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Staff leasing refers to the temporary deployment of employees in a host company, also known as assignment or contracting company. The staff leasing agency concludes a framework agreement with one person and transfers it to another company by means of an assignment contract. As an employer, the staff leasing agency assumes responsibility for wages, insurance and social security contributions. The legal requirements vary depending on the duration of use and industry. Staff leasing agencies are obliged to invoice wages correctly and to communicate with authorities. The host company pays the staff leasing agency a fee specified in the temporary staffing agreement. This form of employment is also referred to as temporary work or temporary employment.

Payroll, in German known as payroll accounting or payroll, includes all tasks that revolve around the payroll of employees of a company. This includes recording working hours, preparing and reviewing payslips, calculating social security contributions and other taxes, and paying wages. It is an essential part of HR and ensures that employees are paid on time and correctly. Compliance with legal requirements and guidelines is of great importance in order to avoid possible legal consequences.

Payrolling is different from staff leasing, where a temporary agency searches for candidates and leases them to companies. With payrolling, the company searches for suitable candidates itself and the payroll provider only takes over the employment relationship. This model is particularly suitable when companies know exactly who they want to hire but cannot hire anyone directly for various reasons.