What’s the difference between a recruitment agency and an employment agency? There’s a huge difference!

As a recruitment agency, we often meet applicants, who don’t know the difference between us and an employment agency. However, the difference is much greater than you may think. With an employment agency, the worker is directly employed by the agency. We only help our clients find the best suitable candidates and the employment relationship is then established directly with the given company. This article clearly defines all the differences between recruitment agencies and employment agencies, so that you’re no longer left in the dark.

WOLIP is a recruitment agency. Not an employment agency. 

We had recently met a candidate, who lost interest in the vacant position once he found out we were a recruitment agency, despite being enthusiastic about the job up until then. According to him, he was looking for a change but not through an agency. Therefore, we first had to assure him that we don’t offer agency employment, we merely facilitate offers. We get that this may be a bit mind-boggling, so we have decided to clarify these definitions for you.

What exactly is a recruitment agency?

Pursuant to Act No. 435/2004Coll.,  about employment, a recruitment agency is a private agency that facilitates work and looks for suitable candidates to fill vacant job positions, based on pre-agreed payment terms and conditions. The Ministry of Labour and Social Affairs of the Czech Republic grants permission for facilitating work for remuneration, based on strictly defined conditions. Employers, who utilize the services of recruitment agencies then employ the selected candidates full time as their own employees. A recruitment agency does not employ the candidates, it only facilitates employment for candidates. The main thing is that the candidate becomes an employee of the company, not the agency. Jobseekers don’t pay anything for being registered at a recruitment agency.

How employment agencies work?

Employment agencies employ candidates and so-called “rent” them to companies, where they do the same work as the given company’s core employees. The employee is employed by the employment agency and is then temporarily assigned to work for another legal or physical entity. This means that the temporary employee is an employee of the employment agency and this agency pays him a salary based on comparable conditions. The agency then invoices the company, for which this employee works. In terms of wages, the law states that the temporary employee’s wage must be comparable to that of the core employee’s wage. This means that the agency employees cannot be paid worse than the company’s core employees. On the other hand, the employee may even be paid a bit more. 

Employment agencies usually help companies deal with seasonal fluctuations, periods of increased sick leave, times of sudden increase in production, project matters, covering for someone on maternity leave, and so on. There are obviously many options, but the most important thing to understand is that a recruitment agency only finds candidates, who are then employed by our clients, the companies. Whereas, employment agencies directly employ the candidates. So, there's no need to worry if you’re looking for work by means of a recruitment agency. On the contrary, this may end up being very beneficial for you, especially in terms of the salary.

Do you have any questions? Contact us!