Temporary Employment Defined
When a company hires a new employee, that employment can generally be classified as either temporary, permanent, or contract. A temporary employee is typically hired to fill a personnel gap for a period of time until the gap is filled on a more permanent basis. They can also be entered when a project needs to be completed by a certain deadline and the company simply doesn’t have enough employees to complete the project on time without hiring a temporary worker. It can also occur when the company is too small to hire an employee full-time, so it instead hires a temporary employee to do the job.
One of the hallmarks of temporary employment is that it does not have an established endpoint. For example, if a company hires a temporary employee with a start date of February 5, 2019, it may have no idea when to expect the employee to stop coming to work. Perhaps the employer plans to have the employee work for 250 hours and then stop coming to work. Or temporary employment can be open-ended if a company that hires an employee for a specific purpose does not yet know whether it will need them after the period of time they signed to work. For example, if a company hires a security guard for one week, but then finds that it enjoys better security as a result of that temporary guard’s presence, it may want him or her to stay on in that position permanently.
Although the terms "temporary" and "contingent" are sometimes used interchangeably , they aren’t quite the same. A contingent employee is one who is hired by an employer without an established end date, but for a period of time that can be determined with some certainty. These workers are also sometimes called "at-will" employees because, like a temporary employee, they are hired with no expectation of permanent employment.
The terms "at-will" and "permanent" are often used to describe the opposite of temporary or contingent employment. Permanent employees receive a contract with an established end date. For example—for purposes of this Blog; it is assumed that at-will employment contracts do not exist; these are the kind of contracts that can be terminated by either party for any reason at any time. On the job employment contracts send a message to permanent employees that will make them feel secure in their position: their employment contract gives them reason to believe that they have not only earned the right to work for that company, but that they also have a future there.
Temporary job employment policies with signed agreements make it clear that temporary employees must be prepared to leave the company at any time. While the company may promise to give them a certain number of days or weeks of advance notice, the agreement does not have to include a promised end date for that temporary employment.
Temporary Employment Agreement Essentials
When drafting a temporary employment agreement, there are certain key elements that should be included to ensure clarity and set proper expectations. The first element is the job role of the temporary employee. The agreement should describe, in detail, the job responsibilities and the specific duties expected of the employee during the period of employment. This will help avoid misunderstandings about the scope of the work to be performed and the level of authority that the employee has during the contractual arrangement.
The duration of the employment should also be specifically addressed. If there is an end date to the contractual arrangement, both parties need to explicitly understand when the agreement will be terminated and when the employment will end. However, if the employment is indefinite, then the agreement should clearly state that the temporary employee is employed at will. In this case, the employee could be terminated at any time, for any reason, during the course of employment.
Compensation is another critical element that should be outlined in the temporary employment agreement. The agreement should include whether the employee will be paid hourly, commission, or some other compensation structure, as well as a breakdown of the hourly rate, the commission structure, or any other compensation terms that the parties have agreed upon. In addition, the temporary employment agreement should explain when the temporary employee will be paid. Will payment be made on a weekly schedule, bi-weekly, or monthly? The timing and structure of the compensation should always be clear and easy to understand for the employee.
Finally, the terms of termination must be clearly stated in the temporary employment agreement. If the employment is not indefinite and there is a fixed end date, then there must be a provision that discusses the parties’ obligations after the end date has occurred. The agreement should also address the circumstances under which the temporary employee can terminate employment before the expiration of the agreement. These terms allow for both parties to understand the rights of one another, and to clearly set forth the procedures to be followed in the event that this outcome occurs.
Advantages of Using a Template
One of the most significant advantages of a temporary employment agreement template is the time it saves. Every time you hire a temporary employee in Louisiana, you’re likely to require an employment agreement with that employee. If you don’t have a template, the process of creating a new document seemingly from scratch every time can be extremely tedious. In fact, it can really slow the process down, as you may have to start by brainstorming to decide what you want included in the agreement. When you use a template, all of that is done for you.
The need for consistency is another advantage of using a temporary employment agreement template. Just as you do with each new employee, you want to make sure your expectations and rights regarding the temporary employee are clear and concise at the very beginning of the employment situation. This not only helps protect you in terms of any potential lawsuits, but it also gives you and the temporary employee a point of reference for anything that may come up during the time the employee is working for you. A template will allow you to use the same wording or clauses again and again with each employee, which can help save you the time of having to look up specific contract language along with being a benefit in terms of consistency and professionalism.
An employment agreement template for temporary employees in Louisiana will also help you to ensure that all legal requirements are accounted for. As mentioned, an employment agreement is a legal contract. You need to make sure that you’ve covered everything you need to in order to avoid confusion or problems later on. All you really have to do is enter the information specific to each temporary employee in the spaces provided on the document template, and you’ll have a complete document that meets all of your requirements and can stand up to scrutiny in terms of the law.
