Employee Leasing Agreements
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FAQ
A PEO, or professional employer organization, has a different relationship with client companies. Instead of being a firm that leases employees to their clients, a PEO becomes an employer of record for the client's employees. This is known as a co-employment agreement.
For example, leased employees are official employees for the PEO that manages them, while independent contractors operate independently of any employer, and they typically provide a service to a client who pays them directly for those services.
Subscribe now. Employee leasing is an arrangement between a business and a staffing firm, who supplies workers on a project-specific or temporary basis. These employees work for the client business, but the leasing agency pays their salaries and handles all of the HR administration associated with their employment.
For example, leased employees are official employees for the PEO that manages them, while independent contractors operate independently of any employer, and they typically provide a service to a client who pays them directly for those services.
How are leased workers different from freelancers or temporary workers? The differences between leased employees and freelancers majorly lie in the administrative aspects. When a business onboards a leased employee, they remain officially employed with the staffing agency or the PEO with which the firm has partnered.