Is a Temp Agency Considered an Employer?

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For people who are still looking for their ideal job, a question that often comes up has to do with the difference between accepting direct employment with a company and seeking work through temp agencies. Temp agencies have no shortage of work to offer, so they can keep you employed on a full-time basis, but is a temporary employment agency considered an employer?

Temp agencies provide businesses with a way to fill positions for a specific duration without taking on permanent employees. This can be beneficial for businesses that have seasonal needs or are erratic in their staffing requirements. Temp agencies also provide businesses with access to a larger pool of potential employees who are actively looking for jobs, as well as the flexibility to try out different employees without making a permanent commitment. 

What's the Difference Between Staffing Agencies and Temp Agencies?

Temp agencies are usually companies that provide short-term or temp-to-hire employees to businesses that need extra help. They typically do not require a long application process and can get you placed in a job quickly. However, the temp agency will still screen applicants and usually require some type of testing or training before being placed in a position. The temp agency will also generally be responsible for finding you a new assignment if your current one ends. 

In contrast, permanent staffing agencies are companies that place employees in long-term positions with businesses. The application process is usually more extensive, and placement is not guaranteed. These agencies typically provide more specialized placement services and may also offer other benefits, such as health insurance and retirement planning. 

For Temporary Workers, Temp Agencies are Their Employers

There are several reasons why a temp agency can be considered an employer: 

  • When you pick up jobs through a temp agency, you are considered an assignment employee. 
  • The agency handles your employment paperwork and is responsible for maintaining employment standards. And although records may be done by both the client company and the employment agency, the agency keeps all the records because you can work with them for an extended duration.
  • Your employment relationship with your temp agency continues between work assignments; it doesn't end with the completion of a work assignment.
  • The temp agency records and keeps the number of work hours for assignment employees. And if there are liabilities for the unpaid wages, they fall on the agency.

The Temp Staffing Agency Process

The client company only chooses the temp agency and hires them. Then, they give clear instructions based on their labour and skill needs. 

The temp agency provides the workers according to the specifications given by the client company. The workers come to the client company's premises and work under their supervision. The client company is not responsible for providing any benefits to these workers such as health insurance or paid vacation days. They are also not responsible for workers' compensation if the worker is injured while working on their premises. The temp agency is responsible for all of this. 

The client company pays the temp agency a fee for their services. This arrangement is beneficial for both parties because it allows the client company to get the workers they need without having to worry about any of the additional costs or responsibilities.

The Client Company Provides Instructions to the Temp Staffing Firm 

A client company searches for a staffing agency that matches its industry. They provide the job description(s) and labour needs, and the agency takes it from there. 

The Agency Advertises the Jobs

Temp agencies typically advertise their open positions through their website or other forms of advertisements, such as job boards or classified ads. Once an applicant applies for a position, the temp agency will interview the applicant and determine if they are a good fit for the open position. If the temp agency decides to hire the applicant, they will then contact the company that is in need of temporary workers and arrange for the employee to start work. 

The Agency Reviews the Applications

Temp agencies provide a valuable service to both job seekers and businesses. They serve as a bridge between the two, helping to connect people with the right skills to the companies that need them. The process begins with temp agencies reviewing application forms and scheduling interviews with candidates. Later, a list of potential candidates is presented to the client company's hiring manager. 

From there, it is up to the company to decide who they want to hire. Temp agencies play an important role in matching people with the right jobs, and they are an essential part of the business world.

The Client Company Makes the final decision

The client company may choose to hold additional interviews with qualified candidates, however, most companies trust the agency’s expertise in this regard. As such, they get qualified people after the recruitment and vetting process has been completed, and their work assignment begins immediately.

Let Workker Handle Your Unemployment or Skill Searching Matters

If you're looking for work, signing up with a temp agency (Toronto) is a great way to get your foot in the door. You can try out different types of roles and find what works best for you, and it's a lot quicker than the lengthy process of applying for a permanent position. Temp agencies are a great resource for finding employment, whether you're looking for something short-term or long-term. They can help connect you with companies that are hiring and provide support throughout the application process. 

Whether you're just starting out or you're looking for a change, temp agencies can be a great way to find work quickly and get your career on track. Sign up with Workker now!

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