Temporary Staffing Services Agreement

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Temporary staffing services agreements are agreements that protect both a staffing agency that provides temporary workers, and the companies who hire those workers on a short-term basis. The agreement outlines the expectations and obligations of both parties, and is legally binding.

What Is a Temporary Staffing Services Agreement?

  • A temporary staffing services agreement outlines the expectations that a business has for a temporary staffing company, and the obligations, financial and otherwise, owed to the agency providing the temporary workers by the business they help to staff. These agreements protect both the agency and the client's business by standardizing the financial arrangements between the two companies and creating a legally binding document to govern this relationship.

What Hiring Companies Need to Know

  • While using a staffing agency may seem like a way to cut down the time spent on considering candidates in house, businesses should compare the cost of paying additional amounts to an agency before committing to temporary workers, since a percentage of the worker's hourly rate will also need to be paid to the staffing agency on top of the worker's compensation. For those companies considering temp-to-perm hires, using a staffing agency can be a great way to test-drive candidates--with the understanding that if a candidate is made permanent, the agency receives a substantial fee.

Standard Expectations in Temporary Staffing Services Agreements

  • When considering staffing agencies, realize that the advertised rates charged by different agencies are not likely to change much from one provider to another. However, by negotiating with specific members of the temporary staffing services firm, you may be able to obtain better rates for your business.

    The obligations of the client will include the amount and frequency of payments to the staffing agency, while the staffing agency will be required to provide certain levels of service, including reviewing and presenting suitable temporary workers to the client.

Amending a Temporary Staffing Services Agreement

  • Since these agreements are legally binding, they should be carefully reviewed before your company agrees to do business with any given temp agency. If there are portions of the agreement that you do not wish to agree to, bringing this up with your staffing agency can help you reach more acceptable terms. Never sign any agreement without fully understanding your obligations. For temporary staffing, however, there is not likely to be a high degree of flexibility on points such as the amounts paid to the staffing company by the client in exchange for having found the temporary workers.

In-House Temporary Staffing Services Agreements

  • Occasionally, large companies will have their own temporary staffing departments, and in those cases the staffing services agreements may be between the company itself and the temporary workers they hire. These agreements will normally lay out the expectations that the temporary hire may have of the hiring company, and outline the length of their commitment (anywhere from a few days to several months or more).

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