In a secondment setting, who is your employer? I am confused because you are still employed at your original company but you are doing work for another.

Essentially, the original company is the employer.

That's right! But there are several exceptions to that rule! You should make sure that no integration between the seconde employee and the host organisation... meaning that there should be no duties and responsibilities arising between them. The host should not conduct appraisals or disciplinary processes on the employee and other such things.

I see, so that means that there will be continuity of employment right???

Yup, there is. You will continue to be employed at your original company.

Why does that matter? As long as you get your salary, it doesn't really matter if you're employed with the original or host company right???

Well, it does matter because there are employee rights that have length of service as a condition. So you wouldn't be able to get some of your priviledges if you don't have that continuity.

Ok.... am more confused

So if your employee is doing the work for another company it means that the other company should pay for it right???

But then the secondee is your employee, so you should pay?

ARGH! Who pays your salary in a secondment agreement?

By law, it is the original company who pays for your salary, wages and other costs like insurance and income tax.

But of course, the seconder has the option to ask for reimbursement from the host organisation!

Yup that's right, but you could also set up a "secondment fee" that the host pays to the original company on a regular basis. This will simplify things.