Across the globe, the definition of “full-time” employment varies significantly, influenced by cultural norms, economic conditions, and labor regulations. While the 40-hour workweek is a standard benchmark in countries like the United States, other nations, such as France, lean towards a 35-hour week. Furthermore, some countries in Asia are known for longer working hours, whereas Nordic countries often prioritize work-life balance with shorter work weeks.
This diverse tapestry of work-hour norms is a testament to the wide-ranging approaches to productivity, leisure, and well-being in different cultural and economic contexts. Let’s explore how “full-time” is defined across various nations and the implications of these variations.
Full-time hours in the US
In the US, a typical workweek is 40 hours – five days a week, eight hours a day. However, definitions vary. Some employers see 37.5 hours as full-time, accounting for a 30-minute lunch daily, while for others, 35 hours, including a one-hour lunch, is full-time. Though the common benchmark is 40 hours, other factors might influence this number.
Benefits of working full-time
Eligibility for benefits such as health and dental insurance.
Access to paid vacation and sick days.
Generally, there is more job security compared to part-time roles.
A routine that offers a structured lifestyle.
What perks come with full-time work? Often, full-time positions come with:
Paid vacations.
Sick leave.
Health and dental insurance.
Retirement plans with matching contributions.
Stock ownership opportunities.
Beyond federal requirements, companies can customize their benefit packages.
How is full-time defined by employers?
In the US, most employers see 40 hours a week as full-time. But, some base it on shifts rather than hours, which is less usual.
The IRS provides guidance on this. A full-time employee, according to them, works at least 30 hours weekly or 130 hours monthly. They suggest two methods to assess this:
Monthly measurement – check if an employee’s service reaches 130 hours every month.
Look-back measurement – evaluate an employee’s status during a “stability period” based on their service hours in the prior “measurement period.”
What about salaried workers?
Usually, salaried employees work a minimum of 40 hours weekly. However, the Fair Labor Standards Act (FLSA) doesn’t specify full-time for them, allowing employers to set their criteria. Some salaried roles, due to their specialized nature, are exempt from typical hourly tracking and overtime rules under the FLSA.
Even if deemed full-time, an employee might not get all the perks. A worker putting in 35 hours might miss out on health benefits if the company’s threshold is 40 hours.
Notably, in the European Union, the Working Time Directive caps the average working week at 48 hours. Yet, individual countries can have variations. For instance, France’s standard workweek is 35 hours.
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As your outstaffing
Outstaffing, also known as "staff augmentation" or "outsourced staffing," is a legal arrangement in which a business entity (the "client company") contracts with a third-party service provider (the "outstaffing company") to temporarily transfer certain employment-related responsibilities and obligations associated with its workforce. This contractual relationship is established according to applicable labor and employment laws.
Legal aspects of outstaffing
Employment relationship. Under an outstaffing arrangement, the client company retains control over the day-to-day tasks and supervision of the individuals who work for it. However, the outstaffing company formally employs these individuals, becoming the legal employer of record.
Compliance with employment laws. The outstaffing company assumes responsibility for complying with labor laws, including but not limited to wage and hour regulations, tax withholdings, workers' compensation, and employment discrimination laws. It’s obligated to ensure that the workers are treated under applicable employment standards.
Contractual agreement. The client company and the outstaffing company enter into a legally binding contract outlining the terms and conditions of the outstaffing arrangement. While the specific content of such agreements can vary depending on the parties' needs and preferences, these are the common sections of a typical outstaffing agreement:
Introduction and definitions
Scope of services
Duration and termination
Payment and fees
Employee benefits and compensation
Confidentiality and intellectual property
Indemnification and liability
Insurance
Compliance with laws
Dispute resolution
Conflicts of interest
Force majeure
Governing law and jurisdiction
Risk mitigation. Outstaffing can help the client company mitigate certain employment-related risks, such as legal liabilities associated with wrongful termination, workplace injuries, or employee disputes. By transferring these responsibilities to the outstaffing company, the client company may reduce its exposure to such risks.
Cost control. Outstaffing can offer cost savings to the client company by eliminating the need for full-time employees and associated expenses like benefits, insurance, and payroll administration. Instead, the client company pays a fee to the outstaffing provider for its services.
Confidentiality and intellectual property. The contractual agreement between the parties often includes provisions to safeguard the confidentiality of the client company's proprietary information and address issues related to intellectual property created by the workers.
Outstaffing advantages and benefits
Money saving. Outstaffing allows you to access skilled professionals without the overhead costs of hiring full-time employees. You pay for the specific services you need, reducing expenses like benefits, office space, and equipment.
Access to global talent and technology. Outstaffing providers often have access to a global pool of talent, enabling you to tap into specialized skills and expertise that may not be available in your local job market. You can also take advantage of the outstaffing provider's technology infrastructure, software, and tools, avoiding substantial upfront investments in technology and software licenses.
Reduced administrative burden. The outstaffing company assumes HR and administrative responsibilities, including payroll, tax compliance, and regulatory adherence, freeing you from these tasks.
Scalable workforce. Add or remove workers as needed to match project scope, allowing for efficient resource allocation and improved project management.
Cost predictability. Budget more accurately with predictable outsourcing costs, as opposed to the unpredictable costs associated with hiring and retaining full-time employees.
Competitive advantage. Stay competitive in your industry by leveraging outstaffing to quickly adapt to market changes, innovate, and maintain a lean, efficient workforce.
The difference between outstaffing and outsourcing
IT outstaffing and IT outsourcing are distinct approaches to managing IT functions.
IT outstaffing involves hiring external IT professionals who work as an extension of the client company's in-house team, with the client maintaining direct control over project management and tasks.
In contrast, IT outsourcing entails contracting a third-party company to handle specific IT functions or projects independently, with the outsourcing provider taking full responsibility for project execution and management.
IT outstaffing offers greater control and integration of external resources into the client's workflow, while IT outsourcing provides a turnkey solution with less client involvement in day-to-day operations and decision-making.
Whenever you have questions about outstaffing or want to try this strategy for your project development – give MWDN a call and estimate the cost of your dedicated remote teammate.
partner, MWDN analyzes the norms of full-time hours and full-time employee benefits in countries where you hire to make sure that your dedicated developers work according to your agreement and get all the benefits they deserve based on their type of employment.
