Staffing agency
is a firm that finds and supplies workers to client companies — either recruiting them for direct hire or supplying temporary staff it employs itself. In Europe, supplying staff who work under the client’s direction is regulated labour leasing and usually requires a licence.
Recruitment or supply — why the difference matters
An agency that only introduces candidates earns a placement fee and steps away; the client becomes the employer. An agency that supplies temps remains their employer during assignments — which triggers licensing (Germany’s AÜG, Switzerland’s SECO regime), equal-treatment rules and sector agreements such as staffing CBAs.
Many agencies avoid carrying licensed employment in every country by partnering with a licensed Employer of Record or payrolling provider, which employs the contractors the agency places.
What clients should verify
- Licence status: for supplied staff, check the agency’s or its employment partner’s licence in the public register.
- Who employs the worker: the entity on the employment contract carries payroll, insurance and permit duties.
- Chain liability: in the Netherlands and elsewhere, clients share liability for wage and tax failures down the chain.
Related terms: labour leasing, payrolling, Contractor of Record
FAQ
What is the difference between a staffing agency and an EOR?
A staffing agency finds the workers; an EOR employs them. Agencies sell sourcing and matching, EORs sell compliant employment infrastructure. They often work together: the agency places a contractor, the EOR employs and pays them under its licences.
Do staffing agencies need a licence in Europe?
For supplying temporary staff, usually yes: Germany (AÜG), Switzerland (cantonal and SECO licences), France (travail temporaire) and others regulate the activity. Pure recruitment for direct hire is licensed more lightly or not at all, depending on the country.