Legal Framework for Temporary Employment Agencies

Temporary Employment Agencies (ETT)

Temporary Employment Agencies (ETT) are entities whose core business is providing temporary workers, hired by the ETT, to another user company.

Requirements for ETT Operation

To operate legally, an ETT must meet the following criteria:

• Prior Administrative Authorization: Authorization is valid for one year upon the initial request for activity commencement. This may be extended, provided a request is submitted three months before the completion of each period.
• Organizational Structure: Possess an organizational structure that allows the ETT to fully assume the obligations of an employer.
• Exclusive Dedication: Devotion exclusively to the activity constituting a Temporary Employment Agency.
• Financial Standing: Lack of outstanding obligations regarding Social Security (SS) or tax relief.
• Special Guarantee: Provision of a special guarantee to meet wage obligations and Social Security contributions.
• Operational History: Must not have been suspended from activity on two or more current occasions.
• Company Name: Inclusion of the phrase "Temporary Work" (or equivalent) in their company name.
• Registration: Registration in the official register of Temporary Employment Agencies, dependent on the Ministry of Labor and Social Affairs.

The ETT Provision Contract

The purpose of the contract is the transfer of workers to provide their services in the user company.

Contract Form and Permitted Use

• Form: The contract must be executed in writing.
• Permitted Contracts: Contracts may be held for the following reasons:
  • The realization of a specific work or service.
  • Circumstantial market demands.
  • The execution of an interim contract (substitution).

Prohibited Contractual Uses

Contracts cannot be held in the following circumstances:

• To replace workers participating in a strike.
• For the conduct of a specific activity characterized by special dangerousness.
• To transfer workers to other Temporary Employment Agencies.
• For posts eliminated in the user company within the preceding 12 months due to:
  • Wrongful dismissal.
  • Contract termination initiated by the ETT.
  • Termination of the employment relationship by collective redundancies.

Contract Duration

Duration depends on the type of contract and the underlying cause:

• Six months (6m) to meet circumstantial market demands.
• Three months (3m) in interim contracts.
• The duration required by the cause that led to the contract.
• When the worker has the opportunity to be hired directly by the user company.

Obligations of the ETT

The ETT has specific obligations toward the temporary worker and the authorities:

• Training: Provide the worker with sufficient and appropriate training relevant to the characteristics of the work to be performed, allocating at least 1% of the wage bill to this purpose.
• Financial Compliance: Meet salary obligations and Social Security contributions.
• Reporting: Refer to the administrative authority that granted authorization a list of the contracts made available.
• Fees: The ETT must not charge the worker any amount for training, selection, or recruitment.

Guarantees and Duties

The ETT must ensure the following guarantees and duties are met:

• Inform the worker about the risks associated with their job.
• Be responsible for the wage and Social Security obligations owed to the worker.
• Inform the workers' representatives about the details of each provision contract.
• Register contracts with the employment office.