When navigating employment relationships, distinguishing between a general employer and a special employer is essential. These categories are especially important in scenarios involving temporary or borrowed workers. Here’s a detailed look at these two types of employers and their roles.
What is General Employer?
A general employer is the primary employer of an employee, responsible for their long-term employment, including hiring, payroll, benefits, and overall management. For example, a company that hires a marketing manager to oversee its campaigns full-time acts as the general employer.
What is Special Employer?
A special employer is an entity that temporarily borrows an employee from their general employer. The special employer takes on control and supervision of the employee for a specific task or period. For instance, if the marketing manager is loaned to another company to help with a short-term project, that company becomes the special employer.
Key Differences between General and Special Employers
|
Aspect |
General Employer |
Special Employer |
|
Control and Supervision |
Long-term control and supervision over the employee |
Control and supervision for a specific task or time frame |
|
Responsibility |
Overall employment terms, including salary, benefits, and career management |
Responsible for the employee's activities and workplace conditions during the loan period |
|
Legal Liability |
Liable for the employee's general employment rights and obligations |
May bear liability for workplace incidents or actions during the loan period |
|
Employment Status |
Maintains the primary employment relationship |
Engages the employee temporarily under specific contractual terms |
|
Consent and Agreement |
Requires consent from the employee for the loan arrangement |
Requires consent and a formal agreement outlining the temporary arrangement |
|
Duration of Relationship |
Typically long-term or permanent employment |
Temporary, often for the duration of a specific project or task |
|
Payment and Benefits |
Provides regular salary, benefits, and other employment perks |
May offer additional compensation for the temporary assignment |
Legal Considerations
- Control Test: A critical factor in determining the type of employer is the right of control. The special employer must have the right to control the employee's work details.
- Liability Issues: Legal liability can arise regarding who is responsible for the employee's actions during the loan period. Typically, the special employer assumes liability for incidents that occur under their supervision.
- Workers' Compensation: Disputes often arise in workers' compensation claims, where the determination of general or special employment affects the outcome.
Conclusion
Understanding the differences between general and special employers helps clarify the responsibilities and legal implications for both types of employers. It ensures that both parties are aware of their roles and can manage their workforce effectively. Moreover employers from all over the gulf are recruiting talent from overseas through Certified Recruitment agencies in Pakistan like Delta International Recruitment Agency. This knowledge is crucial for businesses that frequently engage in temporary or project-based employment arrangements.
Tips for Employers: Recruitment Industry
