What Is A Temporary Or Leased Employee?
The definition and the status of a temporary or leased employee can be described simply as employees who do not have the status of common law employees, which are employees who have access to all of the benefits and job security that an employer may provide. This simplified explanation does require elaboration.
A temporary employee, as the name suggests, is usually hired for a pre-determined period. A temporary employee may be hired by the employer directly or through a temporary staffing agency. Temporary workers are covered by the same employment laws as regular or “permanent” workers are. A temporary staffing agency is responsible for withholding all taxes and other funds for the benefits it may provide. If an employer hires the temporary worker, then it is responsible for the necessary payroll withholding. Temporary workers are sometimes mistakenly classified as independent contractors, and the result is the denial of their rights as employees prescribed by the law.
California law has stipulated the requirements for classifying an employee as a temporary agency employee. These requirements include the right of the agency to assign and reassign a worker, but the workers have the right to refuse an assignment and remain on the agency’s hiring list. The agency negotiates with the client employer about working conditions and other applicable work-related matters.The worker’s wages are paid from the agency’s account. The agency has the right to hire and fire workers.
California law also requires that client employers have a shared civil liability with temporary staffing and leasing agencies to ensure the payment of wages and the procurement of worker’s compensation insurance. Client employers are also responsible for work site compliance with occupational and health standards. This means that a client employer cannot avoid its legal duties or liabilities under the Cal/OSHA laws.
Leased employees are employees of employee leasing companies that are often called professional employer companies. The leasing company supplies a company with the entire workforce for extended periods, rather than a defined day-to-day period. The leasing company assumes responsibility for the employee payroll, taxes and other human resources functions. The employer can transferr the responsibilities for human resource and payroll issues to a leasing agency. The employer retains the right to determine job assignments and compensation, and the employer can hire and fire a leased employee, but the leasing company cannot.
One significant difference, among several, is the leased employee feels more like an employee with a stronger connection to the employer. Leased employees also receive more benefits than temporary employees do. A temporary employee does not usually have a strong bond to the client company.
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