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Simple English definitions for legal terms
loaned employee
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A quick definition of loaned employee:
A loaned employee is someone who works for one employer but is temporarily lent to another employer with the employee's consent. The borrowing employer is responsible for the employee's actions, but may also have immunity under workers' compensation laws. A probationary employee is someone who is newly hired and being evaluated during a trial period, while a statutory employee is covered by the employer's workers' compensation insurance and cannot sue the employer for unintentional injuries on the job.
A more thorough explanation:
A loaned employee is an employee whose services are temporarily lent to another employer with the employee's consent. The borrowing employer assumes control over the employee's work during this period. This is also known as a borrowed employee or a special employee.
For example, if a company needs extra help during a busy season, they may borrow an employee from another company to help them out. The borrowed employee will work for the borrowing company for a set period of time, but their original employer still pays their salary and benefits.
Under the doctrine of respondeat superior, the borrowing employer is responsible for the employee's actions during this period. However, the employer may also be entitled to assert immunity under workers' compensation laws.
Overall, a loaned employee is a temporary worker who is lent to another employer to help out during a busy period or to fill a specific need.