What is employee leasing?
Employee leasing or staff leasing is a service whereby one entity (often a temporary employment agency) lends its employees to another employer for a specific period of time or for a specific task. The employer is the entity that initiates the hiring out of employees and a written consent of the employee is necessary for hiring out employees.
Temporary work as a type of employee leasing
Most often we talk about employee leasing in the context of an employment agency. An employee employed by a TEA is sent to perform work for a specific User Employer on the basis of a temporary employment contract. In this case we are dealing with a tripartite employment relationship, the parties to which are: the Temporary Employment Agency, the User Employer and the Temporary Employee.
In the case of temporary work, unlike in the case of employee leasing between two entities without the involvement of the TEA, the recruitment and employment process is the responsibility of the employment agency with which the company has signed an employee leasing contract.
The employee leasing service is ideal for industries characterized by high seasonality, as well as during unexpected increases in demand, when large numbers of employees need to be recruited and hired in a short period of time, or during crises, when it is necessary to quickly reduce costs. Making the employment structure more flexible allows you to react quickly to changing trends in the economy.
Employee leasing – costs
From the perspective of the User Employer, the employment of temporary employees allows for budget optimisation and reduction of fixed costs related to employment. An example can be the employment of foreigners under civil law contracts where the costs of employment are significantly lower than in the case of a similar contract for Polish workers. A company using employee leasing services settles accounts with the employment agency for the actually worked man-hours at a fixed hourly rate. It is the employment agency that bears all the costs related to recruitment, employment and settlement of employees and the User Employer receives one invoice for the service of hiring out employees.
Employee leasing – what are the advantages for companies?
The most commonly emphasised benefits associated with employee leasing services include:
- Making the employment structure more flexible – the ability to react quickly to market changes
- No burden on the internal HR department – all HR and payroll matters are on the side of the TEA
- Reduction of the costs of overtime, PFRON and sickness insurance premiums
- Simple budget planning and control process – based on an hourly rate agreed with the TEA
Start benefiting from the employee leasing service. EWL offers comprehensive support for the process of hiring employees for your company.
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