The reason this document exists: a person employed by one UAE entity, working day to day at another, is **working on the wrong permit** unless the arrangement is properly structured. It is convenient, extremely common within groups, and it is a contravention.
Secondment
Lending an employee to another entity
The reason this document exists: a person employed by one UAE entity, working day to day at another, is working on the wrong permit unless the arrangement is properly structured. It is convenient, extremely common within groups, and it is a contravention.
| Item | Detail |
|---|---|
| Seconder (the employer) | [NAME], [licence] [NUMBER], [jurisdiction] |
| Host (where the work is done) | [NAME], [licence] [NUMBER], [jurisdiction] |
| Employee | [NAME], passport [NUMBER] |
| Permit held with | [The Seconder] |
| Permit position confirmed with the authority on | [DATE] — see Section 1 |
| Role at the Host | [TITLE AND DUTIES] |
| Period | [DATE] to [DATE] |
| Work location | [ADDRESS] |
| Charge to the Host | AED [AMOUNT] per [month] |
| Employment continues with | The Seconder |
| Gratuity accrual continues with | The Seconder |
1. Confirm the Permit Position First
| # | Question | Answer |
|---|---|---|
| 1 | Does the authority permit this arrangement without a separate permit? | [DETAIL — confirm in writing] |
| 2 | Do the two entities sit in the same jurisdiction? | [Y/N] |
| 3 | Where they differ — mainland to free zone, or the reverse? | [DETAIL] |
| 4 | Is a temporary or secondment work permit available and required? | [Y/N] |
| 5 | Does the Host’s licence cover the work being performed? | [Y/N] |
| 6 | Does the employee’s permit job title match the work at the Host? | [Y/N] |
| 7 | Is this genuinely temporary, or a transfer in substance? | [DETAIL] |
| Conclusion | [Secondment permissible / a permit is required / transfer the employment] |
1.1Do not assume a secondment is permissible because both entities are in the same group. Group relationship is not a permit. Confirm the position with MOHRE or the relevant zone before the arrangement starts, and record the confirmation.
1.2Question 7 is the honest one. An arrangement described as a two-year secondment, where the person never returns, is a transfer dressed as a loan — and the permit, gratuity and settlement consequences of a transfer apply whatever the document says.
5 more pages in the Word file
This is page 1 of the Word document, exactly as it appears when you open it. Fields shown like THIS are placeholders for you to complete.
These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
A person employed by one entity working day to day at another is working on the wrong permit unless the arrangement is properly structured. Being in the same group changes nothing. Confirm the position with MOHRE or the relevant zone in writing before the arrangement starts.
An arrangement described as a long secondment, where the person never returns, is a transfer dressed as a loan. The permit, gratuity and settlement consequences of a transfer apply whatever the document says. Structure it as what it is.
Where the employee is to stay with the Host, the employment with the Seconder ends: gratuity crystallises or the scheme benefit is dealt with, entitlements are due within 14 days, and new employment begins on the Host’s permit. Groups treat this as an extension and leave a benefit unsettled.
Directing day-to-day work is one thing; varying terms, disciplining or dismissing is another. Where the Host does those, the arrangement starts to look like employment by the Host, which is precisely the exposure the document exists to avoid.
WPS payment at the registered salary, health insurance, gratuity accrual or scheme contributions, leave and statutory entitlements all continue with the employer. Any interruption is both a breach and evidence that the employment moved.
Work created during a secondment is valuable and its ownership is the clause most often omitted. Decide whether it belongs to the Host or the Seconder, say so, and require the employee’s assignment to whichever is stated.
Between connected entities it must be arm’s length with documentation, and a recharge at bare cost is the position most commonly adjusted. Determine the cost base and mark-up separately and keep evidence the person actually worked for the Host.
The recharge attracts VAT where the Seconder is registered, and for a free zone Seconder claiming the 0% rate, a recharge to a mainland Host is non-qualifying revenue counting against the de minimis. A secondment can quietly erode a QFZP position.
Where the Seconder is in DIFC or ADGM and the Host on the mainland, personal data reaching the employee at the Host may be a restricted transfer. The employee physically moving does not make the data movement domestic.
The Host controls the premises and the work, so it bears practical responsibility for a safe environment, induction and equipment. Where the work is outdoors, the midday ban applies at the Host’s site.
A secondment changes where someone works and who directs them. Doing it without their written agreement invites a grievance and undermines the argument that terms were unchanged.
The Host sees the accident, the absence or the conduct issue; the Seconder is the employer who must act on it. Without a reporting obligation, the employer learns of problems late and cannot respond properly.
Secondments drift into permanence by inertia. Set a date before expiry to decide: return, extend formally, or transfer the employment properly. Silence produces the worst of the three.
The Host directs the work and creates most of the risk during the secondment, including any claim that it was the real employer. Clause 6.5 puts that exposure where the control sits.
Reflects UAE law current as of {{DATE OF USE}}. Work permit categories including any temporary or secondment permit, transfer procedures, transfer pricing and VAT rules and data protection regimes all change, and free zone, DIFC and ADGM positions differ — confirm with MOHRE or the relevant authority before any secondment.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, corporate secretary, or accountant as relevant) before you rely on it.