Employee leasing is a service consisting in hiring an employee employed by another company. In order to reach this, an appropriate contract should be signed between the employee's rental company and the leasing service company, as well as between the employee and the company that wants to rent it to other entities – the temporary employment agency. In this case, the person seconded by the agency to the company in need of the employee (that is, to the user employer) becomes a temporary employee.
Employee leasing: contract between agency and employee
The employment agency signs a temporary employment contract with the employee/contract of assignment. In doing so, he deals with:
- issues of calculation and payment of remuneration,
- tax evasion,
- additional benefits,
- training of employees who will be hired to perform specific services (only in some cases).
The period of temporary employment shall be included in the length of service. In addition, both parties have a notice period. A company determined to hire an employee does not have to enter into a separate contract with him.
With this form of employee acquisition, the agency and employer-user must remember that the posted employee gives written consent to the performance of work for an entity other than the one by which he was employed. It is equally important to include clauses prohibiting an employee from disclosing, using or disposing of information about the company renting him to third parties.
Employee leasing: contract between agency and employer-user
The contract concluded between the employment agency and the user employer should include the terms of the employee lease, more specifically:
- the type of work carried out by the hired worker,
- issues related to the remuneration of an employee seconded by the company employing him,
- period of work for the employee's rental company,
- possible cancellation of the services of the subordinate employee (the employer-user in many cases may cancel them at any time, however, the agency may propose other terms of the contract preventing the rapid abandonment of hired employees).
The agreement should be formulated in such a way as to safeguard the interests of either party and prepared in writing.
Employee leasing: advantages and disadvantages
Employee leasing has its advantages and disadvantages. The decision to lease must be taken after an analysis of both business benefits and difficulties resulting from the use of this form of employee acquisition.
Employee leasing – disadvantages
Employee leasing does not have many drawbacks, but for the trader they can be important. The disadvantages include the fact that:
- there are no regulations in Polish legislation on the issue of "employee leasing"- you will not find this wording in the legal file, which is the source of uncertainty as to the existence of this form of employee acquisition,
- agencies offering employee leasing services benefit from the provisions of the Law on the employment of temporary workers. A temporary employment worker may not work for a temporary employment agency for more than 18 months over the next 36 months, which is problematic if the work on a particular project is expected to last more than 1.5 years.
- after signing a short-term contract, the employee is aware of the rapid expiry date, which may affect the quality of his work.
- temporary worker often requires implementation and supervision. This requires involvement in the entire process of another employee who could perform other company-important duties during this time.
- persons employed on the basis of cooperation with the temporary employment agency shall have access to technological, technical, commercial and organisational information concerning the employer. When you decide to be a leasing employee, you need to be aware that a person who will not be long connected to the company will have access to important information.
Employee leasing – benefits for business
There is no doubt that employee leasing is also a number of business benefits:
- expenses related to the recruitment and employment of an employee on the basis of an employment contract or even orders that would constitute a large expense for the company are eliminated, so the company renting the employee saves money,
- employee leasing allows the use of the services of employment agencies in a flexible manner, that is, depending on the current needs of the employer,
- employer – the user can acquire qualified staff for an interesting period, for example, to use the help of computer science at the time when he is truly necessary,
- the user's landlord does not have to worry about obligations under labour law, as they are dealt with by the rental agency,
- the employer renting the employee can generally easily give up a temporary agency worker who does not meet his expectations (unless the contract between him and the agency says otherwise),
- employer – the user falls off matters related to the social protection of employees and the calculation of seniority – this is dealt with by the agency,
- facilitates the acquisition of an employee at a time when the company is in financial difficulties and cannot afford to hire a full-time employee,
- temporary employment agencies are engaged in the recruitment of even highly qualified staff, and therefore the employer – the user can gain to the conducted project an outstanding specialist, without the need to devote a lot of financial and time resources to finding it.
A summary of the
Employee leasing is not a form that every business should use. Rather, it should not be decided by a company that wants to build a lasting relationship with an employee or one that processes valuable or sensitive information that may fall into the wrong hands.
Employee leasing is a good form of obtaining an employee for companies in need of temporary support due to increased demand for a product or service, seasonal activity or the implementation of a project that requires additional specialist support. Companies that face temporary financial difficulties and are looking for savings can also benefit from employee leasing.