A radiotelephone includes a multifunctional headset that operates in two different modes. According to a first mode, the headset may be mounted on a radiotelephone body where it serves as a speaker and microphone for the radiotelephone. Also, the headset can be separated from the body of the portable radiotelephone and placed on the head of the user. In this mode of operation, the headset receives and transmits signals from and to the radiotelephone body during a call, thus providing hands-free operation. The headset can be attached to a user's head by an ear clip. The headset and body may include low power RF transceivers. The headset may contain power saving circuitry to minimize power drain from an internal battery. The battery may be recharged whenever the headset is fixed to the radiotelephone.