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Permatemp



As a result of the legal and tax rulings the human resources organizations at many companies changed their policies towards temporary employees. Microsoft, for example, decreed that an individual could not be a temp for more than 365 days, and that individuals must be away from Microsoft for more than 100 days between temporary assignments. Other companies have created policies stating that temporaries can only be assigned to specific projects that last just a few months. Individuals are often prohibited from taking back-to-back assignments within a company.


 


When a company requires a break in service of its permatemps, the result is often that those employees regularly cycle between two companies instead of having back-to-back assignments. Other permatemps plan for breaks and simply use the time as vacation. In most cases they are eligible for unemployment insurance as long as they nominally look for work. This form of permatemping may be attractive to those not wanting a steady, full-time, or year-round position, or not wanting to be committed to one position or one employer.


 


Another arrangement to avoid long-term serial temporary assignments is to "in-source" the work to be done, and not the position. In this arrangement, a company does not hire a staffing firm to fill a position, but rather hires it to do the work. The staffing firm still must hire the permatemp to do the work, still on-site at the corporation.


 


Some of these alternative arrangements barely differ from the pre-Vizcaino tradition of permatemping. Laws and legal rulings continue to define the permatemp-employee relationship. The IRS continues to warn many companies they may owe employment taxes for its temporaries and employee lawsuits over temping repeat the same arguments.


Permatemp job stability

In many surveys, those in permatemp situations readily state that they would prefer to be regular employees of the companies they work for. Not all permatemps agree with this, however--many enjoy the on-again/off-again lifestyle and do not need the guarantee of a stable income.


 


Some permatemps also disagree on the effectiveness of lawsuits and new laws to regulate hiring. Even those who would prefer to be regular employees recognize that the policies instituted after lawsuits make their employment less, not more, stable. Before Vizcaino, many Microsoft permatemps could be certain they would find a new assignment at the end of a project, but mandatory breaks put arbitrary deadlines on how long they can work a new assignment.


 


Other critics note that the constant job turnover mandated by HR policies has the effect of increasing the unemployment rate, which has led to wage deflation in fields with large numbers of permatemps.


 


In the wake of employee lawsuits, most companies have not increased hiring of staff in positions typically held by permatemps. In fact, rather than risk lawsuits, many firms have decided not to hire within their own country at all, instead turning work formerly done by their pools of permatemps over to outsourcing firms in other countries.


Permatemp culture

In corporate culture the presence of permatemps creates a caste system. That permatemps had socially integrated into the corporate culture and that the company had included permatemps in morale events and gift giving was evidence both in Vizcaino and to the IRS that permatemps were common-law employees. Policy enforcement that now restricts permatemps from participating in morale events, employee social clubs, and the like create a second class division between regular employees and permatemps.


 


Many corporations do not hire regular employees to do work they deem low-skilled or unimportant. Permatemps hired to do that work may not get the resources that a regular employee would. Permatemps might be forced to share office space (or cubicles) and phones when regular employees have their own. Employee badges for permatemps might be a different color, and permatemps may be recognized in the corporate e-mail system by dashes or other identifiers appended to their login ID. By declaring positions filled by permatemps to be low-skilled and making it easier for regular employees to identify their co-workers who are permatemps, companies create a sense of elitism in their regular employees. Permatemps, as a group, might be known by epithets such as "dash trash" (referring to an identifier and a dash prepended to an email user account).

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