All Employment is a Form of Leasing
All Employment is a Form of Leasing
Some employers are hesitant to embrace the concept of “employee leasing”, but why? Keep in mind that all employment is a form of leasing. An employment relationship is a “renting” or “leasing” agreement between an employer and an employee. In fact, the modern concept of employee leasing has a long legal history originating back to the “borrowed-servant doctrine”. Note the similarities below:
Single Employment
- Employee agrees to exchange labor for wage
- Employer is responsible for human resource management
- Employer provides workers compensation
- Employer provides employee benefits
- Responsible for payroll & tax administration
- Employment provided by the core business
Employee Leasing
- Employee agrees to exchange labor for wage
- Employer is responsible for human resource management
- Employer provides workers compensation
- Employer provides employee benefits
- Responsible for payroll & tax administration
- Employment is outsourced to a PEO
If you would like to learn about the differences between the traditional concept of employment, compared to employee leasing, read single employment vs. co-employment.
All Employment is a Form of Leasing | by Mike Smith
