Delegation, Secondment, and Transnational Secondment: What's the Difference

As the labor market becomes more globalized and competitive, employers increasingly rely on arrangements that move employees temporarily outside their usual place of work. Delegation, secondment, and transnational secondment are three distinct legal concepts under Romania's Labor Code, each with its own rules on duration, employer responsibilities, and employee rights.

Delegation

Delegation is the temporary exercise, initiated by the employer, of tasks corresponding to the employee's job duties outside their usual place of work. It can be arranged for up to 60 calendar days within a 12-month period, and extended for successive periods of up to 60 days, but only with the employee's consent. An employee's refusal to accept an extension cannot be used as grounds for disciplinary action.

During a delegation, the employee is entitled to reimbursement of transportation and accommodation expenses under applicable law or collective agreement, along with a delegation allowance. Delegation can be arranged within the same unit or to a component unit, subunit, or another unit, and the employer must ensure all legal and contractual conditions are met.

Delegation is a labor law act, not an administrative one. Refusing to comply without justification can lead to disciplinary consequences, including termination, so the delegated employee is expected to carry out the assigned duties and follow the employer's instructions throughout the delegation period.

Secondment

Secondment can be arranged for up to one year, and in exceptional cases can be extended with the agreement of both parties every six months when objective reasons require the employee's continued presence at the receiving employer.

The employer ordering the secondment must ensure the receiving employer fully and timely fulfills its obligations toward the seconded employee; if the receiving employer fails to do so, those obligations fall back on the employer who ordered the secondment.

During the secondment, the employee benefits from whichever set of rights is more favorable, those granted by the original employer or those granted by the receiving employer, and is obligated to follow the receiving employer's requirements and instructions for the duration of the assignment.

Transnational secondment

Transnational secondment refers to a company established in an EU member state or Switzerland posting its employees to another member state's territory as part of a transnational service provision, as defined under Article 2(1)(b) of Law No. 16/2017 and regulated under Article 5 of the same law.

Employers ordering a transnational secondment must:

• Comply with the destination country's applicable legal provisions, including labor laws and rules on wages and working conditions
• Ensure seconded employees receive their rightful entitlements under law and their employment contracts, including reimbursement of transportation and accommodation expenses and a secondment allowance
• Protect employees' health and safety, including compliance with occupational health and safety standards and providing appropriate protective equipment and risk information

Seconded employees, in turn, have the right to benefit from all rights provided by the destination country's law under the principle of favorability, including labor rights, remuneration, working conditions, and social protection more favorable than those in their home country, and are obligated to comply with the destination country's labor legislation and the employer's requirements, including working schedule and code of conduct.

Similarities and differences

All three arrangements involve a temporary change in place of work, and in each case the employer is responsible for ensuring compliance with legal provisions and the employee's rightful entitlements, while the employee retains the right to protection and fair working conditions.

They differ in several important ways:

• Place of work: delegation happens outside the usual workplace within the same territory, secondment involves a temporary workplace change within the same country, and transnational secondment moves the employee to another member state or foreign territory
• Duration: delegation is generally short-term, up to 60 days with possible extension, secondment can last longer depending on legal regulations, and transnational secondment carries no specific duration limit
• Number of employers involved: in delegation and transnational secondment, the employee remains in an employment relationship with their original employer, while secondment involves temporarily working under the authority and supervision of another employer, with the original employment contract temporarily paused until the secondment ends

Why this matters

Delegation, secondment, and transnational secondment are distinct tools for workplace reorganization, each carrying its own rules on location, duration, and responsibilities. Understanding these differences helps employers choose the right arrangement and helps employees understand the rights and obligations that come with each.

Sources: Romanian Labor Code, Law No. 16/2017