Tips for Employers

What is the Difference between
General and Special Employer?

July 06, 2024

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Delta International

General, Special, Employer, Difference

What is the Difference between General and Special Employer?

When navigating employment relationships, distinguishing between a general employer and a special employer is essential. These categories are especially important in scenarios involving temporary or borrowed workers. Here’s a detailed look at these two types of employers and their roles.

What is General Employer?

A general employer is the primary employer of an employee, responsible for their long-term employment, including hiring, payroll, benefits, and overall management. For example, a company that hires a marketing manager to oversee its campaigns full-time acts as the general employer.

What is Special Employer?

A special employer is an entity that temporarily borrows an employee from their general employer. The special employer takes on control and supervision of the employee for a specific task or period. For instance, if the marketing manager is loaned to another company to help with a short-term project, that company becomes the special employer.

Key Differences between General and Special Employers

Aspect

General Employer

Special Employer

Control and Supervision

Long-term control and supervision over the employee

Control and supervision for a specific task or time frame

Responsibility

Overall employment terms, including salary, benefits, and career management

Responsible for the employee's activities and workplace conditions during the loan period

Legal Liability

Liable for the employee's general employment rights and obligations

May bear liability for workplace incidents or actions during the loan period

Employment Status

Maintains the primary employment relationship

Engages the employee temporarily under specific contractual terms

Consent and Agreement

Requires consent from the employee for the loan arrangement

Requires consent and a formal agreement outlining the temporary arrangement

Duration of Relationship

Typically long-term or permanent employment

Temporary, often for the duration of a specific project or task

Payment and Benefits

Provides regular salary, benefits, and other employment perks

May offer additional compensation for the temporary assignment

 

Legal Considerations

  • Control Test: A critical factor in determining the type of employer is the right of control. The special employer must have the right to control the employee's work details.
  • Liability Issues: Legal liability can arise regarding who is responsible for the employee's actions during the loan period. Typically, the special employer assumes liability for incidents that occur under their supervision.
  • Workers' Compensation: Disputes often arise in workers' compensation claims, where the determination of general or special employment affects the outcome.

Conclusion

Understanding the differences between general and special employers helps clarify the responsibilities and legal implications for both types of employers. It ensures that both parties are aware of their roles and can manage their workforce effectively. Moreover employers from all over the gulf are recruiting talent from overseas through Certified Recruitment agencies in Pakistan like Delta International Recruitment Agency. This knowledge is crucial for businesses that frequently engage in temporary or project-based employment arrangements.

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