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How to White Out Secondment Agreement

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Welcome to Deloitte's tax webcast series focused on Asia Pacific, specifically discussing "Secondment Arrangements: Recent Rulings and Key Impact." Sumit, a tax partner at Deloitte India, hosts the session, featuring three other tax partners: Bhaskar, an expert in indirect taxes; Arthi, specializing in employment and immigration taxes; and Switching, a transfer pricing specialist. Viewers can find details about the speakers on the left side of the screen. The webcast console allows participants to submit content-related questions while remaining in listen-only mode. The agenda will be introduced shortly.

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What is the downside of secondment?

Some of the disadvantages of secondments are a lack of motivation when the employee returns to the substantive position as they see this as a demotion. They are not engaged and therefore do not perform as well as they could or would have in the past.

What are the issues with secondment?

Secondment risks Paying wages and making statutory wage deductions and contributions. Approving and supervising vacations, leaves, and accommodation requests. Disciplining the employee or terminating the employment relationship. Ensuring a position to return to upon completion of the secondment.

What should be included in a secondment agreement?

The secondment agreement should therefore state that the employer will retain responsibility for administrative tasks such as: paying the secondees salary, benefits and pension contributions; reimbursing the secondee for reasonably incurred expenses; accounting for income tax and National Insurance contributions;

Can you get out of a secondment?

Exceptionally, if the secondee requests this, or if there is a business need, or if the secondee is underperforming in the role, the manager may consider an early termination of the secondment arrangement.

What are the rules on secondment?

A secondment does not terminate an employees contract of employment; the contract continues to subsist during the period of secondment, and a key principle of the arrangement is that the employee is expected to return to his or her substantive post when the secondment ends.

Should I go on a secondment?

A secondment is an excellent networking opportunity. You have the chance to meet and become friends with a whole new team, and these relationships can prove to be beneficial throughout your career. Make a good impression, and you can draw upon your new connections when needed. A low risk opportunity.

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White Out Secondment Agreement