Protect Your Business When A Temporary Employee Doesn’t Work Out

Hiring new employees can be hit and miss at times, although when they work out well, it can benefit the company as well as the other employees. Many companies are turning to hiring temporary employees, and they may do it on a seasonal basis or perhaps when there is a need to fill a vacancy temporarily. At times, however, they may not work out and it is necessary for you to let them go. Regardless of whether this happens at the end of their term or if it happens because they are not working up your expectations, it’s important to cover all of your bases and protect your business.

Rights of Temporary Employees

First of all, a temporary employee that works directly for your company is going to have many of the same rights as a full-time or part-time employee. This would include access to certain benefits, such as unemployment benefits and workers compensation. They may not, however, qualify for certain other optional benefits, such as paid vacation or health insurance, depending on how long they have been working for you and how many hours per week they work. It is important to verify what they do qualify for before hiring them, as it will make a difference in what you do when it is time to let them go.

Wrongful Termination

One of the issues that should be considered is the possibility for wrongful termination. These cases can be brought by any employee whether temp or long term, part time or full time. It may be possible that the courts are going to rule in your favor but even if they do, you will be required to pay court costs and other legal fees. It can be a costly process, so it is better avoided.

After the temporary employee has been terminated, you may be legally required to provide certain benefits. This may include, in some cases, continuation of health insurance and unemployment insurance. You also need to be concerned about the timing of the final paycheck, which may include additional funds, if they were eligible for vacation time.

Classify Temporary Employees Correctly

It is also important to classify temporary employees properly. If you classify them incorrectly, it could be costly on a number of levels. This may become evident if they have been terminated, because if they were actually a regular employee and not a temporary employee, they may have been eligible for health insurance, retirement benefits and even stock options. Always verify this information before terminating an employee to ensure that problems are not looming.


Although it can be difficult to terminate the employment of a temporary employee, there are too many benefits associated with hiring them to ignore. Many businesses will use temporary employees to fill full-time positions that may be coming available. Rather than hiring these temporary employees directly, you will find that it benefits you to use a staffing agency to help you stay compliant with current employment laws.

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AUTHOR: HeidiCorrigan

DATE: 2016-08-08 06:17:00

CATEGORY: Employers