Frequently asked questions

Answers on Pactos, its solutions and the external workforce

Answers on Pactos, running an external workforce, compliance and security. Not found what you need? We are only a message away.

What is Pactos?
Pactos is a Munich-based B2B software company that lets large enterprises run their external staffing providers centrally — from the staffing request through digital records and approvals to compliance and billing.
What is a Vendor Management System (VMS)?
A Vendor Management System (VMS) is a software solution for managing your staffing providers digitally. Vendor Intelligence is our next-generation vendor and workforce management system.
What is a Workforce Management System (WMS)?
A Workforce Management System (WMS) is a software solution that helps companies optimize how they plan and run their workforce. At Pactos, modules such as shift planning and time tracking cover central WMS functions.
Who is Pactos for?
Pactos is a solution for staff leasing. It simplifies the collaboration between companies that use staff leasing and their staffing providers.
How does Pactos work?
Pactos is the interface between temporary work agencies (staffing providers) and hirers (companies). With our AI-assisted software you map the entire process from sourcing to administration in a way people can actually use. Book a no-obligation introductory call.
What do I gain from Pactos?
Pactos improves the whole process of using an external workforce, from sourcing to administration. With Vendor Intelligence, Compliance and Tender you raise efficiency, make picking the right staffing providers simpler and keep an overview of your external workers.
What sets Pactos apart?
Pactos brings staffing requests, providers, assignments, records and invoices into one system. AI supports selected steps; decisions stay with people. Roles, approvals and interfaces are adapted to each process.
Which products are there?
What is Vendor Intelligence?
Vendor Intelligence is our Vendor Management System (VMS) for the external workforce: all providers, records and invoices in one system. It consists of core modules – from job demand through candidate management, assignment and invoice verification to analytics – plus add-on modules such as Shift Planning, Time Tracking and Short Term Staffing. Your benefit: less manual work, fewer invoicing errors and full transparency over every assignment in one place.
What is Compliance Intelligence?
Compliance Intelligence makes sure you work with your providers lawfully every day. It continuously checks the temporary staffing license, obtains clearance certificates automatically and warns about deadlines such as the maximum assignment period and Equal Pay – which reduces, among other things, the risk from secondary liability. Your benefit: legally sound collaboration without chasing deadlines by hand.
What is Tender Intelligence?
Tender Intelligence is a supported tender service (not a marketplace): the Paco AI searches more than 5,000 providers and identifies the staffing providers that fit your tender – fast, digital and precise. Your benefit: a suitable partner sooner, without laborious market research of your own.
What is Workforce Intelligence?
Workforce Intelligence brings shifts, times and records for the entire workforce into one system: permanent staff and external workers sit in the same plan, times are captured once and flow on verified. The AI features work within it; people make the decisions.
Can I choose modules freely?
Yes. The product is modular: you pick exactly the modules that suit you instead of the whole system. Individual system configurations are possible on top.
Can Pactos be integrated with our systems?
Yes. Pactos offers open interfaces to ERP and HR systems, via REST API or file-based. Your leading system remains the data source; Pactos runs the processes around the external workforce.
Does Pactos use artificial intelligence?
Yes, with concrete benefit: AI supports candidate selection, invoice verification and works as an AI feature directly in the product. Not a buzzword, but work taken off your hands.
Can access be adapted for different roles?
Yes. Not every role has the same access to everything – that can be set individually. A Master Vendor can also be given targeted access to a specific area in order to manage further providers.
What is staff leasing?
Staff Leasing is an employment arrangement in which a temporary staffing agency (the temporary work agency) lends its employees temporarily to another company (the hirer); the temporary worker stays employed by the agency. In Pactos, hirer, agency and where applicable the Master Vendor work together on one platform – roles and permissions control who sees what.
How does staff leasing work?
The temporary worker is employed by a temporary staffing agency and lent to a client company. The hirer assigns the tasks, while the agency pays the salary and administers the employment relationship. Pactos maps this entire sequence digitally – from the staffing request through candidates and assignment to records and billing.
Statement of work or staff leasing – what is the difference?
With a statement of work , a company owes a finished result and keeps the right to direct its own employees; it does not fall under the AÜG. With staff leasing, a staffing provider lends employees and the right to direct passes to the hirer. A clean distinction matters in order to avoid concealed staff leasing .
How do billing and payment work in staff leasing?
The temporary staffing agency pays the temporary workers their salary based on the hours agreed. The client company receives an invoice covering salary, social security contributions and a service fee. Pactos digitizes timesheets and Invoice verification and surfaces discrepancies early – at KNUTH, for example, 20% fewer invoicing errors.
What does maximum assignment period mean?
The maximum assignment period is usually 18 months. After that the temporary worker must either be taken on permanently or the assignment must end. Pactos monitors this deadline per worker automatically and warns in good time before it is exceeded.
What does Equal Pay mean?
Equal Pay means that after nine months on assignment, temporary workers must receive the same pay as the hirer's permanent staff for equivalent work. Pactos tracks the Equal Pay deadline per person and flags it in good time, so no back payments arise.
What does Equal Treatment mean?
Equal Treatment requires temporary workers to have access to the same working conditions as permanent employees from day one, for example break arrangements or protective clothing. In Pactos the relevant assignment and contract data is documented centrally and can be evidenced at any time.
What does temp-to-perm mean?
