What international secondment means for an employer
For an employer, international secondment offers the opportunity to ensure that your interests abroad are protected by your own employees. By temporarily loaning one or several of your employees to a foreign entity, you can leverage the talent available to you to help you discover and explore new markets and new possibilities. But any employer considering international secondment also needs to understand the legal implications such a decision involves, as well as what it means for your employees and the way you do business. An employer who uses international secondment intelligently can respond quickly to changes in demand and improve international relations with superlative ease, but it pays to explore the ins and outs beforehand.
What does an employer need to know about international secondment?
In international secondment, the employer does not lose control of his or her employees. The employees in question are simply ‘on loan’, and their contract with their employer is not affected by international secondment. This means employees will retain their contract after their local contract expires, as the company where they work during international secondment is not the official registered employer. Also, international secondment by an employer is not the same thing as permanent relocation – in the latter case, employees pay social security premiums in the country where they work, while those during international secondment are covered only by the social insurance in their native country.
Handling international secondment as an employer
Due to the complexities of international trade and labor law, it can be difficult for an employer to handle international secondment correctly. There are many factors to take into account, and both the local labor inspection office and the company where your employees work during international secondment will verify the employer periodically. In some countries, it is even illegal for an employer to use international secondment without applying for specific documentation and certification (e.g. E101 certificate). Thankfully, Payroll Works’ Dutch Umbrella Company can help you deal with these situations and any obligations that may arise from them. Please feel free to contact us if you want to explore the opportunities international secondment might offer you as an employer. Our professional case managers will gladly help you find your way.