Permatemp : Definition

Definition

Neither of these forms of employment is traditional. A truly "temporary" employee is just that, "temporary." Often such an employee is hired to fill in for an employee out on leave, or to substitute for someone who is ill. Similarly, a "seasonal" employee will normally be hired for a limited time, such as a lifeguard, hired for the summer. The normal practice of temporary employment for an agency is one in which the employees have a close relationship with the agency from whom they receive their pay. Their work may range from day labor to high-priced consulting. The employee may work for one or several companies, and the working periods may be for days or months at a time, but the working periods come about irregularly. Temporary agencies may or may not provide benefits (such as subsidized health care) to their employees. However, it is relatively common for such workers to draw higher pay in exchange for the benefits afforded to the regulars.

Regular, "permanent" employees work for a single employer, and are paid directly by that employer. In addition to their wages, they often receive benefits like subsidized health care, paid vacations, holidays, sick time, and contributions to a retirement plan. Regular employees are often eligible to switch jobs within their companies. Even when employment is "at will," regular employees of large outfits are generally protected from abrupt job termination by severance policies like advance notice in case of layoffs or formal discipline procedures. They may be eligible to join a union, and may enjoy both social and financial benefits of their employment.

The use of permatemps generally thought to be the most abusive, results when a worker classified as "temporary" works alongside regular employees doing similar work for a long period, and by claiming that the employee is only temporary, the employer avoids paying for benefits and employment taxes. The employer also tangentially benefits because it has no responsibility to the employee--permatemp employees can be fired or laid off at any time, as they have no career service protection or seniority. Policies regarding temp workers tend to differ between companies, and range from being regarded as abusive to little different from policies applied to the regular employees. At some companies, temporary employees are ineligible to apply for jobs open to regular employees. On the other hand, other companies use temp arrangements to "test drive" prospective employees. At the end of the contract period, good workers can be retained for another contract period or hired as regular employees, and underperformers can be let go with minimal proceedings.

When a staffing agency is involved, the permatemp may have little relationship with the agency that employs him. The staffing firm may have a national contract with the worksite company. Although the staffing company may be thousands of miles from the job location, it can find job candidates to fill positions through Internet job websites, with interviews occurring over the phone and paperwork filed via fax machine or e-mail. It is not uncommon for a permatemp to never actually meet anyone at the staffing company.

The staffing firm provides a wage to the employee, but may or may not provide any benefits. Often, if benefits are offered, they come at a direct decrease in the pay rate. In order to pay the employee, the staffing firm receives money from the worksite company at an agreed upon bill rate, which can be 50 to 100 percent higher than the pay rate. Bill rates are rarely disclosed to the employee, and the staffing firm may in fact be contractually prohibited from disclosing it.

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