< full glossary


definition, synonyms and explanation


joint employment, dual employment, shared employment

What is Co-Employment

A co-employment relationship is one in which two employers jointly employ an individual. In this arrangement, each employer is responsible for a portion of the employee’s wages and benefits. This type of arrangement is often used when an employee is simultaneously employed by two companies, such as when a staffing agency places an employee at a client company.

Co-Employment explained

Co-employment is an employer relationship in which two or more employers jointly employ an individual. In a co-employment relationship, the employers share certain responsibilities for the employee. The most common examples of co-employment relationships are when a staffing agency supplies workers to a client company, or when a company uses a professional employer organization (PEO) to outsource HR functions.

There are a few key things to know about co-employment relationships:

  1. The employer-employee relationship still exists between the employee and each employer.
  2. The employers are jointly and severally liable for compliance with employment laws. This means that if either employer violates an employment law, both employers can be held liable.
  3. Each employer is responsible for their own employees, and is not liable for the actions of the other employer’s employees.
  4. The employers must coordinate their efforts to avoid duplication of benefits or conflicting instructions to the employees.
  5. The employers must have a clear understanding of their respective roles and responsibilities in the co-employment relationship.

There are many advantages to co-employment relationships, for both the employers and the employees. For employers, co-employment can provide increased flexibility in staffing, access to a larger pool of potential employees, and cost savings from shared HR functions. For employees, co-employment can provide increased job security, access to benefits and protections from both employers, and the ability to build a career with multiple employers.

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