Quote from Lawyer on July 17, 2025, 6:00 am

Secondment, a common practice in modern employment structures, involves the temporary transfer of an employee from their primary employer to another organization or department while maintaining their original employment contract. This arrangement allows businesses to share talent, foster collaboration, and address short-term staffing needs. In Kenya, secondment is increasingly prevalent across sectors such as finance, technology, and public services, driven by globalization and dynamic business needs. This article explores the concept of secondment, its legal framework in Kenya, its advantages and disadvantages, and key considerations for employers and employees.

What is Secondment?

Secondment refers to a temporary assignment where an employee, known as the secondee, is loaned to another organization (the host organization) or a different department within the same organization for a specified period. During this period, the employee typically remains under the employment contract of their original employer (the home employer) but works under the direction of the host organization. The arrangement can last from a few months to several years, depending on the agreement.

In Kenya, secondments are common in scenarios such as intra-group transfers within multinational corporations, project-based assignments, or collaborations between public and private sectors. For example, a Kenyan bank may second an employee to a subsidiary in another country to share expertise, or a government agency may second staff to a private firm for a specific project.

Legal Framework Governing Secondment in Kenya

Secondment in Kenya is governed by a combination of statutory laws, employment contracts, and common law principles. While there is no specific legislation exclusively addressing secondment, several legal instruments provide a framework for its implementation:

1. The Employment Act, 2007

The Employment Act, 2007, is the primary legislation governing employment relationships in Kenya. It outlines the rights and obligations of employers and employees, including terms related to contracts, termination, and workplace conditions. For secondments, the Act emphasizes the need for clear contractual agreements. Key provisions include:

• Section 6: Requires that employment contracts specify the terms of employment, including the duration and nature of work. For secondments, the original employment contract must be amended or supplemented with a secondment agreement detailing the terms of the temporary transfer.

• Section 10: Mandates that any changes to an employment contract, such as those arising from a secondment, must be documented in writing and agreed upon by both parties.

• Section 35: Governs termination and notice periods, which remain applicable during secondment unless otherwise stipulated in the secondment agreement.

2. The Labour Relations Act, 2007

This Act regulates collective bargaining agreements and trade union activities. In cases where secondees are unionized, the terms of secondment must comply with any collective bargaining agreements (CBAs) in place. Employers must ensure that secondment does not infringe on employees' rights to fair treatment or union representation.

3. Common Law Principles

Common law principles, such as the duty of mutual trust and confidence, apply to secondment arrangements. Employers must act in good faith, ensuring that the secondee is not disadvantaged by the temporary transfer. For instance, the secondee's salary, benefits, and job security should be preserved unless otherwise agreed.

4. Secondment Agreements

A secondment agreement is critical to formalizing the arrangement. This document, signed by the employee, home employer, and host organization, outlines:

• The duration of the secondment.

• The roles and responsibilities of the secondee.

• Salary and benefits arrangements (e.g., whether the home employer or host organization pays the salary).

• Reporting structures and supervision.

• Conditions for termination or early return to the home employer.

• Confidentiality and non-compete clauses, if applicable.

In Kenya, secondment agreements must comply with the Employment Act and be clear to avoid disputes. For example, the agreement should specify whether the secondee retains their original benefits, such as pension contributions or medical insurance, during the secondment period.

Advantages of Secondment

Secondment offers numerous benefits for employees, home employers, and host organizations. Below are some key advantages:

For Employees

• Skill Development: Secondment exposes employees to new environments, tasks, and challenges, fostering professional growth. For instance, a Kenyan employee seconded to an international office may gain expertise in global business practices.

• Career Advancement: Successful secondments can enhance an employee's resume, showcasing adaptability and diverse experience, which may lead to promotions or new opportunities.

• Networking: Working with a new team or organization allows employees to build professional networks, which can be valuable for future collaborations or job prospects.

For Home Employers

• Talent Retention: Secondment provides employees with growth opportunities without requiring them to leave the organization permanently, reducing turnover.

• Knowledge Transfer: Secondees often return with new skills, perspectives, and best practices, enhancing the home employer's operations.

• Cost Efficiency: Secondment can be a cost-effective way to manage staffing needs, such as filling temporary gaps without hiring new employees.

For Host Organizations

• Access to Expertise: Host organizations gain access to skilled employees without the long-term commitment of permanent hiring.

• Flexibility: Secondment allows organizations to address short-term staffing needs, such as for specific projects or during peak periods.

• Collaboration: Secondment fosters partnerships between organizations, promoting innovation and shared goals.

Disadvantages of Secondment

Despite its benefits, secondment also presents challenges that require careful management:

For Employees

• Uncertainty: Secondees may face uncertainty about their role or job security upon returning to the home employer, particularly if the secondment is poorly managed.

• Adjustment Challenges: Adapting to a new work environment, culture, or location can be stressful, especially for international secondments.

• Work-Life Balance: Secondments, particularly those involving relocation, may disrupt an employee's personal life or family responsibilities.

For Home Employers

• Loss of Talent: Temporarily losing a skilled employee can strain the home employer's operations, especially if the secondee is critical to the team.

• Administrative Burden: Managing secondment agreements, payroll, and compliance with legal requirements can be complex and time-consuming.

• Risk of Employee Poaching: The host organization may offer the secondee a permanent position, leading to talent loss for the home employer.

For Host Organizations

• Integration Issues: Secondees may struggle to integrate into the host organization's culture or workflows, affecting productivity.

• Limited Commitment: Since secondment is temporary, secondees may lack long-term investment in the host organization's goals.

• Cost Implications: Depending on the agreement, the host organization may bear significant costs, such as relocation allowances or salaries.

Key Considerations for Secondment in Kenya

To ensure a successful secondment, employers and employees must address several practical and legal considerations:

1. Clear Communication

All parties must have a shared understanding of the secondment's purpose, duration, and terms. Transparent communication prevents misunderstandings and ensures alignment of expectations.

2. Legal Compliance

Employers must ensure that secondment agreements comply with the Employment Act, 2007, and other relevant laws. This includes documenting changes to the employment contract and addressing issues such as taxation, work permits (for international secondments), and social security contributions.

3. Cultural and Practical Support

For secondments involving relocation, employers should provide support such as cultural training, accommodation, or travel assistance to ease the transition. This is particularly important for Kenyan employees seconded abroad or to different regions within the country.

4. Performance Management

Clear performance metrics and reporting structures should be established to monitor the secondee's progress. Regular check-ins between the home employer, host organization, and secondee can address any issues promptly.

5. Return Planning

A clear plan for the secondee's return to the home employer is essential. This includes defining their role upon return and ensuring they are reintegrated effectively into the organization.

Case Study: Secondment in Kenya's Financial Sector

Consider a scenario where a Kenyan bank seconds a senior manager to its subsidiary in Uganda for a two-year project to implement a new digital banking platform. The secondment agreement specifies that the manager will remain on the Kenyan bank's payroll but receive a relocation allowance from the Ugandan subsidiary. The manager gains exposure to cross-border operations, while the Kenyan bank benefits from enhanced collaboration with its subsidiary. However, challenges arise when the manager struggles to adapt to the new work culture, highlighting the need for cultural training and clear communication.

Conclusion

Secondment is a valuable tool for fostering professional development, organizational collaboration, and flexibility in Kenya's dynamic employment landscape. However, its success depends on clear legal agreements, effective communication, and proactive management of challenges. By understanding the legal framework, advantages, and potential pitfalls, employers and employees can maximize the benefits of secondment while minimizing risks. For personalized advice on navigating secondment or other employment matters, contact us at +254 716 808 104 or info@lawguide.co.ke.