Let’s Recall What Temporary Employment / Personnel Leasing Is

Hiring personnel for temporary employment, or “on loan,” is a form of contractual relationship in which an employer company provides part of its hired staff to another company - the user. This is why this service is also called “Personnel Leasing.”

What Are the Relationships Between the Parties

In personnel leasing, there are three parties involved in a unique triangular, but not tripartite, relationship.

These are:

1. The worker or employee hired for temporary employment;
2. The employer with whom the employment contract is signed, legally referred to as the enterprise providing temporary work;
3. The company where the work is actually performed, sometimes called the real employer, and legally referred to as the user enterprise.

These three parties form the following pairs of relationships:

• Worker/employee and the enterprise providing temporary work - this is the employment relationship arising from the employment contract for temporary work;
• Worker/employee and the user enterprise - this relates to the actual performance of work; however, the law does not define it as an employment relationship;
• Enterprise providing temporary work and user enterprise - these relationships are essentially commercial and are governed by service contracts for providing workforce.

Let’s examine them in more detail:

Relationship Between the Enterprise-Employer and User Enterprise

• The relationships between the enterprise providing temporary work and the user enterprise are commercial and:
• Are regulated by a contract with an obligational nature;
• The Labor Code regulates the form and minimum required content of this contract;
• The contract must be in writing and include, at minimum, the following labor-related elements:

1. 1. Job titles and the nature of work for which employees will be sent;
   2. Duration of the assignment;
   3. Obligations of the workers or employees toward the enterprise providing temporary work;
   4. Procedures for using leave;
   5. Obligations of the workers or employees toward the user enterprise;
   6. Procedures for exchanging information between the enterprise providing temporary work and the user enterprise regarding salary structure, types and amounts of additional remuneration, and any collective labor agreements in the user enterprise, if applicable;
   7. Deadlines and procedures for reporting work hours and determining the amount of basic and additional remuneration, including overtime and night work;
   8. Type of initial training required for performing temporary work;
   9. Liability for non-compliance;
   10. Other conditions related to the execution of temporary work.

Relationships Between Employees and the Other Two Parties

Employee – Enterprise Providing Temporary Work

• Workers and employees sign an employment contract with the enterprise providing temporary work.
• The employment contract is fixed-term, either for performing a specific task or for replacing an absent employee.

Employee – User Enterprise

• The worker or employee has the right to refuse, in writing, an assignment in the user enterprise if:
• The work does not match their professional qualifications or health condition;
• The assignment is in a different location.
• In case of refusal, the employee must inform the enterprise providing temporary work at the moment of receiving the assignment notice from the employer (enterprise providing temporary work). In this case, the employment relationship is considered not to have arisen.

Workers assigned to temporary work cannot be placed in a less favorable position solely due to their temporary employment compared to other employees performing the same or similar work in the user enterprise, unless the law links certain rights to qualifications or skills.

If there are no employees performing the same or similar work, workers assigned to temporary work in the user enterprise cannot be placed in a less favorable position than other employees working there.

Rights and Obligations of the Worker or Employee Hired for Temporary Work

Rights

A worker or employee assigned to temporary work, while working in the user enterprise, has the right to:

• Wages;
• Leave as provided by the Labor Code;
• Trade union membership;
• Participation in the general meeting of workers and employees in the enterprise;
• Information on all matters related to job performance;
• Participation in collective labor agreements;
• Resolution of collective labor disputes;
• Social, domestic, and cultural services;
• Safe and healthy working conditions;
• Initial and ongoing training appropriate to the position and nature of the work in the user enterprise;
• Social security benefits as per the Social Security Code;
• Other rights directly related to the assigned work.

Obligations

Due to the “dual employer” situation, the worker has rights and obligations toward both parties.

Obligations toward the employer (enterprise providing temporary work):

• The worker must fulfill obligations arising from the employment contract that are not directly related to the actual work performed in the user enterprise. Examples include:
• Loyalty to the employer;
• Not abusing the employer’s trust;
• Not disclosing confidential information, among others.

Obligations toward the user enterprise (where work is performed):

• The worker must fulfill all obligations related to the execution of the assigned work. These include:
• Working hours;
• Completing assigned tasks;
• Following lawful instructions;
• Protecting property;
• Loyalty;
• Confidentiality;
• Compliance with internal rules;
• Coordinating work with other employees and providing assistance as instructed by the employer, etc.

 

Conclusion

Temporary employment is a flexible tool in the labor market, providing opportunities for both employers and employees to meet specific needs and situations. Although the structure may seem complex, this model offers clearly defined rights, obligations, and protection mechanisms for each party. When relationships between the enterprise providing temporary work, the user enterprise, and the employee are properly managed, temporary employment can be an effective and fair solution for all participants.

 

Further Information

Read our article exploring the concepts, specifics, and reasons for personnel leasing.

Learn more about the Personnel Leasing service and what it includes.

Contact us for answers to your questions or submit an inquiry.