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In Montréal, as elsewhere in Québec and across Canada, the differences between a temporary contract through an agency and a permanent position directly with the client company are significant—both in terms of working conditions and employee benefits. Here's an overview of the key distinctions:
1. Contract duration
Temporary contract through an agency: The contract is usually fixed-term and may last a few days, weeks, or months, depending on the client’s needs. Job continuity is often uncertain.
Permanent contract with the client: This is an open-ended contract offering long-term employment stability.
2. Employer
Temporary contract through an agency: The employee is officially employed by the staffing agency, which assigns them to different clients. The agency manages payroll, benefits (if applicable), and administrative tasks.
Permanent contract with the client: The employee is hired directly by the client company, which handles all aspects of the employment relationship.
3. Benefits
Temporary contract through an agency: Benefits are often limited or unavailable. Some agencies may offer basic coverage such as health insurance, but these are usually less comprehensive than those offered in permanent roles.
Permanent contract with the client: The employee typically receives a full range of benefits, including health insurance, pension plans, paid vacation, and sometimes extras like performance bonuses or stock options.
4. Job stability
Temporary contract through an agency: Offers less stability, as assignments are often tied to short-term projects or needs. Once the contract ends, there’s no guarantee of continued work with the same client—or even with the agency.
Permanent contract with the client: Offers greater job security and long-term career development opportunities within the company.
5. Salary
Temporary contract through an agency: The pay may be competitive to compensate for the lack of stability, but it can also be lower than that of a permanent employee. Some agencies may deduct placement fees from the employee’s gross salary.
Permanent contract with the client: Salaries are often more stable and can include regular raises, bonuses, and other performance-based incentives.
6. Career advancement
Temporary contract through an agency: Limited opportunities for promotion, as temporary workers are rarely considered for internal advancement.
Permanent contract with the client: Greater chances for career growth, including promotions, internal mobility, and employer-sponsored training.
7. Relationship with the client company
Temporary contract through an agency: Temporary workers may feel less integrated into the client’s team, as they are viewed as external resources.
Permanent contract with the client: Employees are fully integrated into the team and company culture, which fosters a stronger sense of belonging and engagement.
In summary
A temporary contract through an agency offers flexibility, but generally comes with less stability and fewer benefits than a permanent position directly with a client company. Workers must carefully weigh these factors to determine which type of employment best aligns with their personal and professional goals.
Each week, the candidate is responsible for filling out their own timesheet, recording their daily working hours.
Once completed, the timesheet must be validated and signed by the supervisor at the client company.
The candidate must then submit the signed timesheet to their Fed consultant by Friday evening of the current week to ensure timely payroll processing.
Using a temporary resource in Montréal or elsewhere in Québec is a strategy often adopted by companies in specific situations.
Peak periods or temporary increase in workload
During seasonal peaks (such as retail during the holiday season) or production surges, companies may need additional labour to manage increased demand. Hiring temporary workers helps meet these needs without long-term financial commitments.
Short-term or project-based needs
Some projects are limited in duration and require specific expertise not available internally—such as the implementation of a new IT system. Temporary workers can be brought in for the length of the project, providing the necessary know-how without requiring a permanent hire.
Replacing permanent employees
When a permanent employee is away for an extended period—maternity leave, medical leave, or another type of absence—it’s often necessary to find a temporary replacement to ensure business continuity. Hiring a temporary worker allows you to maintain productivity without adding permanent headcount.
Trial period before permanent hire
Companies may wish to assess a potential employee before offering them a permanent role. This is especially relevant for senior positions or in industries with high turnover. Using a temporary contract allows the employer to evaluate skills and cultural fit before making a long-term commitment.
Flexibility in response to economic conditions
In uncertain economic times or during organizational restructuring, companies may be cautious about hiring permanent staff. Temporary workers offer the flexibility to adjust workforce size quickly according to business needs and market conditions.
Labour shortages in specific sectors
Some sectors—such as construction, healthcare, or hospitality—may face labour shortages at certain times. Temporary workers help fill these gaps quickly while permanent recruitment is underway.
