Employment Agencies Law and Legal Definition

A private employment agency is a person or corporation that seeks employment positions for clients, in return for a feer from the applicant or from the prospective employer. They may provide employers with permanent, temporary or contract workers. When an employment agency provides temporary or contract jobs, the person doing the work is either an independent contractor or an employee of the agency, rather than an employee of the company for which the work is performed.

An employment agency may determine the amount of the fee charged the applicant for its services, subject to any state regulations. The fee may be payable by the applicant or by the prospective employer, or it may be shared between the two. In the case of contract services or contract labor agreements, the company contracting for the services will usually pay the agency directly for the labor or services performed. The agency then pays the person who performed the work.

Most jurisdictions have statutes regulating the operations and practices of private employment agencies, usually concerning the amount and payment of fees charged for services, and the legitimacy of job offers from employers. Other requirements may relate to listings of employment, specific disclosures as to compensation, working hours, fringe benefits, and the like.