Temp-to-perm describes a temporary worker moving into permanent employment with the hirer after an agreed period on assignment. In Pactos you see assignment histories and qualifications at a glance – a sound basis for the decision to take someone on.
How does Pactos support AÜG compliance?
Pactos continuously checks providers' temporary staffing licenses , automatically obtains clearance certificates and warns about deadlines such as the maximum assignment period and Equal Pay.
What is secondary liability?
The hirer's subordinate liability for social security contributions the provider has not paid (§ 28e (2) SGB IV, German Social Code). Pactos obtains clearance certificates automatically and makes the risk visible early. More on this in the glossary.
What is a clearance certificate (UBB)?
A clearance certificate (UBB) confirms that a staffing provider has properly paid its social security contributions, taxes and professional association contributions. It is the most important record against the risk of secondary liability. Pactos obtains current clearance certificates automatically and checks their validity continuously.
Does the Supply Chain Act apply to staff leasing?
The German Supply Chain Due Diligence Act (LkSG) has applied since 2024 to companies with 1,000 or more employees. Temporary workers usually count towards that figure if they work at the same client company for more than six months – but staff leasing is not expressly regulated. More on this in the blog.
Where is our data hosted?
Exclusively in EU data centers, so your data stays within the European legal area. It is encrypted in transit and at rest; on top of that come monitoring, regular backups and recurring security tests.
Is Pactos certified and GDPR-compliant?
Yes. Pactos is ISO 27001 certified and processes data in line with the GDPR; a data processing agreement and a transparent list of sub-processors are part of that. More on the security page.
What does the ISO 27001 certification mean?
ISO/IEC 27001 is the leading international standard for information security management systems. An independent auditor confirms that Pactos manages and protects risks systematically.
How does Pactos protect access to data?
Role-based permissions mean each party sees only the information intended for it. On top of that come SSO/SAML for central access management and complete audit logs of every action.
How does Pactos handle AI and my data?
Your data is not used to train AI models, AI processing takes place within the EU, and every AI action is traceable through audit logs.
What data protection rights do I have?
You have the right to information, rectification, erasure, restriction and objection to processing, to data portability and to withdraw consent you have given – plus the right to complain to a supervisory authority. Details in our privacy notice.
Do I get a data processing agreement or a completed security questionnaire?
Yes. We provide the data processing agreement, the ISO certificate and answers to common security questionnaires on request.
How do I reach the security team?
Send security-related reports and questions to privacy@pactos.ai.
How does pricing work?
Pricing is volume-based and therefore flexible: you pay a variable fee on the volume you manage. On top of that come one-off costs for implementation and interfaces – no further recurring costs arise. We discuss your specific quote in a personal call.
What does the rollout look like?
In clear phases that build on one another: it starts with a short workshop to define the goals, then we handle implementation and integration and connect your staffing providers. Guided onboarding follows, with short training sessions so people can start straight away; after that, central support and automatic SaaS updates keep operation smooth.
What are the benefits of this rollout?
Three things: 100% less effort – we take on the strategic steering and administration, no effort for you. A guaranteed start – go-live in under three months, with fixed dates and no delays. Zero IT footprint – no internal IT resources required, including maintenance, updates and support.
What operational challenges come up in Master Vendor projects?
Existing VMS systems often add work instead of removing it. Typical problems are poor usability (complex, misleading interfaces), missing interfaces (broken media chains and duplicate manual maintenance), data silos (scattered list-keeping without transparency) and inadequate support (unanswered requests). Pactos starts exactly there: intuitive operation, open interfaces, central data and fast support.
What do I get from Pactos as a hirer?
You get an overview of all providers, costs and records in one place, less manual work and a markedly lower liability risk.
Can I manage all my staffing providers in the system at the same time?
Yes, our Vendor Management System lets you manage several staff leasing providers in a single platform, so you get a complete overview of all vendors and what they deliver.
How does the system help control the cost of temporary workers?
Transparent cost overviews and real-time reporting let you manage budgets better and make cost-efficient decisions. The system also supports automatic invoice checking to avoid errors and overpayments.
Does Pactos reduce my liability risk?
Yes. Continuous license checking, automatically obtained clearance certificates and deadline warnings reduce, among other things, the risk from secondary liability.
How quickly do I see results as a hirer?
First effects often show early. At KNUTH, for example, it was 20% fewer invoicing errors and 70% time saved in the processes.
What operational challenges come up in Master Vendor projects?
Existing VMS systems often add work instead of removing it. Typical problems are poor usability (complex, misleading interfaces), missing interfaces (broken media chains and duplicate manual maintenance), data silos (scattered list-keeping without transparency) and inadequate support (unanswered requests). Pactos starts exactly there: intuitive operation, open interfaces, central data and fast support.
What does Pactos give us as a provider?
One platform instead of Excel and email: requests, candidates, records and billing in one place. Your clean compliance becomes a visible mark of quality.
How does a Vendor Management System help improve client relationships?
As a Managed Service Provider, Master Vendor or Neutral Vendor you want to run the external workforce efficiently, meet legal requirements and deliver the best results for your clients. The Pactos Vendor Management System (VMS) gives your business partners a new way to fill staffing requests quickly, run assignments better, minimize risk and raise your competitiveness.

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