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.
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.
How to write an employment contract Title the employment contract. Identify the parties. List the term and conditions. Outline the job responsibilities. Include compensation details. Use specific contract terms. Consult with an employment lawyer.
Drawbacks of employee leasing Less control: One of the greatest risks of employee leasing is that you're delegating an important part of your business to an outside company that doesn't know your business as well as you do. You lose control of your processes, systems and benefits.
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.
While leased employees are legally employed by a PEO, they work under the day-to-day management and supervision of the leasing business — much like any other employee.
A Washington employment contract agreement enables employers to create a clear and detailed job description that includes specifics about responsibilities, compensation, and benefits if they are offered.
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.
Examples of work provided by Employee Leasing Companies are Payroll Services, Insurance, Tax Services, and various Personnel Services.