Leased Employees Law and Legal Definition

Leased employees are employees hired by client firms from employee leasing agencies for their own particular works. The leased employees will not be listed in the employers’ pay rolls. Their withholding, depositing, and reporting responsibilities would remain with the leasing agency. The hiring employers would train the leased employees for their specific tasks and retain them for a period of time, usually specified in the lease. The leasing company, also known as a professional employer organization (PEO) enters into a contractual arrangement with the employers. However, the professional employer organization would remain as the official employer. Payments are made by the employer to the leasing company in accordance to mutual agreements. Leasing of employees helps employers to add workers without adding administrative complexity.