Traits of Temporary Jobs
1. Defined Contracts: Temporary jobs come with clearly defined employment contracts specifying the duration, pay rate, responsibilities, and other terms. It provides clarity on the short-term nature of the role. Having set start and end dates outlined in a contract distinguishes temporary jobs from at-will permanent roles. It sets expectations for both the parties.
2. Limited Duration: Most temporary job assignments last less than a year, though some may be extended. Going beyond a year often leads to the employer providing benefits. The finite nature of the arrangement provides flexibility for both employers and workers. Temporary workers can move on to new roles easily.
3. No Benefits: Firms typically do not provide health insurance, retirement plans, vacation days, or other benefits for temporary workers. The short duration makes temporary workers ineligible for these benefits. Not offering benefits like paid time off also reinforces the transient aspect of temporary roles.
4. Workers’ Compensation Eligibility: Temporary employees are eligible for workers’ compensation if injured on the job. However, determining responsibility can get complicated if both a staffing agency and a host company are involved.
5. Work Duration Limits: Many companies have policies limiting temporary workers to not more than 2 consecutive years to avoid misclassification and legal issues. Temporary workers may return after a break in service. Enforcing breaks in service ensures roles don’t inadvertently convert to permanent status.
6. Tax Considerations: Temporary workers are often classified as independent contractors responsible for paying their taxes, including self-employment taxes. Payroll taxes are not withheld, placing the compliance burden on the worker.