What is employee leasing?

In many companies, there are situations in which additional employees need to be hired, e.g. due to increased production, special orders or seasonal activities. However, temporary employment comes with additional costs for recruiting and retaining an employee. An alternative solution that will help reduce these costs is employee leasing, offered, among m.in, by LeasingTeam. Find out what exactly this service is and what it looks like in practice.

Employee leasing – what is it?

Employee leasing is a form of cooperation based on a relationship between three entities: a company, a temporary employment agency and an employee. A company in need of additional support applies to an employment agency, which, thanks to its resources, allows you to hire employees for a certain period of time or until a specific task is completed. Such a model of cooperation allows for quick replenishment of staff shortages and adaptation of the team to the current needs of the organization.

There are different types of employee leasing, and one of the forms is the so-called individual leasing, in which an employee is delegated to another employer. This is done on the basis of granting the employee unpaid leave in order to perform work for the new employer. This involves the employee’s written consent, as they cannot be sent to work without their approval. In this model, the employment relationship in the parent company is temporarily suspended, and the employee gains experience by performing duties in another company for a certain period of time.

In practice, this is as follows:

Company A, where the employee is employed, comes to an agreement with company B on the conditions under which the employee is to be loaned. Company A shall give the employee unpaid leave, on the basis of Art. 1741. § 1 of the Criminal Code. so that the latter can work for employer B for a certain period of time.

Employee leasing and temporary work

The employee lending service does not have any specific regulations in Polish law, except for the previously mentioned article. The phrase “employee leasing” does not appear in any regulations.

The situation is slightly different in the case of temporary work. In this form of employment, the provisions of the Act of 9 July 2003 on the employment of temporary workers apply. According to her, temporary work is:

„[…} performing for a given employer/user, for a period not longer than specified in the Act, tasks: a) of a seasonal, periodic, ad hoc nature, or b) the timely performance of which would not be possible by employees employed by the employer/user, or c) the performance of which falls within the duties of an absent employee employed by the employer/user”*.

This act stipulates that an employee may perform services for one employer/user for a total of 18 months, but for a period that includes the next 36 months. In the case where a loaned employee replaces a person who is permanently employed in a given company, the maximum working time for one employer is 36 months.

What does this mean for your business in practice? Although the line between these concepts seems thin, the key is employment flexibility. While the temporary work model is precisely regulated by the provisions of the Labour Code, employee leasing gives more freedom in designing cooperation, taking into account flexible forms of employment. As part of employee leasing, most of the administrative duties remain on the side of the agency, such as HR and payroll services or payment of salaries, which significantly reduces the formalities related to employment.

At LeasingTeam, we help you choose the right forms of employee leasing that support effective human resources management and employment planning. Our support minimizes the risk associated with staff turnover and allows you to optimize operating costs. This allows you to react faster to changes in the labor market, especially during periods of increased demand, and more effectively adjust the number of hired employees to current personnel needs. In addition, we provide full support in the field of HR and payroll services and formalities related to employment, relieving your organization of administrative duties. A transparent billing model means that you know exactly how much employee leasing costs and you can better control your budget. It is a solution that combines employment flexibility with operational safety and convenience.

Advantages of employee leasing

Employee leasing is a service that guarantees many measurable benefits to the company. The biggest advantages include:

• relieving the company’s resources – by “renting” an employee, you don’t have to worry about recruitment, salary payments, contributions and other formalities – everything will be taken care of by the selected temporary employment agency,
• flexible employment structure – thanks to a qualified agency, you can adjust the level of employment to the current needs in the company,
• saving time and costs – by deciding to hire an employee through an agency, you save both the time you would need to recruit and keep the employee’s documentation, as well as the money that would have to be spent on the entire process,
• access to specific specialists – the agency has a pool of qualified specialists with the required skills, so you do not have to devote your resources to looking for a person with the desired competencies,
• Try & Hire – you gain the opportunity to check a given employee in the company environment, before hiring him permanently or creating a new position, which further reduces the costs of recruiting him on the labor market,
• guarantee of production continuity – your company is under siege related to orders and you need additional employees practically overnight? The agency provides you with up to several dozen qualified specialists who guarantee punctuality and uninterrupted production.

Employee leasing – when is it worth using it?

Employee leasing works especially well in situations requiring a quick HR response, such as a sudden increase in orders, project implementation or the need to replace employees. This solution is particularly popular in seasonal industries, where the demand for temporary workers changes dynamically. In such cases, employee leasing allows you to quickly acquire the right candidates and verify their competencies without the need to conduct long-term recruitment processes.

It is also worth considering this solution if the company wants to reduce the costs associated with hiring a new employee or test their qualifications before permanent employment. Employee leasing supports the personnel function of the company, providing greater flexibility and cost reduction. In addition, the entrepreneur does not have to worry about employee rights or formalities, as they depend largely on the cooperation model and often remain on the side of the agency.

Is employee leasing profitable?

If you want to quickly find an employee with specific competencies, then employee leasing or temporary work are the perfect solution for you. Using the services of a qualified and professional agency, such as LeasingTeam, guarantees that your company will get the right help when it needs it, and you will not have to worry about formalities. Check out our offer and see for yourself how convenient it is!

If you want to quickly find an employee with specific competencies, employee leasing or temporary work is the perfect solution for you. Using the services of a qualified and professional agency, such as LeasingTeam, guarantees that your company will receive the right help exactly when it needs it. This is not only a time saving, but above all a measurable financial benefit – you replace the rigid costs of employment with a flexible billing model, paying only for the actual effects of the work. Thanks to this, you don’t have to worry about complicated formalities, HR services or recruitment risks. Check out our offer and see for yourself how effectively you can manage your team!

Author of the article

LeasingTeam

Marketing Manager

Doświadczony analityk rynku pracy, specjalizuje się w badaniach nad trendami zatrudnienia i zmianami w strukturze zawodowej. Jego artykuły, publikowane w renomowanych czasopismach branżowych, pomagają czytelnikom zrozumieć dynamikę rynku pracy.