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Staffing provider (PDL): definition and role

The Staffing provider supplies the external workforce. This entry explains the role, the duties and how client companies manage several providers.

Key facts

A company that leases out or places workers.
In staff leasing, the agency and the temporary worker's employer.
Needs the license from the Federal Employment Agency.
Carries duties on pay, social security and equal pay.

Definition and classification

A Staffing provider (PDL) is a company that leases out or places workers. In Staff leasing it is the temporary work agency and at the same time the temporary worker's employer – it concludes the leasing agreement with the hirer and needs the license from the Federal Employment Agency.

How do you manage several staffing providers?

Where companies use several providers in parallel, comparability becomes decisive: Fill rate, speed, quality and price should be measurable across providers. A VMS brings all providers together on one platform and delivers neutral performance data for fair Provider management.

Frequently asked questions

What license does a staffing provider need?

For staff leasing, the license from the Federal Employment Agency – limited to one year at first, and open-ended after three years.

Is the staffing provider or the client the employer?

The staffing provider is the temporary worker's employer. The client (the hirer) only has the authority to instruct during the assignment.

What is the difference between leasing and placement?

With leasing the provider remains the employer; with placement the worker is employed directly by the client, usually for a commission.

Related terms

Agency & hirer Staff leasing license Provider management Staff leasing

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Staff leasing

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