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Recruitment Glossary

Temp agency

A temp agency is a business that finds and supplies people for temporary assignments with client organisations. In many jurisdictions the supplier may contract with, employ or pay the worker while the client directs day-to-day work; legal terminology and allocation of responsibility vary, so the worker, hirer, agency and any payroll intermediary must be identified clearly.

Recruiter Focus

Agency recruiters must obtain accurate assignment information, agree terms with workers and hirers, verify required qualifications and communicate pay, deductions, hours, location, duration, risks and notice before work begins. They should keep payroll, timesheet, availability, extension and assignment-end records consistent across every party.

Why Temp agency Matters

Temporary supply can cover absence, peaks and time-limited capability quickly. Multi-party arrangements can also obscure who pays, supports, supervises and protects the worker, particularly where umbrella companies, subcontractors or long supply chains are involved.

Terms Recruiters Commonly Compare

Recruitment agency

A recruitment agency may introduce people for direct employment or offer several services. A temp agency specifically supplies workers for assignments, often retaining an ongoing contractual or payment role.

Outsourcing provider

An outsourcing provider owns a defined service or outcome. A temp agency supplies workers who usually perform under the hirer’s day-to-day direction.

Recruitment Example

A food producer requests twenty packing workers for eight weeks. The temp agency verifies the site, shift, rate, transport, safety risks and required training; confirms its worker and payroll model; issues assignment information; and gives the client a named contact for attendance, welfare and extensions. The client provides site induction and safe supervision from day one.

One assignment, several responsibilities

A contract chain should never become a support maze. The worker needs named routes for pay, scheduling, workplace safety, adjustments, conduct, personal data and ending or extending the assignment.

Implementation Playbook

  • State the supplier’s legal role and map every intermediary, employer, payer, hirer and workplace supervisor.
  • Collect the work, location, hours, duration, pay, expenses, risks, qualifications and notice needed for an informed assignment decision.
  • Complete identity, eligibility, safeguarding and role-specific checks without allowing urgency to weaken standards.
  • Explain timesheets, payroll timing, deductions, holiday, absence, concerns and assignment-ending routes before start.
  • Track qualifying periods, changed duties, extensions, direct-hire interest and transfer terms under applicable local rules.

Common Mistakes

  • Calling every recruitment agency a temp agency regardless of who engages and pays the worker.
  • Quoting a client charge or umbrella assignment rate as though it were the worker’s gross pay.
  • Assuming the hirer has no safety or workplace responsibilities because the agency supplies the person.
  • Ending an assignment in one system while leaving pay, access or worker communication unresolved.

Metrics to Track

Assignments filled and started Workers paid accurately and on time Safety and welfare concerns resolved Extensions and assignment ends confirmed

Questions Recruiters Ask

Who employs a temp-agency worker?

The answer depends on the contract and local law. It may be the agency, an umbrella or another party, while the client supervises the assignment. Workers should receive an unambiguous explanation.

Does a temp agency pay the worker?

Often the agency or its payroll intermediary does, but supply chains differ. Confirm who pays, the gross rate, possible deductions and payment schedule before accepting the assignment.

Can a client hire a temporary worker directly?

It may be possible under worker choice, local rules and the supply agreement. Review any conversion or transfer terms openly rather than obstructing the worker or making an undocumented promise.

Sources and Review

ATZ CRM Recruitment Editorial Review · Reviewed 2026-08-05

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