The difference between payroll and temporary employment explained

As soon as new staff is needed within your organization, you face the decision of whether you want to do this yourself or prefer to outsource it. Such a process costs you a lot of time and money. Outsourcing can be done to both a temporary employment agency and a payroll agency. But what exactly is a temporary employment agency? How does their service differ from a payroll agency? In short: what is the difference between payroll and temporary employment? We answer this question below, so you can make a well-informed decision.

What is a temporary employment agency?

A temporary employment agency brings supply and demand together. As soon as you need someone, you submit this request to the temporary employment agency. Subsequently, intermediaries search for and select a suitable candidate for your vacancy. They arrange an application, and in no time, you have a new employee at work, who is employed by the temporary employment agency.

What is a payroll agency?

Similar to a temporary employment agency, a payroll agency is an intermediary between your company and job seekers. The recruitment and selection are organized by you, but you can receive advice from the payroll agency. The payroll company takes over the payroll administration and legal employment from you.

Even more difference between payroll and temporary employment?

The recruitment and selection of staff is one of the biggest differences between payroll and temporary employment. This can make your decision simple. If you do not want to recruit and select yourself, you choose a temporary employment agency. If you do want to do this yourself, you choose payroll. But these are not the only differences between both options. To give you a complete picture, we list the biggest differences for you.

	Temporary Employment Agency	Payroll Agency
Recruitment and Selection	The temporary employment agency takes over this task from you.	You handle this yourself, the payroll agency can assist you.
Contact with Your New Employee	Communication about the start date, working hours, planning, and more is taken out of your hands.	For communication about the start date, working hours, planning, and more, you remain responsible.
Working for One or More Companies	After your new employee is hired, he or she remains employed by the temporary employment agency. This means that your employee may work for other companies in a part-time position.	Once you have hired a new employee, he or she usually works exclusively for your company. Only with your explicit permission may an employee possibly work for other companies.
Collective Labor Agreement Employees	For the temporary worker you have working for you, the Collective Labor Agreement for Temporary Workers of the ABU applies.	If you choose our partner Persoonality, then the Persoonality Collective Labor Agreement applies to your payroll employee.
Number of Contracts and Contract Duration	In temporary employment, an employee can be offered multiple temporary contracts, for a maximum duration of up to 5.5 years (phase A and B).	In payroll, an employee can receive a maximum of 3 contracts in 3 years. After that, it is up to you to offer a permanent contract. In the case of the Persoonality Collective Labor Agreement, a deviation is possible.

 

The Influence of the WAB on Temporary Employment and Payroll

The WAB was introduced to bridge the gap between permanent staff and temporary workers. The law came into effect in January 2020 and has impacted both the temporary employment and payroll sectors. For example, payroll employees receive the same legal position and remuneration as employees who are directly employed by the employer. For temporary workers, not only must the six remuneration elements from the ABU Collective Labor Agreement be applied, but also all other employment conditions, including pay during illness and public holidays, vacation days, and training. If you choose temporary employment or payroll, it is important to be aware of the WAB and all the regulations that come with it. Naturally, we at Timing support you in this.

Your advantage with temporary employment through employment agency Timing

You know what an employment agency is and does, and what a payroll agency is and does. With this information, you can make an informed decision in your choice for temporary employment or payroll. If you choose temporary employment through Timing, this means the following benefits for you:

      ✓ flexibility

      ✓ cost savings

      ✓ convenience

      ✓ risk avoidance

Thanks to our extensive network full of potential temporary workers who we know and regularly work for us, we know exactly who can be a valuable addition to your company. 

Want to know more about the difference between payroll and temporary employment?

We can imagine that you want to know more about this topic. We are happy to talk to you to tell you more about it.