Secondment Agreement South Africa

Our detachment agreement can be used by organizations of any size or sector. Since the original employer is at greater risk of posting, we suggest that he or she propose the conditions in the first place. The employer and host must determine who is responsible for the MP`s compensation during the duration of the secondment. If the employer agrees to pay the MP, the employer and host must negotiate the terms and how the host pays the MP`s benefits. The parties must also take into account the responsibility for the payment of the costs incurred by the Member for the provision of services, if any. Contractual agreements between the employer and the Member with regard to old age and medical assistance are not affected unless there is an agreement to the contrary. It is important to identify all compensation and benefit agreements as accurately as possible in order to avoid litigation. Confirms the MP`s secondment to the host organization. Normally, a South African company will enter into a secondment agreement with its foreign holding company or subsidiary (or even an independent party) to provide services to the South African company performed by employees of the foreign company in South Africa. Detachment agreements generally provide that, although employees are seconded to the South African company, these employees remain employed by the foreign company and continue to be paid by the foreign company. The foreign company continues to cover the cost of such a worker`s labour while he is posted to South Africa. The agreement provides, in most cases, that the foreign company is authorized to recover all costs, such as wages and any additional costs associated with them, from the South African company as part of a service fee. The secondment of workers is a recognized practice in South Africa and can be done on the basis of an agreement between the worker, his employer and the organization to which he is seconded.

Depending on the particular circumstances of the detachment, this may lead the worker to qualify as a worker of the two employers participating in the detachment. A single agreement can be reached between the three parties. However, since an agreement can only contain confidential conditions for two of the parties (for example. B The amount that the original employer receives in return for the posting), we have structured the agreement into two documents. If the Member is a citizen or resident of the Republic of South Africa and is seconded to work in South Africa, there are no restrictions on the duration of a secondment agreement. Despite the provisions of the detachment agreement, too long a detachment may create an expectation of employment on the part of the host. It is therefore advisable to set the purpose and duration of the detachment. The agreement may contain provisions for the possible extension of the detachment. By listing the terms of the detachment in a calendar, you have total flexibility over the work that the member will do, and all three parties know what is expected. The section covers the very difficult area of the non-competition clause during and after the posting. If the host has clients similar to the original employer, each party can ensure that the client`s poaching does not occur as an unintended consequence of the posting.

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