Secondment Letter Template: Key Clauses For Employers In Australia

Secondments can be a practical way to solve resourcing problems without committing to a permanent restructure or a new hire. Maybe you’ve won a new project, a key team member is going on leave, or you want to develop an emerging leader by giving them experience in a different team or business unit.

But while a secondment can feel like a simple temporary move, it still changes how work is performed day-to-day. That means it can quickly raise legal and HR issues if you don’t document the arrangement clearly.

This is where having a clear secondment letter template in Australia can help. A well-drafted secondment letter (or secondment agreement) helps you set expectations, protect confidential information, manage pay and reporting lines, and reduce the risk of disputes later.

Below, we’ll walk you through how to draft a secondment letter from an employer perspective, when you might need a more formal agreement, and the key clauses to include so the arrangement is clear, compliant, and practical to administer.

What Is A Secondment (And When Should You Use One)?

A secondment is a temporary arrangement where an employee is assigned to perform work in a different role, team, location, or even a different entity (such as a related company or a host business).

In a small business context, secondments are often used to:

• Cover a temporary gap (for example, parental leave, extended sick leave, or a sudden resignation).
• Support a project that needs extra capability for a defined period.
• Develop staff by giving them exposure to a new function, client base, or management responsibilities.
• Trial a role or restructure before making a permanent change (with care, and proper documentation).

Secondments are not one-size-fits-all. Some are internal (within your business). Others involve a host organisation, which can create extra risk if you don’t clearly define who employs the worker, who manages them day-to-day, and who is responsible for things like pay, safety, and conduct issues.

It’s also worth remembering that secondments sit within broader workplace obligations (including awards, enterprise agreements, and the Fair Work Act). If your secondment changes an employee’s duties, location, or hours, you’ll want to check whether those changes are permitted and how they should be documented.

Secondment Letter Vs Secondment Agreement: What’s The Difference?

People often search for a secondment agreement template in Australia, but in practice many secondments are documented by a letter (or letter agreement) that confirms the terms of the temporary arrangement.

As a general guide:

• Secondment letter: commonly used for internal secondments or lower-risk arrangements. It confirms the key terms of the secondment and is usually signed by the employer and employee.
• Secondment agreement: typically more detailed, and often needed where there is a host entity involved, or where the secondment changes risk exposure (confidential information, client relationships, safety obligations, or reporting lines).

The right choice depends on what you’re doing. If the employee is staying employed by your business and the secondment is mainly about a temporary change in duties, a letter may be enough (so long as it’s clear and complete).

If the employee will be working in another business (even within a group), you may need a more formal agreement that addresses who is responsible for supervision, workplace safety, and confidential information, plus what happens if something goes wrong.

Also, your secondment terms should work alongside the employee’s existing employment documents. If you don’t already have a written contract in place, it’s often worth getting one sorted first (or at the same time), such as an Employment Contract.

How To Draft A Secondment Letter Template (Step-By-Step For Employers)

If you’re creating a secondment letter template for your business, you’ll usually want a repeatable structure that you can adapt to different roles and timeframes.

1) Start With The Basics Of The Arrangement

In plain English, set out:

• the employee’s name and current role
• the host team/business unit/entity (if applicable)
• the secondment role title (or a description of the temporary duties)
• the start date and end date (or review date)

Clarity upfront reduces misunderstandings later, particularly where a secondment is used as a trial for a new position.

2) Confirm What Stays The Same

A secondment is temporary, so it helps to explicitly state what is not changing, such as:

• the employee remains employed by your business (if that’s the case)
• continuity of service is maintained
• existing policies still apply (or identify which ones do)

If your business has workplace rules in a handbook or policy suite, your secondment letter can incorporate those by reference (as long as they are actually provided to the employee and kept up to date).

3) Set Out The Working Details

This is the part employers often leave vague, but it’s the part employees rely on most.

