Working Through an Agency: How Temporary Assignment Works
Working through an agency is a common form of employment used by thousands of people in manufacturing, logistics, and administration. This employment model is known as agency work or temporary assignment.
In practice, this means that the employee signs an employment contract with a staffing agency but performs their work directly for a company that needs workers. The agency handles administration, the employment contract, and salary payments, while the employee works at the client company’s site.
What Temporary Assignment Means
Temporary assignment is when a staffing agency assigns an employee to another company—the so-called user (or client) employer—for a specific period of time.
This type of arrangement is typical for:
- manufacturing jobs
- warehouse and logistics roles
- seasonal work
- short-term projects
It is important to note that the employee is not employed by the company where they work, but by the staffing agency. The agency must hold a valid license issued by the Ministry of Labour and Social Affairs of the Czech Republic.
How Agency Work Operates
Agency employment involves a triangular relationship between three parties:
- 1. EmployeeWorks in a specific job role.
- 2. Staffing AgencyThe legal employer—signs the employment contract and pays the salary.
- 3. User EmployerThe company where the employee performs the work.
The agency assigns the employee to the company on a temporary basis but remains their employer throughout the assignment.
Employee Rights When Working Through an Agency
The Labour Code protects agency workers in the same way as direct employees. This means agency workers must receive at least the same working conditions as comparable in-house employees, including:
- equal or comparable pay
- working hours and breaks
- workplace safety (OHS)
- entitlement to paid leave
- equal treatment in the workplace
Employees must not be disadvantaged because they are employed through an agency.
Responsibilities of the Staffing Agency
The staffing agency is the official employer and must fulfill all obligations arising from the employment relationship.
Key responsibilities include:
- concluding an employment contract with the employee
- arranging a pre-employment medical check
- providing occupational health and safety (OHS) training
- registering the employee for social security and health insurance
- handling all employment-related administration
The agency is also responsible for communication with the employee and resolving any work-related issues.
Who Pays the Salary?
The employee’s salary is always paid by the staffing agency, not by the company where the work is performed.
The agency ensures:
- payroll processing
- timely salary payments
- payslips
- statutory social security and health insurance contributions
If the employee has wage deductions or participates in supplementary pension savings, the agency also handles this administration.
Documents Provided by the Agency
During and after employment, the agency must provide the employee with all necessary documents. These may be required, for example, when applying for a loan, mortgage, or dealing with public authorities.
These include:
- employment contract
- payslips
- income confirmation
- employment record (upon termination)
Why Work Through a Staffing Agency?
Faster access to a job
You can often start working within a few days.
Wide range of job opportunities
Agencies cooperate with many companies across different industries.
Support throughout your employment
The agency assists not only with onboarding but also with administration, documentation, and workplace-related situations.
FAQ: Agency Work
- Is agency work legal?
Yes. Agency employment is a standard and legal form of employment.
However, it is important to choose only verified and licensed staffing agencies. There are still illegal operators on the market who do not comply with labour regulations and may put both employees and client companies at risk.
- Does an agency employee receive the same salary as a direct employee?
Yes. The law stipulates that working conditions and salary must be at least as favorable as those of a comparable employee of the company.
- Who is the actual employer in agency work?
The staffing agency is the legal employer, as it concludes the employment contract with the employee.
- Can an employee transfer from an agency to a client company?
Yes. In some cases, the company may hire the employee directly into a permanent position after a certain period.