The difference between temporary employment and job placement is that with temporary employment, the employer is also the mediator, while with the job placement the employee enters into employment contract directly with the third party, who becomes the employer, while the mediator only connects the employer with the employee.

Temporary employment

Activities regarding temporary employment can only be conducted by the temporary employment agency. The Agency may perform tasks of assigning workers to beneficiaries, provided that this is the single activity of the Agency, and the Agency can start performing this activity only after it is registered according to the special regulation and inscribed in the records of the relevant Ministry.

Temporary employment is an employment based on the contract between the agency and the worker by which the Agency as the employer assigns workers to another employer (hereinafter the beneficiary) for temporary work. Agency can assign workers to beneficiaries in order for workers to perform the same work for a continuous period not longer than one year.

The Agency is obligated to carry out the accounting and payment of salaries, registration of workers with the relevant authorities, also settles all taxes, contributions etc. Salary and other work conditions of assigned worker cannot be less favorable then work conditions of workers employed by the beneficiary on the same jobs.

Agency enters into an employment contract with the employee, and also into a worker assignment agreement with the beneficiary. Agency may enter into an employment contract with the employee for a definite or indefinite period of time. The employment contract and a worker assignment agreement must contain certain statutory clauses. Agency can also assign workers to foreign beneficiaries. In this case the employment contract and a worker assignment agreement must include additional special clauses.

Job placement

Job placement agency can be established as a legal entity (usually Ltd for job placement activities) or as a independent professional activity of a natural person. Before the agency starts to perform this activity, it is necessary to obtain a license to perform this activity and to be registered in the registry of the competent Ministry.

Job placement services can only be charged to the employer and in a fixed amount, not as a percentage of salary.

When the activity of job placement is performed abroad, the agency is obligated to cooperate with the competent international bodies, and is obligated to ensure that the employment and the work abroad are lawful.