The terms temporary work and work contracts are often misinterpreted. The incorrect use of these terms can lead to serious consequences for your company. Employers and employees have to deal with different forms of employment in the modern German labour market. It is therefore necessary to know the individual forms in order to avoid harmful consequences for your company. Here we will make a comparison between temporary work and contracts for work and labour. In doing so, we will emphasise the advantages of temporary work compared to work contracts.
What is the difference between temporary employment and service contracts?
A legally binding work contract is a type of freelance contract. It represents a contract through which the employee is obliged to achieve a certain result. In this case, the employee not only owes the employer certain activities, as is the case with a normal employment contract. Rather, he owes him a finished product. And payment is made once the result has been achieved, such as repairing a computer or building a house. Under this contract, the employee pays his own contributions. Payment for the services under the contract is made directly by the client to the contractor. More about contracts for work >>>
temporary work does not mean a type of temporary work, it is another word for temporary employment or agency work. In the case of temporary employment, the employee concludes a contract with the temporary employment agency. The temporary employment agency pays the employee's salary and is responsible for social security and health insurance. The company and the temporary employment agency have a separate contract with each other. More about temporary work >>>
Is temporary work better than contract work?
It is important to point out that temporary work is not always the better option. Both concepts have their advantages and disadvantages. Which advantages you will use depends on your preferences and the needs of your organisation. Here are some features that make temporary work a better option:
- Temporary work is more of a continuous support rather than contract work. This type of employment offers more flexibility for companies. And for companies with fluctuating workloads, this is the decisive advantage.
- Temporary work gives you direct access to qualified labour. This saves you the lengthy recruitment process. You receive comprehensive support throughout the entire immigration process for foreign labour.
- The administrative burden is significantly reduced with temporary work. The employment agency takes care of all contracts relating to the labour force. This is a great advantage for both companies and employees.
- Temporary workers enjoy a certain degree of security in contrast to labour contracts. During temporary employment, the employment agency takes care of the employee's taxes, social security and health insurance. Employees are also more likely to work in different sectors. This means more work experience in different areas.
When is a contract for work better than temporary work?
The contract for work is more suitable when there is a specialised task and a clearly defined goal to be achieved. It is more predictable. If a project requires specific expertise, specialists can be brought in externally under a temporary employment contract. They complete the task and receive a fixed fee in return.
Contracts for work are therefore particularly advantageous if the company has a fixed budget for the project. This type of contract is more attractive for professionals who require a high degree of independence.
Conclusion
Choosing the right form of employment has a significant impact on your company's performance. Understanding and distinguishing between the various types of employment contract, such as permanent, fixed-term, and temporary staffing agreements is essential. This is to ensure legal compliance and effective workforce planning.
The type of employment you choose depends on the needs of your company, the nature of the work, and the level of flexibility and the control required. Legal requirements play a crucial role when selecting the right type of employment contract. This applies to all, whether it's a permanent position, fixed-term agreement, or temporary staffing arrangement.
Do you still have questions regarding these forms of employment? We from Zeitarbeit International, will be happy to advise you and help you make the right decision. As a leading personnel service provider, we place temporary workers and subcontractors from Poland and Eastern Europe. Get in touch with us!
