When a temporary worker is assigned to a client company, the temporary worker is paid their salary by the personnel service provider as part of the fee. But what does this fee depend on and how is it calculated in practice?
Temporary workers and permanent employees of a client company should be treated equally by the client company, as stipulated in the Temporary Employment Act. But how does the principle of equality actually work?
In temporary employment, a personnel service provider assigns a temporary worker to a client company. If the customer has a high demand for personnel, a master vendor can be called in to simplify the procurement of workers.
Temporary workers who belong to companies in certain sectors work under an industry supplement tariff. This grants them the same rights as permanent employees and also regulates minimum conditions for temporary workers.
Temporary workers may only be loaned to a customer by a personnel service provider for a limited period of time. Legal regulations and possible deviations in accordance with collective agreements must be observed in order to avoid sanctions.
The Temporary Employment Act aims to ensure that temporary workers and permanent staff are treated equally. Equal pay is an important principle to ensure fair payment in the personnel leasing industry.
A contract for work and services applies when one company provides a service for another that leads to the creation of a specific work or result, regardless of the time spent on it.
Social security contributions are also paid for temporary workers by their employer: the personnel service provider. However, if the latter is no longer able to do so, this can have serious consequences for the hirer.
When there is a high demand for temporary staff, independent recruiting can be costly and time-consuming. A neutral vendor acts independently and simplifies the procurement and coordination of the required workforce.
Temp-to-perm (temporary to permanent) describes the process by which a temporary worker is taken on as a permanent employee by the hirer. It is popular because it offers advantages for both the company and the employee.