Temporary and permanent employment contracts outline the type of employment and conditions for both parties. Temporary contracts can be between the employer and employee or an employment agency, with the agency serving as an intermediary and handling wage payments. Temporary employees generally earn the same pay as permanent employees but may not receive the same entitlements.
Employment contracts serve as a binding document between the employee – temporary or permanent – and the employer, indicating the type of employment and the conditions associated with employment. In this way, both employer and 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 specified period of time to spend working for that particular employer. The temporary employment contract, like any other contract, serves the very important purpose of listing all the expectations and duties of the two parties in the contract.
In the case of a temporary work contract, the contract can be between the employer and the employee, or between the employer and the labor provider, in this case an employment agency. Most of the time, companies that don’t want to worry about finding temporary workers simply hire the services of temp agencies with the understanding that the employment agency will provide the company with the specific type of human capital required by the company. In this type of situation, the employment agency will provide the necessary documentation and contracts for the employee to sign and will also serve as a kind of intermediary in the relationship between the employer and the employee.
For example, the temp agency will inform the employee about the tasks required for the job, including the time to report for work, the type of work, the hours and benefits. Any wage payments to the employee will be handled by the employment agency, a process that usually involves charging the employer an amount significantly greater than what it pays the employee. Whatever the case, the employer considers the employee provided by the agency to be a temporary worker, and the contract between them is a temporary employment contract.
A permanent employee and a temporary employee generally have similar expectations in terms of basic pay and treatment. This means that the temporary employee, in most cases, earns the same money as a permanent employee in that position would earn. The only difference would be that such an employee may not be subject to any vested interests in terms of expected bonuses and other types of entitlements that result in permanent employees by virtue of their longevity on the job.
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