Temporary work, freelance, or fixed-term contract: which is more advantageous for my company?
06 October 2023 · 5 min reading time
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See job offersThe choice between temporary work (intérim), freelancing, and a fixed-term contract (CDD) is an important decision for companies looking to hire. Each of these options has its own advantages and disadvantages, and it is not always easy to determine which one to choose.
Staffmatch explains everything you need to know about these three types of contracts to help you decide which is most advantageous for your company!
Temporary Work (Intérim): Flexibility in Action
Do you have an urgent need? Is your staffing need considerable in volume? Or are you looking for a specific profile and having difficulty finding it?
Temporary work is the choice for you!
If you choose a temporary work contract, you will not be the direct employer of the temporary employee. This role will be assumed by the temporary employment agency, which will establish an assignment contract with the worker. However, you will also need to sign a provision contract, which will specify the reason and duration of the recruitment, the position, and the temporary worker's salary.
The first advantage of the provision contract is that the temporary employment agency (ETT) manages the temporary worker's recruitment process, as well as all the administrative formalities related to their hiring. You will quickly obtain a qualified and operational employee, thus ensuring the continuity of your activity.
The use of temporary work contracts is subject to certain conditions and is intended for specific assignments.
The most recurring reasons for use are:✅ A temporary replacement ✅ Seasonal employment ✅ A customary job ✅ A peak in activity
At the end of the assignment, you pay the ETT's fees, related to the recruitment process and the administrative management of the temporary worker.
The temporary work contract cannot exceed 18 months, unless it is associated with a training cycle. In this case, a duration of 36 months is possible.
The contract is renewable twice, and the probationary period is defined by law as follows:✅ 2 days for a contract with a duration of 1 month or less ✅ 3 days for a contract with a duration between 1 and 2 months ✅ 5 days for a contract with a duration of more than 2 months
By choosing temporary work, you benefit, in addition to the management of the recruitment process and administrative procedures, from great flexibility. The temporary work contract is the only one to benefit from the notion of flexibility. Defined by the Labor Code by article L1251-30, flexibility allows the scheduled end date of the provision contract to be advanced or postponed by one day for every five days worked. For assignments of less than ten working days, this term can be advanced or postponed by two days.
In addition, recruiting temporary staff allows you to test a profile within your company before deciding if they are suitable for a permanent contract. A permanent contract (CDI) can be offered to the temporary worker at the end of their assignment.
This advantage is a real asset, especially in the case of last-minute replacements or during an unforeseen peak in activity.
🚀 Temporary recruitment is ideal if you have a need in the logistics, distribution, industry, but also business services or commerce sectors.
Freelance: Expertise at Your Company's Service
Hiring a freelancer means engaging an independent worker for a specific project.
Freelance recruitment can be done through an agency that connects you with professionals or by directly contacting the service provider.
The freelancer is not considered an employee of the company, and there is no subordinate relationship between them and the company.
A freelancer's remuneration varies considerably depending on the rates set by the service provider, whether daily or hourly. Each freelancer determines their own rates, which you can subsequently negotiate.
As an external employer, you must pay their salary directly to the service provider, which exempts you from the obligation to pay their social security contributions.
☝️Good to know: If the assignment exceeds €5,000, you have a verification obligation. You must therefore verify the declaration and payment of your freelancer's social security contributions every 6 months until the end of the contract.
🚀 Recruiting a freelancer is ideal if you have a specific project in the digital, design, or media content fields.
Fixed-Term Contract (CDD): Stability for a Determined Duration
The fixed-term contract cannot, like the provision contract, be concluded to replace a permanent activity, replace an employee on strike, or fill a position that has recently been the subject of an economic layoff.
The law strictly regulates the succession of CDDs as well as the provisions relating to the duration of the contract and the probationary period, as well as the termination of the contract.
Just as with a temporary work contract, the maximum duration for a CDD is 18 months and is renewable twice. A CDD can exceed this limit only for exceptional orders, where it can extend up to 24 months, or in the context of a Senior CDD, the duration of which is set at 36 months.
The temporary work contract and the CDD have many similarities. Thus, one of their main differences lies in the duration of the probationary period. With a CDD, you benefit from a longer probationary period than with a temporary work contract, namely 1 day per week, up to a maximum of two weeks if the contract duration is less than or equal to 6 months, or 1 month if the contract duration is more than 6 months.
If you decide to recruit a CDD employee, it is important to note that you are the employer of your employee. The recruitment process is managed internally and generally takes longer than with a temporary employment agency, which is not ideal in case of an urgent need for staff.
All administrative formalities and payroll calculation are your responsibility, unlike with temporary work or a freelancer.
Another major difference is that you directly pay your employee's salary, as well as their social security contributions and any bonuses they are entitled to.
🚀 Recruiting on a CDD is ideal if you are recruiting in the tourism and agricultural sectors, and for seasonal jobs.
☝️Good to know: Even though the CDD is the contract most often used for seasonal jobs, temporary recruitment proves to be very advantageous: discover seasonal recruitment in temporary work!
The choice between each type of contract depends on your specific needs. Temporary work offers you great flexibility and simplified management in terms of recruitment and administration, making it a solid choice to meet your company's needs!
Staffmatch supports you throughout your recruitment and human resources management project!
Discover all our advantages for companies 👉https://staffmatch.com/en/client
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