Temporary and contract employment market

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.

Key Features

  • 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.

Advantages of Temporary and Contract Employment

  • 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.

Disadvantages of Temporary and Contract Employment

  • 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.

Role of Recruitment Agencies

  • 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.