This is an arrangement in which two organisations have some legal responsibility or oversight for the same employee. This may be in the case of a staffing firm or employment services provider subsidising part of the wages of employee while they perform work for a company. This is common with some welfare-based employment providers in Australia, particularly with individuals on certain types of pensions or welfare payments.

Co – employers or organisations usually take over their client’s employment and administrative tasks; some organisations hire staffing agencies recruit qualified staff; generally, employment guidance allows the staffing agency to be in charge of most or all responsibilities to save the clients time. Some staffing agencies are even in charge of managing the co-employee’s payroll and holiday entitlements.