Breaking Ties with a Temp Agency After You Get Hired Full-Time

Temp agency jobs are basically contract jobs, based on agreements between yourself and the agency. Breaking ties with a temp agency can be a little complex, but it’s not impossible.

Agreement Basics

A temp agency signs up clients on either a term or project basis. They also sign up client employers with a standard option regarding hiring on a permanent basis.

These are the relevant issues in terms of your ties with the temp agency:

  1. The terms of your agreement are conditional.
  2. Conditions may vary between agencies and types of agreement.
  3. Terms of agreements should contain provisions for ending the agreements.
  4. The terms of agreement between the temp agency and the employer are similar, and contain a provision for hiring on a full-time basis with provisions for payment of a finder's fee to the agency.
  5. A time frame may apply to both types of agreement, after which you’re eligible to be hired, or the employer may hire you.

Remember, a temp agency is a business based on cash flow from your wages. You are actually an employee of the agency under the agreements. The agency has a legitimate claim for compensation if an employer wants to hire you full-time.

Problems and Situations

Breaking ties with temp agencies creates some issues for employees and employers.

These common problems for employees are straightforward:

  • They want to receive their full wages and not give a part of their salary to the temp agency.
  • Full-time jobs have extra benefits and incentives.
  • Employment packages can be negotiated more effectively by both parties when not subject to a third-party agreement.

Employers have a vested interest in the employment arrangement. The employer’s considerations are all about business issues:

  • They can’t give a temp employee a package while subject to the agreement with the temp agency, because of the arrangement for proportionate payments to the temp agency, which devalues the package.
  • They don’t want to pay the temp agency any more than they must in terms of wages, particularly at the expense of a valuable employee.
  • The terms of agreement with the temp agency give them a simple solution, based on a set fee. 

Usually the employer will pay the fee to the temp agency and/or wait for the required time before the employee is eligible for hire.

Important “Don’ts” in Breaking Ties with Temp Agencies

Some people try to get around their obligations by various means, like quitting the job or canceling the agreement, then getting “hired” by the employer.

Don’t even think about it.

That approach won’t work, ever, because of the following reasons:

  • You and the employer were both under binding agreements with the temp agency when you were first employed. The agency can still make a case for payment from both you and the employer on that basis.
  • You and the employer both used the agency’s services on specific terms, and the rehiring is effectively proof of an attempt by both parties to deprive the agency of its legitimate entitlements.

The result of these situations is that both parties could be liable for a breach of agreement.