Employee Leasing or Staff Leasing

At times a technical and legal term. Defined as a contractual relationship under which (1) the leasing company assigns workers to client locations and thereby assumes responsibility as an employer of the leased workers assigned to the client location; (2) direction and control of the leased employee are the right and responsibility of the leasing company and may be shared with the client consistent with the client’s responsibility for its product or service; (3) the leasing company pays and reports wages and employment taxes of the leased employee out of its own accounts; (4) the employment relationship between the leasing company and its leased employees is intended to be long-term and not temporary; and (5) the leasing company retains the right to hire, reassign and fire the leased employees. (See also: Professional Employer Organization, Professional Employer Services, Employer of Record.)

Source: Staffing Industry Analysts

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