What is employee leasing?

In many companies, there are situations in which additional employees need to be hired, e.g. due to increased production, a special order or seasonal activity. However, temporary employment involves additional costs of recruiting and retaining an employee. An alternative solution that will help reduce these costs is employee leasing, offered, 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 between three entities – a company, a temporary employment agency and an employee. A company that is interested in hiring additional labor applies to a special agency that uses its resources and allows the company to “borrow” the employee they need for a certain period of time or until a specific task is completed.

There is another form of employee leasing, in which one company rents its employee to another company, on the basis of granting him unpaid leave – similar to a temporary agency for a specific period of time or until the completion of a required task. In order for the cooperation to take place, the employee must give written consent to such an exchange – no company can impose it on him. In such a case, the employee’s employment relationship with the parent company is suspended for the time of return from leave.

In practice, it looks like this:

Company A, where the employee is employed, comes to an agreement with company B on the terms and conditions of his rental. Company A gives the employee unpaid leave, on the basis of Article 174¹. § 1. KP. so that he could work for B’s employer for a certain period of time.

Employee leasing and temporary work

The employee rental service does not have any specific regulations in Polish law except for the aforementioned article. The term “employee leasing” does not appear in any of the regulations.

The case 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 by employees employed by the employer/user would not be possible, or c) the performance of which is the responsibility of an absent employee employed by the employer/user”¹.

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

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 – when “borrowing” an employee, you do not have to worry about recruitment, paying salaries, 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 that would be needed to recruit and keep the employee’s records, 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 competences,
• Try & Hire – you gain the opportunity to check a given employee in the company environment, before hiring them permanently or creating a new position, which further reduces the costs of recruiting them on the labor market,
• guarantee of production continuity – your company is experiencing a siege related to orders and you need additional employees practically overnight? The agency provides you with up to several dozen qualified specialists who guarantee timeliness and uninterrupted production.

Is employee leasing profitable?

If you want to quickly find an employee with specific competences, 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!

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.