Legal Considerations
Employers should take into account a range of legal aspects when drafting a temporary employment agreement template. This includes compliance with applicable labor laws, consideration of worker rights, and other obligations that may arise specific to the terms and conditions expressed in the template. Equally important is the requirement to ensure that the temporary employee is not unlawfully "misclassified" as an independent contractor, which can bring about a host of legal consequences for the organization in the event of an audit or other challenge.
Here, we will comment on some of the key issues.
Most U.S. states and territories have enacted labor laws that dictate standard terms and conditions that must be incorporated in any employment agreement template. For example, a number of states require employers to provide employees written notifications of their pay schedule, overtime compensation, pay rate, etc.
In addition, employers need to consider other worker rights when developing a temporary employment agreement template. For instance, the terms of the agreement must include specific provisions on topics such as working hours, payment terms, allowances for overtime or travel, the terms of assignment, and termination notice and severance. If employees worked for the employer before the assignment period started, pre-existing employment terms would continue. The employment terms might regularly be modified over the course of the successful assignment period, depending on their nature.
Workers can legally raise complaints and grievances, or organize union activities if they are unhappy with the employer, the laws it enforces or the employee rights protection systems in place. Employers must make efforts to address these complaints, or risks facing legal action should the matter escalate. In addition, foreign workers employed on a temporary basis in countries with more protective labor laws are more likely to resort to legal action over a grievance than native workers, so employers should consider the laws of the country in which the employee will be working.
It is essential for employers to consider what compliance issues may arise in the drafting of the temporary employment agreement template. It is most common for employers to use a replacement template for each and every employee and not vary the terms. However, this could trigger a range of legal problems, especially if any changes are not compliant with the relevant labor laws that apply to each individual worker assigned.
Modifying the Template for Unique Situations
When employing temporary workers, it is crucial to use a temporary employment agreement template that caters to the specific needs of a particular organization or industry. Fortunately, this is easily accomplished by adding or modifying specific clauses and terms that align with the organization’s requirements. When doing so, it is important to consider any state or federal requirements and regulations when crafting the temporary employment agreement.
Organizations that utilize temporary employees in specific industries may be required to include additional provisions in their temporary employment agreement template to ensure compliance with federal or state laws. For example, an organization that employs temporary drivers may need to amend their temporary employment agreement template to include a provision requiring temporary employees to adhere to federal Department of Transportation regulations. Similarly , an organization that uses temporary food servers may need to include provisions regarding food safety and handling requirements.
In addition, if an organization uses temporary employees to replace employees on a leave of absence or during a busy season, they may need to customize their temporary employment agreement template to include provisions on the duration of employment and ending of employment, which suit these specific situations.
Using a temporary employment agreement template that specifically addresses the needs of the company can help protect the organization from liability. Having a tailored temporary employment agreement template provides a resource for temporary employees with information on their benefits, compensation, and job expectations, especially when they are not offered orientation sessions or employee handbooks.
Pitfalls to Avoid
Organizations often make several common mistakes when creating or using temporary employment agreements. Addressing these will save time and money and will inevitably protect your business.
Many organizations do not bother to regularly update their employment agreements. Posting is not enough, though. The law is continually evolving, and it is your organization’s obligation to ensure that your temporary employment agreement complies with recent changes.
Similarly, many organizations have not adopted written agreements. Some labor agencies many believe that verbal agreements are sufficient. In fact, written agreements are often times required to receive reimbursement from the government. Others consider verbal agreements a more amicable approach to establishing a temporary employment arrangement. This is not the case. Verbal agreements can be difficult to enforce and leave your organization vulnerable when disputes arise.
Are your organization’s employment agreements too lengthy? Most organizations have not yet come across this "problem." In many cases, agreements are not too long, but they are often too complex – causing not only confusion about what the document requires but also taking up unnecessary time for an applicant to read through such a lengthy document. If applicants are discouraged by your temporary employment agreement, look into some ways to reduce its length or adjust its complexity.
As discussed in my last entry, simple clerical errors can cost you thousands of dollars. Make sure that your temporary employment agreement is typed correctly and reviewed properly by an attorney.
Additional Resources for Employers
Employers should approach the task of creating or adopting a temporary employment agreement template with caution. Although there are a plethora of websites that provide free or inexpensive employment templates, we recommend that a 3d party ensure that templates purchased online are appropriate for the applicable jurisdiction and are appropriate for the position to be hired. Further, templates should be appropriately drafted so they meet a company’s confidentiality and trade secret needs, as well as other state-law limits. For example, the California Labor Code specifically provides that a non-disclosure provision in an agreement is only enforceable to the extent that the information covered by the agreement is not trade secrets (protected under the California Uniform Trade Secrets Act , Civil Code section 3426 et seq.), and does not include information that could be readily ascertainable from public sources. If the provision covers information that is publicly available, the non-disclosure provision may well be void and unenforceable under the California Labor Code.
There are a variety of companies that will provide a custom-written agreement for a reasonable fee. The two most prevalent are Rocket Lawyer and LegalZoom. These services have great features but can carry with them some liability if the document provided is not in conformity with the law. We recommend meeting with a local attorney, or at least having an attorney review the document prior to its use, as most service providers disclaim all liability for the documents they provide.