Include details such as:

• reporting line (who the employee reports to day-to-day)
• hours of work and work pattern
• work location (including whether hybrid/remote work is permitted)
• any expected travel and who pays for it

If the secondment involves changing hours or rosters, make sure you consider any award or agreement obligations and keep a paper trail of what’s been agreed.

4) Deal With Pay And Benefits Clearly

Your letter should clearly state whether:

• the employee’s base pay stays the same
• they receive a temporary allowance or higher duties payment
• any bonuses, commissions, or incentives apply during the secondment
• superannuation and leave continue as normal

If you’re changing an employee’s remuneration structure temporarily, spell it out and tie it to dates and conditions (for example, “higher duties allowance applies for the secondment period only”).

5) Include A Practical “Return To Role” Process

One of the biggest risks with secondments is what happens at the end. If you don’t clearly set expectations, disputes can arise about whether the secondment role becomes permanent.

Your template should include:

• the employee will return to their substantive role at the end of the secondment (unless otherwise agreed in writing)
• any process for transitioning back (handover, training, updated reporting lines)
• a review point if the end date is uncertain

If your secondment is being used during a restructure or role redesign, it’s especially important to get the legal framing right so it doesn’t unintentionally create expectations that the change is permanent.

Key Clauses To Include In A Secondment Letter (Australia)

A secondment letter template in Australia should usually include the core operational terms above, plus protective clauses that reduce business risk.

Here are the clauses we typically recommend employers consider, depending on the scenario.

1) Parties And Employment Status (Who Employs The Worker?)

If this is an internal secondment, you’ll usually state that the employee remains employed by your business and their original contract continues to apply, except as varied by the secondment letter.

If there’s a host entity (for example, another company in your group or an external organisation), you’ll want to be very clear about:

• whether the employee remains employed by you (common), or becomes employed by the host (less common)
• who has authority to direct the employee’s work day-to-day
• how conduct, performance concerns, and any disciplinary process will be handled (and by whom)

This is also where it helps to ensure your base employment terms are robust and consistent, supported by proper Workplace Policy documents.

2) Secondment Term, Review Points, And Early Termination

Secondments often change due to business needs. Your letter should cover:

• fixed end date or expected end date
• a review date (for example, at 3 months)
• the right to end the secondment early (with notice) and what happens then

Be careful with notice provisions. If you want to bring someone back early due to operational change, it helps to build in a reasonable process rather than relying on last-minute decisions.

If you’re ending a secondment and returning someone to their substantive role, you generally won’t be terminating employment (so termination notice is a different issue). But if the secondment ends because the employee’s employment is ending, make sure you handle termination properly and document any payment in lieu of notice arrangements correctly.

3) Role Description, Duties, And KPIs

A secondment role can be vaguely defined, especially in fast-moving small businesses. That’s understandable, but you still want to document:

• the broad duties and responsibilities
• any limitations (for example, spending authority, approval requirements)
• performance expectations and how performance will be reviewed

This is particularly important if the secondment is effectively a management role or client-facing role where missteps can impact revenue or reputation.

4) Pay, Allowances, Expenses, And Leave

Include specific and measurable terms, such as:

• base salary/hourly rate during the secondment
• any higher duties allowance (and whether it is pensionable for super)
• who approves expenses and what can be claimed
• how leave requests will be handled (who approves them during the secondment)

For example, you might set out that leave requests must be approved by the host manager but recorded through your payroll system.

5) Confidentiality And Information Handling

Secondments frequently involve access to confidential information the employee wouldn’t normally see, such as pricing, supplier arrangements, customer lists, or product roadmaps.

Your secondment letter should reinforce confidentiality obligations and make it clear that:

• confidential information remains confidential during and after the secondment
• business systems and data must be used in accordance with your policies
• documents must be returned or deleted at the end of the secondment

If the employee will be working with another entity, you should also think about whether an NDA is needed between the businesses, and how confidential information is shared safely.

6) Intellectual Property (Who Owns What The Employee Creates?)

If the secondment involves creating content, code, designs, systems, processes, marketing assets, or training materials, you should address intellectual property (IP) ownership.

