Temporary employment or Employer of record is a concept that implies assignment of an employee to work with a client, whereby the agency signs an assignment agreement with the client, and an employment contract with the employee, which constitutes a tripartite legal relationship.
Those employees are managed as employees of the agency, not as employees of the client. The agency can take on existing employees of the client, take on employees who work through another agency, or hire new employees, those targeted by the client.
The agreement defines in detail the rights and obligations of the client and the agency, as well as other specifics related to a certain workplace. The employee signs an employment contract with the agency on the basis of legal regulations and thus makes the Employee available to the client. In the same way, the Agency is obliged to hand over a referral letter to the Employee, which must contain the information prescribed by the Labor Law, before sending the Employee to the client.
Benefits of temporary employment:
The monthly agency fee is calculated as a fixed amount or a percentage of the employee’s gross salary, i.e. the total cost of the employee. The agency fee is charged only to the client. All segments of cooperation are discussed in detail with each client, and the best solution for all involved parties is found in an individual approach. The use of the agency work service enables the client to flexibly fill shorter or longer absences such as sick leave, maternity leave, etc., and to optimize seasonal business needs and requirements for specific projects.
The client provides the Agency with basic information about the employee to prepare a comprehensive offer.
Based on the client’s information, the Agency calculates the total cost of wages and benefits.
The Agency and the client sign the assignment contract. The client pays a deposit to the Agency, which is returned to the client at the end of the contract.
The employee submits the necessary documents to the Agency for the preparation of the contract.
The Agency prepares a proposal for the Employment Agreement and sends it to the Client for approval.
The employee signs a work contract with the Agency and receives a Referral.
The Agency registers the employee with the Pension Insurance Institute.
The Agency handles salary calculations and the payment of all taxes to the state.
The Agency provides ongoing support to both the Client and the Worker.
