How a staffing agency works: models and rules
A staffing agency connects companies looking for workers with people looking for work. In practice it offers two main models: finding a candidate for direct employment with the company (direct hire), and agency employment, where the worker is employed by the agency and temporarily assigned to a user company. This page explains how both work and what rules apply.
The two models
In direct hire the agency finds and pre-selects candidates, and the company enters into the employment relationship with the chosen person itself. In agency employment the agency remains the employer and assigns the worker temporarily to the user company.
Rules and permits
To carry on employment mediation an agency must hold a valid permit under Czech Act 435/2004 Sb. on employment. In agency employment, pay and working conditions must be comparable to those of the user company’s own employees.
The three-way relationship
Agency employment creates a relationship between three parties: the agency as formal employer, the worker, and the user company where the work is performed. Each party has rights and obligations, which are best set out clearly in the contractual documentation.