Temporary workers vs. subcontractor employment - differences
We often hear about temporary workers and subcontractors in public discussions. But what exactly does this mean? Both forms have one thing in common: it is a form of employment in which employers hire staff from third parties. The difference between the two, however, is that a contracted worker is employed directly by the hirer and the hirer then passes them on to the temporary worker. The subcontractor, on the other hand, provides services for their client as an independent contractor.
But what are the advantages and disadvantages of these different models?
Temporary work
Temporary work can offer advantages for both companies and employees.
For the company, it means :.
- Flexibility in personnel deployment and the possibility of absorbing short-term bottlenecks or recruiting specialist staff without hiring them permanently.
- Costs can be saved as no social security contributions such as health insurance or pension contributions have to be paid.
For the employee, temporary work often only offers fixed-term employment contracts, but at least there is a chance of being taken on by the hiring company after the end of the assignment with the hiring company. However, there are also criticisms of this model: wages are usually lower than for permanent employees performing the same tasks; there is also often a lack of predictability with regard to assignments and
Subcontractors
Utilization Subcontracting also has its advantages and disadvantages.
Advantages:
A big advantage here is that you are self-employed and therefore have the opportunity to set your own prices. As a subcontractor, you can also have several clients and therefore benefit from greater independence.
However, there are also some disadvantages: The entrepreneur has to pay their own taxes, social security contributions, etc.; in addition, the income is not guaranteed and often fluctuates depending on the workload or number of orders..
Overall, it can be said that both temporary work and subcontracting have their advantages and disadvantages. It depends on what priorities a jobseeker has - whether they prefer to be flexible (temporary workers) or prefer a fixed customer base (subcontractors). However, fair wages and social security such as health insurance, pension etc. are always important.
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Frequently asked Questions
The difference between agency workers and temporary workers is subtle, yet significant. The two terms are often used interchangeably, but there is a subtle difference in the way they are used.
temporary workers are employees who have been hired by a company for a limited period of time. They may have been recruited either directly by the company or via a personnel leasing company. In both cases, they work temporarily for the client company under its supervision and guidance.
Temporary Work on the other hand, refers to the business model of a company - namely hiring out staff to other companies. This means that these employees are not only temporarily employed by the client company but also remain official employees of the placement company.
Both temporary workers and subcontractors are generally more expensive than the company's own employees. This is because they have to be paid higher wages due to their special legal status and also incur additional costs for the employer.
However, if you have to choose between these two options, there are a few aspects to consider: Firstly, temporary workers offer a certain degree of flexibility when workloads fluctuate. You can quickly add or reduce staff - without making long-term commitments.
Subcontractors, on the other hand, usually have specialised knowledge and can therefore be deployed in a targeted manner - for example for specific projects or areas of responsibility. However, the company has less control over the working methods of the subcontractor and its employees; in addition, there is always the risk of bogus self-employment.
Both variants have advantages and disadvantages - depending on the individual situation, these should be carefully weighed up against each other.
A concealed temporary employment contract (also known as a bogus contract for work) exists when a company employs an employee who actually works for another company. The employee is therefore not employed by the actual client, but is provided by a third party. There can be various reasons for this: For example, the commissioning company does not want to employ its own labour force or there are difficulties in recruiting staff. Another possibility is that the costs for direct employment are too high and therefore this is the way to save money.
However, such a practice also harbours risks: In many cases, it violates applicable law - in particular the Temporary Employment Act (AÜG). This stipulates that temporary work is only permitted under certain conditions - for example, if it is a short-term assignment or the hirer has a corresponding licence.