Is a leased employee arrangement the same as using an Employer of Record?

They share some surface similarities, but a leased employee model historically developed for different staffing needs and typically offers less individualized customization than an EOR provides.

Why isn't the leased employee model common for skilled India hiring?

It wasn't originally designed for individualized, skilled international hiring the way an EOR is, and offers less flexibility around tailored compensation and role structuring.

What's the joint employer risk with a leased employee arrangement?

The client company's degree of control over daily work can create shared legal responsibility with the leasing agency, a risk that's cleaner to avoid through an EOR structure.

When does a leased employee model still make sense?

For certain domestic staffing scenarios or industries with established staffing agency practices, rather than skilled international hiring specifically.

How does kaam.work differ from a traditional leased employee arrangement?

By offering purpose-built, individualized employment structuring for skilled international hiring in India, rather than the more generic staffing agency model.

Employment Types & Classification

Leased Employee

What is a leased employee?

A leased employee is a worker formally employed by a staffing or leasing agency, but assigned to perform ongoing work for a separate client company, often for an extended period rather than a short-term placement. In this arrangement, the leasing agency handles formal employer responsibilities like payroll and benefits, while the client company directs the leased employee's actual day-to-day work.

How the leased employee model compares to an Employer of Record

At first glance, a leased employee arrangement can sound similar to what an Employer of Record provides, since both involve a third party handling formal employment while the client directs the work. The key differences tend to show up in the specifics, the leasing agency model historically emerged around staffing for domestic labor needs, often blue-collar or administrative roles, and generally provides less flexibility around individualized employment terms compared to how an EOR structures a genuinely tailored employment contract for each specific role and individual.

Why a leased employee model isn't typically used for India-based skilled hiring

For companies specifically seeking to hire skilled technical talent in India, engineers, data scientists, specialized professionals, the leased employee model isn't the typical structure used, since it historically developed for different kinds of staffing needs and doesn't offer the same degree of customization around compensation structure, benefits design, and individual role definition that an EOR relationship provides. An Employer of Record is purpose-built for exactly this kind of skilled, individualized international hiring in a way the traditional leased employee model wasn't originally designed to address.

Joint employer considerations with a leased employee

Companies using a leased employee model need to be mindful of joint employer considerations, since the degree of control the client company exercises over the leased worker's daily activities can, in some circumstances, create shared legal responsibilities alongside the leasing agency. This joint employer risk is one more reason companies focused on skilled international hiring in India tend to gravitate toward the cleaner legal structure an EOR provides, rather than the potentially ambiguous liability split inherent in a leased employee arrangement.

When a leased employee model might still be relevant

A leased employee structure can still make sense for certain domestic staffing scenarios or specific industries where longer-term staffing agency relationships are already well-established local practice. For companies specifically building an international, skilled workforce in India, however, this isn't the typical path, and an EOR generally provides a more purpose-built solution for that specific need.

How kaam.work compares to a leased employee arrangement

kaam.work operates as an Employer of Record specifically designed for skilled international hiring in India, offering the individualized contract structuring, benefits design, and clean legal employment relationship that a traditional leased employee model, built around different staffing needs entirely, typically doesn't provide to the same degree.

Frequently asked questions

Is a leased employee arrangement the same as using an Employer of Record?: They share some surface similarities, but a leased employee model historically developed for different staffing needs and typically offers less individualized customization than an EOR provides.
Why isn't the leased employee model common for skilled India hiring?: It wasn't originally designed for individualized, skilled international hiring the way an EOR is, and offers less flexibility around tailored compensation and role structuring.
What's the joint employer risk with a leased employee arrangement?: The client company's degree of control over daily work can create shared legal responsibility with the leasing agency, a risk that's cleaner to avoid through an EOR structure.
When does a leased employee model still make sense?: For certain domestic staffing scenarios or industries with established staffing agency practices, rather than skilled international hiring specifically.
How does kaam.work differ from a traditional leased employee arrangement?: By offering purpose-built, individualized employment structuring for skilled international hiring in India, rather than the more generic staffing agency model.