What is secondment: A guide for small businesses

11 Sep 2026 6 MIN READ

What is a secondment?

As a small business owner, you know how valuable skilled employees are. After all, your people are your biggest asset, and the heart of what you do!

Do you have an employee keen to gain experience in a different part of the business? Maybe there’s a budding florist who wants to swap the shopfront for a stint in the back office, or someone who usually works behind the scenes is keen to get more hands-on experience with customers.

Our handy guide helps break it down, so read on to find out everything you need to know!

Definition of a secondment

A secondment is when an employee within your business is temporarily transferred to a different position or role, while still remaining employed by your company.

How a secondment works

Unlike a permanent role change, a secondment involves temporarily assigning an employee to a different role or location while keeping their original contract in place.

Essentially, it’s like the employee going somewhere else to work for a while, then returning to their original role afterward, all within the same company!

Internal vs external secondments

Internal secondment

When an existing employee is temporarily moved to another role within the business, while still under the original employee contract.

External secondment

When an employee is temporarily transferred to another organisation or business under an official agreement, while still being employed by their original employer.

Why do businesses use secondments?

  • Developing employee skills and experience

    A secondment allows employees to gain new skills and valuable knowledge by working in a different area.

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    It can be a win-win for everyone, as it allows business owners to help employees upskill while providing personal development opportunities.

  • Covering temporary staffing gaps

    Some businesses consider employee secondment as a means to cover temporary gaps in resource. While it’s not a long-term solution, it can work for short-term cover.

    Things like maternity leave or paternity leave may leave you an employee down for extended periods. While hiring temporary staff is one option, seconding an existing employee is another!

  • Improving employee retention

    You put a lot of effort into finding the right people for your small business, and once you’ve found them, it’s natural to want to keep them! Offering employees the opportunity to go on secondment gives them the chance to mix up the everyday and get stuck into a new opportunity!

    Research shows that a common reason employees consider leaving a role is due to a lack of challenge or development, which can lead to feelings of stagnation. Secondment can be an effective way to address this, offering employees new experiences and growth opportunities while they remain within the business.

What should employers consider before arranging a secondment?

  • Defining the purpose and objectives

    Before setting up a secondment, there’s a few important details to work out, including:

    • The length of the secondment
    • The purpose of the secondment
    • Goals and expectations
    • How success will be measured

  • Identifying the right employee

    Just like when you initially hire an employee, you want to make sure the person you chose is a good fit for the role.

  • Planning for workload and cover

    If the proposed secondment takes an employee away from their existing role for a set amount of time, it’s possible that you’ll create a resource gap.

  • Setting clear expectations

    It’s important from the get-go that you set clear expectations so that your seconded employee can start off on the right track from day one!

Do I need a secondment agreement?

It’s good practice to have a secondment agreement in place, as it can act as an official record of what has been agreed between both parties.

What a secondment agreement should include

A secondment agreement should include:

  • All parties involved

  • Payments and benefits

  • Terms of employment

  • Length of secondment

  • Reporting/supervision

  • Return terms

  • Goals and objective

External secondments may also include things like non-disclosure or intellectual property right terms and conditions.

  • Please note, this is not a complete list of what should be included, rather an overview of core considerations. For full guidance, visit the gov.uk website.

Employer responsibilities during a secondment

Duty of care and employee wellbeing

Regardless of which role your employees are in, you have a duty of care towards their wellbeing. And just because they may have temporarily switched role, that doesn’t mean that no longer applies.

What happens to your employee contract?

A secondment doesn’t end an employee’s contract. The contract stays active throughout the secondment, as the employee is expected to return to their original job once the secondment finishes.

Employee rights

Because the contract remains in force, their length of service and legal protections, like holiday and redundancy rights, continue as usual. During the secondment, your employee’s core rights stay in place and don’t change. You can find more details here.

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Are you to date with the latest employee law changes in the UK? Our handy guide has you covered!

Find out more

  • What are the risks of a secondment?

    As with any business change, it’s good to be aware of any potential issues that could arise to stay one step ahead!

Unclear roles and responsibilities

Just like with any role within your business, it’s important to clearly define the scope of the role early on to help avoid confusion later. Your seconded employee should be fully aware of exactly what is expected of them, and what tasks are now within their remit.

Don’t assume that because your employee is already familiar with your business and operations that they know everything about the new role. Treat their introduction as you would with any new team member. Don’t skimp on any of the details of what is expected!

Employee relations issues

Secondments can sometimes lead to communication challenges or misunderstandings, especially around the roles and expectations. So, it’s important to clearly communicate the purpose of the secondment by setting goals and keeping the lines of communication open.

Proper planning and transparency help to maintain positive employee relations and ensures that the secondment benefits both the employee, and the business.

Business continuity challenges

Staffing changes due to secondment can sometimes disrupt your daily operations. That’s why it’s helpful to plan ahead. Why not consider cross training your team, or adjusting workflows? Small changes can help keep things running smoothly.

Plan how your business will operate during an unplanned disruption with AXA’s handy business continuity plan template.

  • Legal and compliance considerations

    Although secondments do not change the employee’s contract, there are legal considerations to ensure you’re compliant. As standard, you must adhere to employment laws, data protection, health and safety, and equal opportunity regulations. You can find full guidance here.

FAQs about secondments

Are you getting the most from your employees?

Our handy management tips can help you to get the best out of your employees.

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