Co-employment

What is Co-employment ?

‘Co-employment’ refers to an intermediary division between the HR and the employer. In the case of co-employment, both of the concerned parties share the legal responsibilities of an employer.

While the employer or the Professional Employment Organization (PEO) takes care of the administrative factors like payroll management, benefits processing etc., the HR would be concerned with the daily duties of the employees and other HR-related factors.

They are generally used to lower the burden on HRs of large organizations. As the PEOs take care of the administrative responsibilities, they are mostly tasked with the sections of HR which are time-consuming, for example, payroll and leave management.

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