How does it work and what are the benefits?20 July 2023
All business leaders could agree that one of the most difficult, challenging and costly processes within an organization is staff management. HR and recruiting of the best specialists, hiring and managing activities costs time and money;it also requires companies to have a well-established human resources department which takes care of everything related to employee management.
There are situations, in every company’s activity,where their business needs more employees than usual, beit seasonal work or production increase. These situations usually involve two of the most popular practices in terms of human resource management: staff leasing and staff outsourcing.
In today’s article we aim to provide some insight on staff leasing or staff lending, make this term clearer for us.
Personnel leasing is a widespread concept in Europe, including Romania. In 2020 it started to be legally regulated in Moldova as well. This concept implies temporary delivery,upon demand of labor force to a partner-company, while candidatesremain employees of the recruitment agency.
There are three participants in the staff leasing process: the recruitment agency, the beneficiary company (customer) and the temporary employee. These three do not sign a single, common contract. Instead, the recruitment agency and the customer sing a staff leasing contract, and the employee gets an individual employment agreement with the recruitment agency.
In other words – those who will work through this system, will be officially employed with the recruitment company, but in fact they will provide services for the customer company which needs staff for a certain period. The recruitment agency supports all of the salary related tax payments. For the provided services, the customer company will be invoiced by the recruitment company according to the previouslyestablished contract.It would include both,the amount intended for the salary and taxes of the employee, as well the commission of the leasing agency. That is why the recruitment agency,will not directly charge any commission from the employee’s salary.
The staff loan is very convenient, primary for the beneficiary company which can have qualified staff, in a short period of time, with few risks and expenses. Staff recruitment is also advantageous for the recruitment agency, because it carries out a specialized economic activity. Last but not least, the temporary employee will not be affected socially nor financially by the entire process.
The staff leasing service of our association targets the foreign market. We work with small and medium-sized companies in Europe and the United Kingdom in order to be able to temporarily employ our citizens abroad.
Staff lending is the most effective solution for companies that need seasonal employees. This service ensures the necessary flow of employees and contributes to the good organization of production. For the employee, this service does not influence in any way the employment agreement nor the possibility to work legally, but it gives them extra security, on the oppsoit.