Temporary employment contracts specify the type of work and conditions for temporary workers, with the agreement between the employer and employee or an employment agency. The agency acts as an intermediary and handles wage payments, while temporary workers usually receive similar pay to permanent employees but without entitlements.
Employment contracts act as a binding document between the employee – temporary or permanent – and the employer, indicating the type of work and the conditions attached to it. This way, both the employer and the employee understand the terms of employment. In the case of a temporary employment contract, the employer will state in the contract that the employee is only a limited type of worker, with a stated period of time to be spent working for that particular employer. The temporary employment contract, like any other contract, has the very important purpose of listing all the expectations and duties of the two parties in the contract.
In the case of a temporary employment contract, the agreement could be between the employer and the employee or it could be between the employer and the employment provider, in this case an employment agency. Most of the time, companies that don’t want to be bothered with finding temporary employees simply contract the services of temping agencies with the understanding that the employment agency will provide the company with the specific type of human capital that the company requires. In this type of situation, the employment agency will provide the necessary documents and contracts for the employee to sign and also act as a kind of intermediary in the relationship between the employer and the employee.
For example, the temporary employment agency will inform the employee of the duties required of the job, including time to report to the job, the type of job, hours, and benefits. Any wage payments to the employee will be handled by the employment agency, a process that usually involves charging the employer significantly more than what it pays the employee. In any case, the employer considers the employee provided by the agency as a temporary worker and the contract between them is a temporary employment contract.
A permanent worker and a temporary worker usually have similar expectations in terms of basic pay and treatment. This means that the temporary worker will, in most cases, make the same money as a permanent employee in that position would make. The only difference would be that such an employee might not be subject to any vested interest in terms of reward expectations and other types of entitlements accruing to permanent employees by virtue of their longevity in the workplace.
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