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Spain - Association offers deposit insurance to staffing agencies

07 August 2009

The Spanish Association of Temporary Staffing Agencies (Fedett) has signed a contract with insurance giant Caser in order to offer member and non-member agencies a deposit insurance as a financial safety net, which avoids bank guarantees in difficult financial times.

Fedett explains that the initiative complies fully with Spanish law, which requires temporary staffing agencies to have a bank guarantee in place to protect the right of workers and to open the lines of credit from their banks.

“After two years of intensive negotiations and with the help of insurance brokers Vergara and Larrea, Fedett have reached this agreement with Caser at a very difficult moment for small and medium sized temporary employment agencies who simply cannot get their banks to open their lines of credit��VbCrLf, the association explains.

“This financial guarantee aims at protecting salaries and social security payments and represents an extraordinary protection of the rights of workers. However, the guarantee will not be available to agencies which supply workers illegally, who dump wages and who undermine the rights of temporary workers by unfair competition.��VbCrLf



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