US Legal Forms
Employee Lease Agreement

Employee Lease Agreement

Category:

Employment - Agreements - Leasing Employees

State:

Multi-State

Control #:

US-00038DR

Format:

Instant download

Description

An employee lease agreement is an agreement between a company and another party whereby the company agrees to contract out the services of some or all of its employees to the other party on specific terms and conditions.

The employees are actually employed by a third-party leasing company, but do their work for the company that contracts with the leasing company. In addition to relieving companies of the administrative responsibilities of managing a workforce, leasing employees can also save a company money by reducing the cost of benefits and insurance, to name just two areas.

This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

Generally, yes. Most leased employees who meet all three conditions detailed above will be considered eligible upon meeting any of the recipient employer plan's age and service requirements.

What is the difference between a PEO and an employee leasing company? PEOs do not supply labor to worksites.PEOs enter into a co-employment arrangement typically involving all of the client's existing worksite employees and sponsor benefit plans for the workers and provide human resources services to the client.

A leased employee is a person who receives a paycheck from one employer, a staffing firm, but is performing services for another company, a recipient company.

Reduced administrative costs. Human resources expertise. Lower cost/higher quality employee benefits. Safety and loss control services. Advice on compliance with employment-related laws. Potentially lower cost workers compensation insurance.

For purposes of the 500-employee threshold, all employees must be counted, whether full-time, part-time, or employed on some other basis (including employees obtained from a temporary employee agency, professional employer organization, or leasing concern).

Leased employees are considered to be employees of the recipient organization for purposes of the requirements set forth in section 414(n)(3)(A) and (B), even though they are common law employees of the leasing organization, unless (i) they are covered by a safe harbor plan of the leasing organization, and (ii) leased