Would you like to speak with a Fed consultant about temporary hiring, or assign us a role?
👉 Visit our contact form: https://www.fed-group.ca/en/entrust-job
In Montréal and throughout Québec, while the use of temporary workers is legal and common in many situations, certain laws and regulations limit or prohibit temporary assignments in specific cases.
Here are situations where the use of a temporary assignment may be restricted or not permitted:
Replacing permanent roles with temporary workers
Companies cannot use temporary contracts to indefinitely fill roles that are essentially permanent in nature. This may be seen as an attempt to bypass workers’ rights (e.g. job security, benefits, etc.). If a position is ongoing and essential to operations, the employer may be required to offer a permanent contract rather than rely on successive temporary contracts.
Violating collective agreements
In unionized workplaces, collective agreements may contain clauses that limit or prohibit the use of temporary workers in certain positions or circumstances. Failing to respect these clauses can result in grievances, and the employer may be required to comply with the terms of the collective agreement.
Avoiding obligations related to layoffs
If a company lays off permanent employees, it cannot immediately replace them with temporary workers to avoid legal obligations such as severance pay. Such practices may be challenged in court or by a union, and the employer could be required to reinstate the affected employees or pay additional compensation.
Workplace safety and working conditions
The use of temporary workers must not compromise health and safety standards. Employers are required to provide proper training and the same safety equipment to temporary workers as they do to permanent staff. Failure to do so can result in penalties, including being prohibited from continuing to use temporary staff.
Circumventing labour laws related to hours and pay
Employers cannot use temporary workers to sidestep labour standards related to working hours, minimum wage, overtime pay, or other compensation obligations. For instance, hiring temporary workers to avoid paying overtime to permanent employees may be considered abuse and could be challenged legally or through a union.
When you’re considering hiring a temporary worker through an agency in Montréal or elsewhere in Québec, it’s essential to comply with applicable regulations to ensure workers’ rights are respected and legal obligations are met. Below are the key responsibilities to keep in mind:
1. Choosing a compliant staffing agency
Make sure the staffing agency you work with is properly registered and compliant with Québec labour laws. The agency must meet its tax and employment obligations, including registration with the appropriate provincial authorities.
2. Fair working conditions
Temporary workers must be offered the same working conditions as your permanent employees performing similar tasks. This includes working hours, breaks, rest periods, and overtime compensation. For example, if your permanent staff are entitled to a 15-minute break every four hours, temporary workers must be granted the same.
3. Workplace training and safety
You are responsible for providing health and safety training to temporary workers. They must be informed about any risks related to their position and the safety measures required. If the job involves machinery or specific equipment, proper training must be provided before the assignment begins.
4. Equipment and protection
Temporary workers must have access to the same personal protective equipment (PPE) as permanent employees. You are required to supply this equipment and ensure it’s in good condition. If safety helmets, gloves, or other gear are necessary, they must be provided to temporary staff as well.
5. Compensation
Temporary workers must be paid in accordance with Québec labour standards, including minimum wage and overtime. While the agency usually handles payroll, you must ensure the agency complies with all wage-related regulations. You could be held liable if obligations are not met.
6. Non-discrimination and employment equity
The recruitment and treatment of temporary workers must be free of any discrimination. All employees must be treated fairly, regardless of their origin, gender, age, or other protected characteristics. If a position is open to staff, it must be equally accessible to temporary workers without discriminatory conditions.
7. Clear and transparent contracts
Although the contract is typically managed by the staffing agency, you must have a clear agreement with the agency outlining the contract duration, assigned tasks, workplace location, and compensation.
8. Tax and insurance obligations
Ensure the staffing agency is properly deducting income tax, social contributions, and insurance premiums (e.g., CNESST premiums) from the temporary workers’ pay. While the agency is responsible for these deductions, you must verify that they are fulfilling their legal obligations.
