André van Sprundel

The benefits of project assignments and personnel leasing

Project work, staff shortages or hiring freezes lead to bottlenecks in many companies. Here, cooperation with a provider of personnel hire / contracting can offer the ideal solution.

In the context of a personnel hiring, a searching company commissions the hirer to recruit suitable persons and to employ them. The employment contract thus exists between the hirer and the recruited person (temporary employment contract). However, the recruited person is subsequently employed by the company with the vacancy (rental contract). The person employed is subject to the instructions of the company and is also integrated into this company in terms of work organization. The entire wage administration, as well as the payment of all social insurance contributions, is carried out by the personnel lender, who receives a commission in return. The company therefore receives a temporary employee, for which it pays the temporary employment agency compensation, which includes the employee's salary, all ancillary pay and the temporary employment agency's commission.

In the "contracting" form of cooperation, no persons employed by the personnel hirer are lent, but independent service providers or subcontractors for project work of the searching company are mediated. The prerequisite is that a "contractor" is recognised as self-employed or offers the required services on the market as an AG or GmbH. In addition, the contractor must be free to carry out the project work assigned to him in terms of time and place and the company must not have the right to integrate the contractor into its own organisation in accordance with instructions. Also with this model the account of the services takes place via mediator, who receives for it again a commission. He provides the company with a total invoice and the company is relieved of further administrative efforts. The contractor is compensated directly by the intermediary.

Both personnel hire and contracting thus offer the company an administratively simple variant of being able to dispose of additional personnel at short notice, for a limited period of time or project-related.