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.

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.