IRMI Main Logo


Home > Glossary

Employee Leasing

Employee Leasing

Definition

Employee Leasing — a permanent staffing method under which an employee leasing company (sometimes called a professional employer organization (PEO) or a labor contractor) provides all or most of its client's employees. The potential benefits associated with this type of arrangement include reduced administrative costs, access to risk management services like safety and loss control, and higher-quality, more cost-effective employee benefits.
Links for IRMI Online Subscribers Only: IWC XII.B

Related Terms

Client Company

In an employee leasing arrangement, an organization that leases all or part of its workforce on a long-term basis from a third party (typically an employee leasing company/professional employer organization (PEO)). The potential benefits for the client company associated with this type of arrangement include reduced administrative costs, access to risk management services like safety and loss control, and higher-quality, more cost-effective employee benefits.

Employee Leasing Company

An organization whose business it is to furnish workers to another entity (usually referred to as the client company) on a long-term basis. Organizations in this industry are referred to by a number of descriptive names. In addition to employee leasing company, commonly used labels include labor contractor and professional employer organization (PEO). The popularity of this type of staffing solution is driven by potential benefits to the client that include reduced administrative costs, access to risk management services like safety and loss control, and higher-quality, more cost-effective employee benefits.

Related Products

IRMI Workers Comp

Your one-stop source for state specific regulations that will help you analyze exposures, determine the policy forms needed, place coverage in the residual marketplace or in a monopolistic state fund, and develop effective cost containment programs. Learn More

Classification Cross-Reference

An IRMI best-seller! This book provides a handy cross-reference for ISO CGL, NAICS, NCCI, and SIC codes. No agent should be without it. Streamlined format helps you find the exact codes you need! Learn More

Blueprint for Workers Comp Cost Containment

Filled with practical suggestions, this book supplies insight and solutions for controlling and even reducing workers compensation costs and premiums. It will pay for itself over and over again. Learn More

Risk & Insurance Package

This is THE reference package for any risk or insurance professional who works in specialty lines. Learn More

Social Media
User ID: Subscriber Status:Free