Temp agency (ETT) or direct hire for a first-time employer

Key rules

• Best use: An agency suits short, limited needs; stable roles need direct hire.
• Agency price: No law fixes the agency's margin, so it is negotiated and you should compare quotes.
• Safety: You are responsible for the agency worker's health and safety at your workplace.
• Banned uses: You cannot use an agency to replace striking workers or for jobs classed as dangerous.

The short answer

Use a temp agency (an empresa de trabajo temporal, or ETT) for short, limited needs. Hire directly for a stable, ongoing role. The agency costs a margin on top of the worker's cost, and you keep important legal duties either way.

When an agency makes sense

An ETT sends you a worker under a contrato de puesta a disposición, a contract between you and the agency. You can only use it in the cases where you could hire a temporary worker yourself. Since the 2021 labour reform, those cases are:

• A sudden, unforeseeable spike in work.
• A foreseeable need that is short and clearly limited.
• Covering a worker who is absent.

Typical examples are a seasonal rush, a one-off project or a sick-leave cover. The agency handles recruitment, the payroll and the worker's contract. Agencies can also hire people on a permanent fixed-discontinuous contract and send them to you on assignments.

When to hire directly

Hire directly if the role is permanent, ongoing or central to your business. An agency cannot be used to fill a lasting need with a rotating series of temporary workers. Direct hire also avoids the agency's margin and gives you full control over who joins your team.

What an agency costs

No law sets the agency's margin. You agree the price in the contract. It is normally the worker's full cost (salary plus employer Social Security contributions) plus a markup for the agency's management and profit. It is often set as a coefficient on that cost or as an hourly rate.

The markup depends on the job's volume, sector, duration and risk. Large volumes and long assignments usually bring it down. Ask several agencies for quotes before you choose.

What you cannot use an agency for

You cannot use an agency to:

• Replace workers who are on strike.
• Fill jobs that the risk assessment classes as dangerous.
• Fill jobs where you made unfair or collective dismissals in the previous 12 months.

Only use an agency that holds the required authorisation. Public bodies and some sector collective agreements add further limits, so check the agreement that covers your sector.

What stays with you

Hiring through an agency does not remove your duties:

• Health and safety: You are responsible for the worker's safety on the job. You must explain the risks, give training on them and check that the agency gave the worker adequate training and health checks.
• Working conditions: You set hours, rest, holidays, night work and overtime.
• Equal pay: The worker must get pay equivalent to your own staff under your collective agreement. They can use your facilities and services on the same terms.
• Wages and contributions: If the agency does not pay, you are liable for the wages and Social Security during the assignment. You can be fully liable if the agency lacks authorisation or the contract is not in the proper form.
• Information: You must tell workers' representatives about each contract.

How to decide

1. Is the need short and clearly limited, or a cover for an absence? If yes, an agency can work.
2. Is the role ongoing? If yes, hire directly.
3. Does one of the banned uses apply? If yes, you cannot use an agency.
4. If you use an agency, compare quotes and check its authorisation.

The documents, warnings and questions below cover the detail.

Documents you need

• Contract for provision of services (contrato de puesta a disposición) between you and the agency. It must be in proper form and cover a case where you could hire temporary staff directly, such as a short, limited production need or covering an absent worker.

What to watch out for

• Some uses of an agency are banned: You cannot use an agency to replace workers on strike, for jobs your risk assessment marks as dangerous, or for the same jobs where you made unfair or collective dismissals in the last 12 months. An agency also cannot pass its workers on to other agencies. Check these four cases before you sign. If one applies, hire directly or use a different arrangement. Ask your sector's employers' association or collective agreement for extra limits.

• Health and safety stays with you: You are responsible for the agency worker's safety while they work for you, even though the agency pays them. You can also be liable for a surcharge on benefits if prevention measures were missing. Give the worker information and training on the risks of the job. Check that the agency has trained them and covered their health checks.

• You can end up paying the worker's wages and contributions: If the agency does not pay wages or Social Security for the assignment, you are liable for them as a backup. You can be fully liable alongside the agency if it has no authorisation or the contract is not in proper form. Use only an authorised agency and sign the service contract in proper form.

Frequently asked questions

How much does a temp agency charge on top of the worker's cost?

There is no fixed or legal margin, so the agency's markup is agreed freely in your contract with it. The price is the worker's total cost (salary plus employer Social Security) plus a markup for the agency's costs and profit. The markup is often a coefficient on that cost or an hourly rate, and it is usually lower for large volumes and long assignments.

Do I have to pay an agency worker the same as my own staff?

Yes, an agency worker must get pay equivalent to your own staff under your collective agreement. You also set their hours, rest, holidays, night work and overtime. They can use your canteen and other facilities on the same terms as your employees.

Can the agency employ a worker on a permanent contract and still send them to me?

Yes, an agency may hire a worker on a permanent fixed-discontinuous contract and send them on assignments to user companies. The worker stays on the agency's payroll between assignments. Your use of the worker must still fit a case where you could hire temporary staff directly.