This form of subcontracting is encouraged by the rigid restrictions French legislation places on laying off workers. During the 1970s these restrictions spawned a proliferation of temporary help agencies whose employees do not benefit from the same protective legislation. Another common arrangement is the use of so-called intérimaires, permanent employees of one firm with an excess supply who are loaned on a temporary basis to a firm facing a capacity constraint.

XREF: Connects to labor market rigidity discussions and the economics of employment protection legislation.

Diego Gambetta, Trust - Making and Breaking…, loc. 2487