Leasing contracts allow employers to cover temporary bottlenecks in staff, knowing that employees will find additional work through the primary business, even after the lease expires. Business leaders also point out that cooperation with a primary company can lead to lower costs for items such as workers` compensation. Because the main company handles most of the administrative tasks related to workers, the employer has more free time to devote itself to other business tasks such as production planning or marketing. It is possible to use tenants effectively and to comply with the law. This article should help identify staffing problems and provide a useful framework for solving legal problems with the use of independent contractors and temporary workers. To support these management and legal issues, legal issues related to the use of temporary workers can be addressed through the following six-step decision-making process: finally, issues related to the use of self-employed contractors and temporary workers should be dealt with with common sense. If a company worker looks like an employee and is treated, it is likely that the workforce will be considered an employee. A company should also ensure that its non-employee relations policy is clearly communicated and that all employees have a common understanding of concepts such as “contract,” “temporary workers,” etc. Even a company`s nominal monitoring of tenants can subject it to complaints about illegal discrimination against tenants because of the company`s behaviour.

Tenants are likely to be considered employees of the company in the event of a breach of the Fair Labor Standards Act. It is imperative that the leasing company mandated by a company pay its employees in accordance with the law. An employee lease agreement is an agreement between one company and another party, under which the company undertakes to provide the services of some or all of its employees to the other party under certain conditions. As the contractor explains, employee leasing contracts are contracts by which a primary company “leases” employees to a company. In this sense, staff are considered a resource that must be distributed when needed. In these contracts, the main company is responsible for most aspects of employment, such as the reporting of wages and taxes. B, while the company to which employees are leased handles pay cheques and manages the work of employees. Legal issues often arise among temporary workers when the leasing agency does not pay its employees properly or when temporary workers claim unemployment or benefits from the company`s workers. The liability risks associated with a company being considered a common employer can be minimized in several ways. The company should ensure that the leasing agency retains as much control as possible over the tenant`s terms of employment. The leasing agency should be responsible for setting the wages and benefits of temporary workers, all negotiations with its clients, all employment contracts, discipline, benefit counselling, etc. The company should not take action that could interfere with a rental worker`s right to cooperate with other employers.