9. Access to occupational health and safety coverage
In the event of a workplace accident or occupational illness, temporary workers have the same rights as permanent employees under CNESST. The agency must have the appropriate coverage, and you must ensure that working conditions do not endanger the health or safety of the worker.
10. Communication and onboarding
You should support the integration of temporary workers by providing them with all necessary information about the company, the role, and expectations. A welcome meeting or employee handbook can help ensure they understand their responsibilities and the workplace rules.
Yes, it is possible to shorten the duration of a temporary assignment, under certain conditions and in compliance with current labour laws. The first step is to contact your temporary staffing agency to inform them of your decision.
Here’s how to proceed:
1. Review your agreement with the temporary staffing agency
Check the contract you signed with the agency. Look for clauses related to early termination or changes in the duration of the assignment. These may specify whether changes are allowed and under what conditions.
2. Inform the employee and the agency
Notification: Inform the temporary employee as early as possible, clearly stating the reasons for the shortened assignment (e.g. reduced workload, early completion of a project, etc.).
Notice period: Provide reasonable notice, in accordance with the terms of the contract and applicable labour laws. The Québec Labour Standards Act may require specific notice periods.
3. Employee compensation and rights
Compensation (refer to your contract with the staffing agency): If the contract ends earlier than expected, you may be required to pay compensation to the employee—often equivalent to what they would have earned had the contract run its full term.
Record of Employment (ROE): The agency will issue a Record of Employment specifying the duration of the assignment and the reason for early termination. This document is essential for the employee to apply for Employment Insurance (EI) benefits.
4. Reminder: respect employment standards
Non-discrimination: Ensure the decision to shorten the assignment is not perceived as discriminatory or unjustified termination.
Contractual obligations: Fulfil all contractual and legal obligations to avoid potential disputes with the employee or agency.
It is entirely possible to end a temporary assignment early, provided it complies with current labour laws and standards. We recommend that you first speak with your Fed Group consultant to assess the situation.
Once the decision is made, inform the employee:
Notification: Let the employee know as early as possible that the assignment is being shortened. Clearly explain the reasons (e.g. reduced workload, early project completion, budget changes, etc.).
Notice period: Provide reasonable notice, in line with the terms of the contract and applicable legislation. Québec’s Labour Standards Act may impose specific obligations regarding notice periods.
Would you like to make your temporary employee’s position permanent? Great news!
To do so, please refer to the terms outlined in the commercial agreement signed with one of our Fed Group offices.
In accordance with the rules established by the CNESST, converting a temporary employee to a permanent contract after 1,040 hours worked (approximately 6 months) can be done at no additional cost.
For a smoother transition, feel free to contact your Fed Group consultant.
Turning a temporary position into a permanent one involves a few key steps to ensure compliance with labour regulations and a seamless integration.
1. Assess the employee and your company’s long-term needs
Employee performance: Make sure the temporary employee has demonstrated the skills and behaviours required for a permanent role.
Long-term needs: Confirm that your organization has an ongoing need that justifies a permanent position.
2. Meet with the employee
One-on-one discussion: Schedule a meeting to talk about the opportunity for a permanent position. Share your reasons for offering this change and listen to their expectations.
New contract terms: Go over the new working conditions, including salary, benefits, responsibilities, and any changes from the temporary contract.
Yes, it is possible to extend a temporary assignment, provided certain conditions are met and current labour laws are respected. Your first step should be to contact your temporary staffing agency to inform them of your intent.
Discuss with the employee and contact your staffing agency
Conversation: Inform the employee of your intent to extend the assignment and discuss the new terms (duration, compensation, responsibilities).
Mutual agreement: The extension must be approved by the employee, especially if there are changes to the original conditions.
New contract
If the extension is significant, a new temporary employment contract may be required to clearly define the new work period and associated terms.
Comply with applicable labour standards
Total duration: Be mindful that repeated extensions may give the impression of a disguised permanent position. The CNESST may reclassify the role as permanent if the assignment is prolonged too frequently.
Legal limits: Make sure the extension complies with provincial labour laws governing the maximum duration of temporary assignments.
