Temporary work and outsourcing are two services for companies that answer different needs. Temporary work gives you extra people on your team under the act on employing temporary workers. Outsourcing means handing a process or function to a partner under a contract.

What temporary work means

The temporary employment agency is the formal employer and assigns the worker to the user employer. Under art. 14 sec. 1 of the act on employing temporary workers, the user employer organizes the work to the necessary extent: assigns the position, provides safe and hygienic conditions, and keeps working time records. Details are in the article on duties of the user employer.

Features of the model:

  • the client states how many people and for what period it needs, and the details of the cooperation are set out in the contract with the agency,
  • the worker is entitled to conditions no worse than comparable employees of the client,
  • the act bans assigning a temporary worker to particularly dangerous work and to a position of a person taking part in a strike.

How long can temporary work with one client last at most

An agency can assign the same worker to one user employer for a total of 18 months within 36 consecutive months (art. 20 sec. 1 of the act on employing temporary workers). The limit applies to the worker and user employer pair, so changing agency does not reset it. Exceeding the limit brings a fine for both the agency and the user employer, so it is worth planning staffing in advance. The counting method is in the article on the 18-month temporary work limit.

What outsourcing means

In outsourcing, you hand a process or an entire function to a partner, for example warehouse operations, assembly or packing. The scope of the service, the settlement method and the terms of cooperation are set out in the contract, and you have a single partner responsible for the whole area. The difference between handing over a process and a function is explained in the article process outsourcing vs function outsourcing.

Features of the model:

  • one partner is responsible for the area handed over,
  • the contract sets out the scope of the service and the settlement method,
  • you do not need to handle recruitment and staffing for that area yourself,
  • it is easier to focus your own team on key tasks.

Comparing the two models

FeatureTemporary workOutsourcing
What it isextra people on the client's teamhanding a process or function to a partner
Basis of cooperationthe act on employing temporary workers and the contract with the agencya contract between the two companies
When it fitsstaffing needs that changewanting to hand off a whole area
Time limit for the worker18 months in 36 at one clientas set out in the contract

What to set out in the contract

Whichever service you choose, it is worth setting out in the contract the scope of cooperation, how needs are reported, the settlement rules, contact people on both sides and how reporting works. In outsourcing, the contract also describes the process or function being handed over and the indicators used by both sides to assess the cooperation.

Which model to choose

Temporary work works well when your staffing needs change over the year, for example in season, with new orders or during holiday periods, and you want to supplement your own team. Outsourcing makes sense when you want to hand a whole area, for example packing or warehouse operations, to a partner and focus on your core business. A colloquial term for temporary work is staff leasing, which is not a separate legal model.

If you are not sure which arrangement fits your process, write to us.

Frequently asked questions

Can outsourcing be used for ordinary production staffing?

Yes, if you want to hand a separated area of production, for example packing or line operations, to a partner. The scope and terms of cooperation are set out in the contract. When you mainly need extra people on your own team for busier periods, temporary work fits better.

How does staff leasing differ from outsourcing?

Staff leasing is a colloquial name, usually for temporary work: the agency assigns its workers to the client's team. In outsourcing, the client hands a process or function to a partner under a contract.

Does the 18-month limit apply to outsourcing?

The limit from art. 20 of the act on employing temporary workers applies to temporary work. In outsourcing, the duration and terms of cooperation are set out in the contract between the two companies.

Who is responsible for health and safety in temporary work?

Safe and hygienic conditions at the position are provided by the user employer. In outsourcing, it is worth setting out the division of health and safety duties in the contract with the partner.