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Market Development

Development of Temporary Employment Agencies and Employees' Lease Market:

  • In the USA and the so-called old European countries (Great Britain, Germany) this temporary employment has already been developing since 1960ies.
  • In Latvia the first temporary employment agencies commenced work around 2002, which, for the most part, was connected with the entry of foreign companies into Latvia and the foundation of agencies.
  • In most European countries the activity of temporary employment agencies has been stipulated by the local state legislation or regulated by collective agreements, and in November 2008 EU Directive "Temporary and Agency Workers Directive" was adopted.
  • Temporary employment is not separately regulated by the labour legislation of Latvia, the Labour Law of the Republic of Latvia only stipulates that a provider of labour force provision service is an employer to whom apply all the conditions of the Labour Law.
  • In 2004 in the first 15 Member Countries of the European Union 1.5% of the total employment on average were employed by the help of temporary employment agencies.
  • In some countries, for instance Germany, temporary employment or employees' lease agencies help to employ about one third of the total number of employees, in several European countries this proportion is even larger, exceeding 50%.
  • In the new EU Member Countries the proportion of temporary and lease employees is from 0.5% in Poland, Slovakia and Slovenia to 1.4% in Hungary (according to the available data).
  • According to the information, aggregated by Eurociettin June, 2011, the number of hours-worked by employees, employed by temporary employment agencies, has increased by 18.1% within a year (in comparison with the respective period of time in 2010). The largest increase has been in Switzerland - 43.2%.
  • The statistical data on the situation in Latvia have not been aggregated and available but, according to the information given by TEAAL members, the number of leased employees increases almost threefold each year.

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