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Professional Employer Organization (PEO)
Term Used Globally

Professional Employer Organization (PEO)

A service segment of the Payrolling/Compliance Industry primarily used in the USA, a PEO assumes, via contract, a significant portion of employer responsibilities and associated risk for either part or all of a client’s workforce. In this situation, employees are typically employed by the PEO but work on an indefinite basis under the control and direction of the client organization. PEO arrangements can be similar to HR Outsourcing though it is distinguished by a direct employment relationship between the workers and the PEO firm. While this is not a familiar service outside the US, it is known in certain countries such as the Netherlands.


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