We have all heard of flexible employment models. Temporary work” is often used as an umbrella term. However, this is only one variant of flexible employment. Although the flexible employment models are basically similar, there are certain differences that make it possible to tell them apart.
These flexible employment models exist
Flexible employment models refer to a form of employment in which employers are provided with additional staff on a temporary basis. There are different models that are similar but have their own characteristics.
Temporary work
Temporary work is probably the best-known form of flexible employment. This is why this form is often used as a synonym for all other flexible employment models. In temporary work, an agency recruits staff and hires them out to companies on request. This is also referred to as employee leasing. Agencies usually specialize in certain sectors. The personnel remain with the company for a predetermined period of time. This is why this is also referred to as temporary work. Alternatively, it is also possible to agree other clauses on temporary employment. For example, that the contract is terminated in the event of illness. This is not a regular employment contract, but a special form specifically for temporary work. In any case, temporary work is a fixed-term employment relationship. The employee then returns to the pool of the temporary employment agency and can be hired out again if a suitable request comes in. Recording working hours for temporary work is difficult because the temporary workers do not work for the temporary employment agency. They are distributed among other employers and so their working hours must be recorded individually. A fully digital time recording system such as timeCard is of course ideal for this.
Secondment
In essence, the posting process is not very different from temporary work. It is also a type of temporary employment. The process is more or less the same. The differences are in the contract and the actual work. In contrast to temporary work, the contract of the posted worker usually contains a fixed number of hours that is guaranteed. This means that the posted worker remains with the company at least until this number of hours has been reached. A secondment contract can also be concluded for an indefinite period and the contract includes a certain degree of protection against dismissal. A secondment cannot be terminated prematurely like a loan agreement. However, posted workers are not usually intended for short-term employment, but are fully integrated into the company and trained. Further training and career development therefore play a major role in secondments. Postings are often used in areas such as IT, marketing or healthcare. Postings are also not exempt from recording working hours. In this case, however, it is also possible for the local time recording system to be used. Due to the long-term employment of posted workers, it also makes sense to integrate them into the company’s time recording system.
Payroll
With payrolling, workers are not sought via an external service. Instead, companies take care of finding suitable staff themselves. However, they do not hire the staff themselves. They are hired via a payroller, who pays salaries and non-wage labor costs. Payrolling is particularly common in industries that operate on a seasonal basis. In hotels, for example. During the high season, staff are employed via payroll and are thus available at all times. However, they do not have to be paid outside of the season. As already mentioned, the payroller takes over the payment itself. The payroller in turn receives remuneration from the company, which is negotiated in advance. Of course, the working hours must also be recorded for this. How these are settled between the company and the payroller is also decided beforehand.
Consulting
Basically a little out of line, but listed here for the sake of completeness: consulting. These are temporary employees who support a company with their expertise in an advisory capacity. This can be useful for major projects, for example, or if new areas are to be developed. Consulting is a service. Whether the working time should be recorded or a fixed amount agreed in advance for the consultancy depends on the individual case.
Conclusion
There are several variants of flexible employment models. Although they are all somewhat similar, it is the little things that are decisive. Which model makes the most sense for which company depends, among other things, on the industry and the objective. Most flexible employment models deal with fixed-term contracts and temporary employment. In rare cases, however, it is also possible to take on a permanent employment contract.
