Outsourcing and temporary staffing are often confused because both involve one company placing people to work for the benefit of another. Both models are governed by the same Brazilian law, Law 6,019/1974, but they have different purposes, terms and rules. Choosing the wrong model can create labor risk, including recognition of an employment relationship with the client company.
The legal basis
Brazilian Law 6,019 of January 3, 1974 has governed temporary work since its origin. In 2017, two laws amended it significantly: Law 13,429/2017, which rewrote the rules on temporary work and added provisions on the provision of services to third parties, and Law 13,467/2017 (the labor reform), which made it explicit that outsourcing may cover any of the contracting company's activities, including its core activity.
Temporary work is regulated by Decree 10,060/2019, which details, among other points, the registration of temporary staffing agencies and contract terms.
What temporary work is
Under the current wording of art. 2 of Law 6,019, temporary work is work performed by an individual hired by a temporary staffing agency, which places that individual at the disposal of a client company. The law allows two cases:
- Temporary replacement of permanent staff: for example, covering absences, leaves or vacations.
- Additional demand for services: increased demand, such as seasonal peaks or projects with a set deadline.
Terms
Art. 10 of Law 6,019 establishes that a temporary employment contract, with respect to the same employer, may not exceed 180 days, consecutive or not. It may be extended by up to 90 days, consecutive or not, when it is shown that the conditions that justified the hire still apply.
After these periods, the worker may only be placed with the same client company under a new temporary contract 90 days after the end of the previous contract. Hiring before that interval establishes an employment relationship with the client company.
Who can provide temporary workers
Only a temporary staffing agency, defined in art. 4 of the law as a legal entity duly registered with the Ministry of Labor. Before hiring, it is worth asking the provider for proof of this registration.
The client company's liability
The contracting company has secondary (subsidiary) liability for labor obligations relating to the period in which the temporary work takes place (art. 10, § 7). It is also responsible for ensuring safety, hygiene and health conditions when the work is performed on its premises.
What outsourcing is
In outsourcing, the contracting company transfers the execution of one or more of its activities, including its core activity, to a service provider with economic capacity compatible with that execution (art. 4-A). The subject of the contract is a service, not the assignment of a person to cover an absence.
In practice, the service provider hires, pays and directs the work of its employees. The contracting company may not use these workers for activities other than those set out in the contract (art. 5-A, § 1).
The contracting company's liability
As with temporary work, the contracting company has secondary (subsidiary) liability for labor obligations relating to the period in which services were provided (art. 5-A, § 5). This means that if the provider fails to meet its obligations, the contracting company may be held liable. That is why monitoring the provider's compliance (wages, payroll taxes, statutory contributions) is part of good contract management.
Restrictions set out in the law
- A legal entity whose owners or partners provided services to the contracting company, as employees or without an employment relationship, in the last 18 months may not act as the service provider, unless they are retired (art. 5-C).
- A dismissed employee may not provide services to the same company as an employee of a service provider until 18 months after dismissal (art. 5-D).
- Services may be performed on the contracting company's premises or at another location, by mutual agreement (art. 5-A, § 2).
What about direct hiring through recruitment and selection?
Recruitment and selection (R&S) is something else. In this case, the consultancy helps find and assess candidates, but the client company itself hires directly, as the employer. The employment relationship is between the professional and the client, and all labor obligations belong to the client from the date of hire. The consultancy provides a selection service; it does not supply workers.
Comparison
| Aspect | Temporary work | Outsourcing | Recruitment and selection (direct hire) |
|---|---|---|---|
| Purpose | Temporary replacement or additional demand | Execution of a specific activity or service | Fill a position on the company's own payroll |
| Worker's employer | Temporary staffing agency | Service provider | The client company itself |
| Term | Up to 180 days, extendable by up to 90 | As set out in the service agreement | The client's employment contract |
| Who directs the work | Client company (technical, disciplinary and managerial authority, art. 18 of Decree 10,060/2019) | Service provider, which hires, pays and directs (art. 4-A, § 1) | The company itself |
| Contracting company's liability | Secondary, for the period of temporary work | Secondary, for the period of service provision | Full, as the employer |
| Specific requirement for the provider | Registration with the Ministry of Labor | Compatible economic capacity and the requirements of art. 4-B | Not applicable |
How to choose the model
- Is the need temporary, and does it fit replacement or additional demand? Temporary staffing may be appropriate.
- Does the company want to hand over an entire activity (cleaning, front gate, operational support) to be managed by another company? Outsourcing tends to be the way to go.
- Is the role permanent, and does the company want the professional on its own payroll? Recruitment and selection for direct hire is the natural model.
In any case, the contract must reflect reality. Using temporary workers for a permanent need, or outsourcing with the worker directly subordinated to the contracting company, are situations that increase the risk of legal challenge.
Grupo Select works with all three models: workforce outsourcing, temporary staffing and recruitment and selection. If you are unsure which applies to your case, the team can help you understand the need before proposing a format.
For information purposes only, based on Brazilian legislation in force in October 2026. It does not replace specific legal or accounting advice for your case.
Sources
- Law 6,019/1974 (consolidated text) – Planalto (Brazilian federal government, in Portuguese) (opens in a new tab)
- Law 13,429/2017 – Planalto (in Portuguese) (opens in a new tab)
- Law 13,467/2017 – Planalto (in Portuguese) (opens in a new tab)
- Decree 10,060/2019 – Planalto (in Portuguese) (opens in a new tab)
