyone's rights and obligations.

Use a Secondment Agreement when your organization needs to temporarily share skilled employees with another company in Saudi Arabia. This arrangement works perfectly for special projects requiring expertise you don't have in-house, or when helping a business partner build capabilities through knowledge transfer.

The agreement becomes essential in heavily regulated sectors like oil and gas, where specialized technical knowledge must flow between companies while maintaining Saudization compliance. It's also valuable during joint ventures, major construction projects, or when providing consulting services where staff need to work on-site at client locations for extended periods.

• Short-term Secondments: Used for specific projects lasting 3-12 months, common in construction and consulting sectors
• Cross-Border Arrangements: Specialized agreements for international staff transfers, incorporating visa requirements and Saudi labor laws
• Group Company Secondments: Structured for movements between affiliated companies under the same corporate umbrella
• Client-Site Agreements: Tailored for employees working at client locations, especially in technology and professional services
• Knowledge Transfer Secondments: Focused on training and capability building, popular in manufacturing and energy sectors

• Home Company (Original Employer): Maintains the primary employment relationship and typically initiates the Secondment Agreement
• Host Company: Receives the seconded employee and provides day-to-day work direction
• Seconded Employee: The professional whose services are temporarily transferred while maintaining original employment status
• Legal Departments: Draft and review agreements to ensure compliance with Saudi labor laws and Saudization requirements
• HR Managers: Handle practical implementation, including benefits administration and performance management

• Employee Details: Gather full name, position, qualifications, and current employment terms
• Duration Planning: Define exact start and end dates of the secondment period
• Role Specifics: Document new responsibilities, reporting lines, and performance expectations
• Cost Structure: Clarify salary arrangements, benefits, and which company covers specific expenses
• Compliance Check: Verify alignment with Saudi labor laws and Saudization requirements
• Company Information: Include complete legal names and registration details of both organizations
• Work Location: Specify exact workplace address and any travel requirements

• Parties' Information: Full legal names and commercial registration numbers of both companies
• Employment Terms: Clear statement maintaining original employment relationship while defining host company duties
• Duration Clause: Specific start and end dates with extension options
• Compensation Structure: Detailed breakdown of salary, benefits, and which company handles each payment
• Confidentiality Terms: Protection of sensitive information for all parties involved
• Termination Rights: Conditions for early termination and notice periods
• Governing Law: Explicit reference to Saudi Labor Law and dispute re����ֱ�� mechanisms

A Secondment Agreement differs significantly from an Agency Agreement, though both involve one party performing work for another. Here's how they differ in the Saudi context:

• Employment Relationship: Secondment maintains the original employment contract while temporarily placing the employee with another company. Agency agreements create a principal-agent relationship without employment ties
• Duration and Purpose: Secondments are typically time-limited and project-specific, while agency relationships often continue indefinitely for ongoing business representation
• Legal Obligations: In secondments, the original employer keeps primary responsibility for salary and benefits. Agents work independently and earn commissions or fees
• Regulatory Framework: Secondments must comply with Saudi labor laws and Saudization requirements. Agency agreements fall under commercial law and agency regulations