The spotlight on wage portage

Wage portage is proving to be an increasingly popular solution for companies. Due to its characteristics, it differs from temporary work, which also manages a tripartite relationship between a client company, an employee, and the temporary work agency. Here’s a brief explanation of this booming process that convinces many companies to use it.

Wage portage is widely used by companies, especially in the field of information technology. It allows for the involvement of external expertise and provides a legal framework that secures the entire process. It involves an independent worker (commonly referred to as a freelancer) who performs a mission within the company. The wage portage company takes care of all administrative procedures in exchange for a percentage of the revenue generated. Its success is partly due to its flexibility for the client company, which offers the opportunity to benefit from specialized expertise without resorting to a conventional employment contract.

Wage portage, certain advantages for the company

Firstly, the flexibility in management, especially administrative, is a significant advantage: the client company does not have to produce pay slips, as the wage portage company is responsible for issuing them. All administrative procedures are simplified, allowing you to lighten the constraints and costs. Therefore, you do not have to manage potential training to discover these administrative intricacies.

Moreover, you can adjust your workforce according to your needs because you are not bound by an employment contract. This contract is ideal, especially if you do not want to have a subordinate relationship. The wage-earner remains free, saving you time spent managing a relationship with an employee as they are not your own.

The wage portage contract allows for access to highly value-added expertise, which is often difficult to find internally. It does not involve hiring, saving considerable time. The goal is generally to outsource non-strategic tasks. Additionally, you do not need to go through a time-consuming hiring process, and you can obtain the collaboration of an expert in a very short time. You can manage a specific or occasional demand, such as organizing an event or implementing an information system, for example.

The cost assessment is also easy to determine since you are purchasing a service. You will not have additional costs added on. The wage-earner remains responsible for the proper delivery of their service.

You can also use this process to offer your former collaborators help in developing a new activity by becoming their first client. Many companies with spin-off units use this method.

Companies concerned with wage portage

Obviously, not all companies are concerned with wage portage. It generally involves companies with specific occasional needs or those unable to recruit new employees. You can solicit this type of service if you want to outsource part of your services or acquire skills that are not in your field of activity, for example, in coaching or studying new markets. This technique is particularly useful if you do not have a human resources department to manage your increase in workforce.

Exceptions to consider

It should be noted that wage portage is mainly used to carry out intellectual service assignments. Not all professions have access to wage portage, especially for regulated professions in France, such as healthcare professions, personal service activities, trading activities, execution in the construction industry, transport professions, or lawyers, accountants, or bailiffs.

Wage portage or temporary work: what are the differences?

Wage portage involves an independent worker who provides a service to a company. They have an employee status since they sign an employment contract with a wage portage company, which in turn signs a service contract with the client company.

Temporary work or “temping” functions similarly. It involves providing temporary employees to client companies. These employees also receive remuneration from the temporary work agency and sign a mission contract. There is thus a triangular relationship, as there is also a placement contract between the temporary work agency and the company.

At first glance, the difference between the two concepts is subtle, and one may wonder what the differences are between these two contracts, which ultimately seem to be the same thing with different names.

Firstly, in the case of wage portage, it involves an expert in their field who is called upon on a project basis. They perform a mission that is not usual within the company. Their contract can be either a fixed-term or permanent contract. Unlike a temporary worker, they have significant autonomy over their mission, which they negotiate with the client company, both in terms of remuneration and framework. There is no relationship of subordination between the client company and the wage portage worker.

Temporary work is generally used during a temporary increase in activity or to cover for absences and fills a regular position within the company. Their contract is fixed-term, and they do not have autonomy over their mission or remuneration, as it is the temporary work agency that negotiates these terms. Salaries are usually indexed on the company’s tariff grid. Another key point: the temporary worker becomes an employee of the company during their mission, and there is indeed a relationship of subordination with the client company. It should also be noted that temporary work is more expensive for the company than wage portage if the salaries are identical.

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