In many employment relationships, IP created in the course of employment will belong to the employer, but secondments can blur the lines if a host entity is involved.

In your secondment documentation, consider:

• who owns IP created during the secondment
• whether the host entity gets a licence to use it (if relevant)
• how pre-existing IP is protected (your templates, tools, brand assets)

7) Workplace Health And Safety (WHS) And Policies

If the employee is being seconded to a different worksite, you’ll want to address workplace health and safety responsibilities.

Common issues include:

• who provides the induction and safety training
• who supplies equipment and PPE (if relevant)
• how incidents and hazards are reported

If there is a host business controlling the worksite, it will usually have WHS duties for that workplace. Depending on the structure, you may also retain WHS duties as the legal employer, so it’s important the arrangement clearly allocates practical responsibilities and reporting processes.

8) Conflicts Of Interest And Secondary Employment

Secondments can create conflict risks, especially if the host entity is a client, supplier, or partner.

Your letter can require the employee to:

• disclose actual or potential conflicts
• avoid using your information for any non-approved purpose
• follow directions about how to manage competing duties

If you have broader concerns about outside work, it may also be relevant to check your approach to secondary employment and ensure the employee is not taking on incompatible work during the secondment period.

9) Restraints And Return Of Property

Not every secondment needs restraint clauses (like non-solicitation), but where the employee will be meeting new customers or gaining deeper access to commercial information, it’s worth reviewing whether your existing contract terms are sufficient.

Even if you don’t include restraints in the secondment letter itself, you should include a practical return-of-property clause covering:

• laptops, phones, keys, ID cards
• access cards and passwords
• documents, files, and business records

Common Secondment Pitfalls For Small Businesses (And How To Avoid Them)

Secondments are common, but the disputes we see often come from a few predictable problems. If you’re putting together a secondment letter template, it’s worth designing it to prevent these issues upfront.

Accidentally Turning A Temporary Arrangement Into A Dispute About Role Change

If the secondment is open-ended or repeatedly extended without written confirmation, it can create confusion (and sometimes disputes) about whether the employee’s role has been varied on an ongoing basis.

To reduce this risk, include:

• a clear end date or review date
• a statement that the employee will return to their substantive role
• a requirement that extensions must be agreed in writing

Unclear Management And Escalation Pathways

When reporting lines are unclear, you can end up with:

• conflicting instructions
• poor performance management
• confusion about leave approvals and timekeeping

Your letter should identify who supervises day-to-day work and how issues are escalated back to HR or the employing business owner.

Pay And Entitlement Confusion

Secondments often involve higher duties, overtime, allowances, travel, or temporary changes to hours. Without clear terms, payroll mistakes and disputes can follow.

Be specific about what changes, what stays the same, and how long the change lasts.

Not Aligning The Secondment With Existing Employment Terms

A secondment letter usually varies the employee’s existing employment arrangements. If the letter contradicts the contract, policies, or award-based obligations, it can create compliance risk.

It’s worth checking your base documents, including any contracts and policies, and updating them where needed. If you’re in the middle of broader changes, you may also need to consider how you handle changing employment contracts generally, to make sure your process is lawful and consistent.

Key Takeaways

• A secondment is a temporary reassignment of an employee to a different role, team, location, or entity, and it should be documented clearly even when it’s only for a short time.
• A strong secondment letter template (Australia) should set out the term, duties, reporting lines, location, pay arrangements, and how the employee transitions back to their substantive role.
• Key protective clauses often include confidentiality, IP ownership, workplace health and safety responsibilities, expenses, conflicts of interest, and early termination of the secondment.
• Secondments can create risk if they are repeatedly extended without documentation, if management responsibilities are unclear, or if pay/entitlement changes aren’t properly recorded.
• Secondment terms should fit with the employee’s Employment Contract and workplace policies, and it’s worth getting advice if the secondment involves a host entity or sensitive information.

If you’d like help drafting or reviewing a secondment letter or secondment agreement for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.