Temporary and Contract Employment Market

Overview of Employment Types

Temporary employment refers to hiring employees for a specific period, often to cover for permanent employees’ absences such as seasonal demands.
Contract employment is a form of temporary employment where individuals are hired for a specific task or project, and the employment concludes upon completion.

Temporary and contract workers are often hired through recruitment agencies. They’re not directly employed by the company they work for, rather by the agency.
Most of these contracts have a specific end date or are ended when a particular project is complete.
Consequently, these roles provide a high degree of flexibility for both employers and employees.
However, they can also be characterised by a lack of job security.

It enables companies to adjust their workforce according to their needs, promoting workforce flexibility.
It reduces companies’ liability as these workers are not considered full-time or permanent employees.
For workers, these types of employment can offer the chance to gain experience in various industries and roles, promoting career diversity.

Job instability and uncertainty can occur, which can lead to worker dissatisfaction and potential decline in work quality.
There are cases where contract employees may not have the same access to certain benefits, like health insurance or paid leave, which are available to full-time employees.
Losing trained workers after contract completion may lead to an interruption of business workflow.

In the UK, temporary and contract employees have the same legal rights as full-time employees after working for an employer for 12 weeks under the Agency Worker Regulations 2010.
Under this regulation, temporary and contract workers should receive the same pay and work conditions as equivalent permanent staff.
Recruitment agencies cannot charge temporary workers a fee for finding them work according to the Conduct of Employment Agencies and Employment Businesses Regulations 2003.

Recruitment agencies play an instrumental role in this market by connecting talented professionals with appropriate temporary and contract opportunities.
They help businesses find the right talent at the right time without hindering productivity.
These agencies also support workers in finding contract opportunities that match their skillset and career goals.
Agencies ensure legal compliance and manage administrative tasks related to temporary and contract employment.