Staff Leasing (Temporary Employment): Key Features and Legal Framework (2025)

Temporary employment, also known as staff leasing, is a specific form of employment regulated by the Labour Code. In this article, we explain what it involves, what types of contracts are used, and what rights and obligations the temporary employment agency and the user company have.

What is staff leasing and when is it used?

Temporary employment, also referred to as staff leasing or hiring, is a specific way of organizing work under an employment contract.

Reasons for using leased personnel:

There are various reasons to use staff leasing, for example:

• A temporary situation where a one-time increase in workload is expected;
• Performance of a one-off specific task that permanent employees are not equipped to handle due to lack of expertise or current workload;
• Substitution of an employee on extended leave.

What are the specifics of staff leasing?

• Only two types of fixed-term employment contracts are allowed under temporary employment:
  • Until the completion of a specific task;
  • For substituting an absent employee.
• A temporary employment contract may only be offered by an employer registered with the Employment Agency as a temporary work agency.
• The employee performs work not for the employer who signed the contract, but for a third party – the actual user of the labor.

What types of employment contracts are concluded in temporary employment?

• The employment contract is concluded between the worker/employee and the temporary work agency, which is their legal employer.
• It must state that the worker/employee will be assigned to a user enterprise to perform temporary work under its direction and control.
• This type of employment contract is exclusively fixed-term.
• Temporary employment contracts can only be concluded for third-category labor. The law explicitly prohibits temporary employment for first and second-category jobs, as well as in enterprises related to national security and defense or those undergoing a strike.
• The contract must not contain clauses prohibiting the establishment of an employment relationship between the user enterprise and the worker/employee during or after the fixed-term contract.

Start and termination of the assignment

• The employee’s assignment to the user company begins when they start working there.
• The assignment ends:
• Upon completion of the agreed task (if stated in the contract);
• When the substituted employee returns (if stated in the contract);
• Upon termination of the employment contract between the employee and the temporary work agency under the Labour Code;
• If the temporary work agency loses its registration with the Employment Agency.

What are the rights and obligations of the parties in staff leasing?

Obligations of the temporary employment agency:

• Signs and administers the employment contract;
• Issues a written assignment for the employee to perform temporary work at the user company;
• Cannot charge the employee any fees for job placement or contract signing with the user enterprise, before, during, or after the assignment;
• Records and pays the employee's salary;
• Ensures the employee is covered by social and health insurance as per the applicable laws;
• Issues a dismissal order or other document confirming termination of the employment.

Obligations of the user enterprise:

The user enterprise is the place where the employee actually works. Informally, it is sometimes referred to as the “real employer.”

It must:

• Specify the workplace location;
• Provide the employee with a job description and acknowledge receipt with a signature before the work begins;
• Instruct the employee on safe and healthy work practices;
• Track working hours and notify both the agency and the employee with signed confirmation;
• Determine base and additional pay, including for overtime and night work, and inform the agency and employee in writing;
• Issue relevant employment-related documents upon the employee’s request within 14 days;
• Inform the agency about working conditions of comparable employees and any changes to those conditions;
• Provide the employee with information in line with the Health and Safety at Work Act;
• Insure the employee under Article 52 of the Health and Safety at Work Act;
• Share timely and accessible information about available job openings within the enterprise;
• Facilitate access to training opportunities to support career growth and mobility;
• Provide initial and ongoing training relevant to the position;
• Ensure equal treatment and working conditions to those of permanent employees doing the same or similar work, including safe and healthy working conditions.

What is the user enterprise not allowed to do?

• It may not change the position or job description of the employee without notifying and obtaining consent from the legal employer;
• It may not send the temporary employee on a business trip without informing the agency;
• Business trips can only be arranged by the legal employer, though the user enterprise may request such assignment in writing at least 5 business days in advance;
• It may not impose disciplinary measures on the employee – the user enterprise lacks formal employer authority;
• If disciplinary action is needed, the user must immediately inform the agency, describing the misconduct, time, place, and circumstances;
• The user may propose disciplinary measures or request a replacement worker.

If you are an employer considering staff leasing, it is essential to understand the legal requirements and the rights of all parties involved.

For further consultation, feel free to contact us.

More information on the topic:

What does the service include and how does the Staff Leasing process work?

What are the FAQ by the employees?