Expat management and secondment

Secondment of expatriates from abroad to Germany as part of international staff exchange programmes is taking place ever more frequently. In the business world, an expat is an international professional who is generally seconded to a foreign branch – usually temporarily for a period of between one and three years – by an international company where he or she is employed.

Expat management ensures that secondment processes are consistent, transparent and make good economic sense throughout the company. Ideally, the secondment process is clearly defined in advance by the HR department in the country sending its employees abroad. This involves organising all matters relating to the secondment of employees and, in particular, contract management. This is an important tool in the secondment process. Arrangements must be made concerning the duration of the assignment abroad, the remuneration package, the role, the conditions of return and other aspects.

A distinction is made between two different contract models: the secondment (known in Germany as the Entsendung) and the so-called transfer (known as the Versetzung).

• In the case of the secondment, the home employer remains the active employer even during the assignment abroad, while the organisation where the employee is sent abroad does not draw up a contract with the employee.
• In the case of the so-called transfer, the home employment relationship is suspended for the duration of the assignment abroad, with the expat signing a local, fixed-term employment contract with the organisation in the country of assignment, such as Germany.

Either way, it is important for you as an employer to bear in mind important aspects relating to labour and residence laws.