Agency Fee

A fixed or percentage-based fee charged by agency for handling processes as contract handling, time sheet management, introducing candidates and other activities.

Agency Worker

Agency worker hired for a specific assignment, often with a defined scope or expertise. Agency workers have a labor agreement with the agency (Smelt). Receive a monthly salary, participate in pension scheme, receive holiday payment and are entitled to take holidays. The agency (Smelt) remains the legal employer. An agency worker can be sourced by a supplier/agency (Smelt) or directly proposed by the client.

Assignment

A defined piece of work or project for which a contractor, self-employed professional, or other external expert is engaged. It includes start and end dates, scope of work, milestones and agreed terms.

Assignment Check

A simple pre-engagement assessment to determine whether a contractor or self-employed professional can be hired in a compliant way. This includes reviewing the nature of the work, level of independence, and legal classification (e.g. to avoid misclassification or disguised employment).

Billable Hours

The hours a professional has worked for the client, which are approved and invoiced.

Candidate

An individual who is being considered for an assignment or project role, either sourced by a supplier or directly proposed by the client.

Contractor

Agency worker hired for a fixed period and a specific assignment, often with a defined scope or expertise. Contractors have a labor agreement with the agency (Smelt). Receive a monthly salary, participate in pension scheme, receive holiday payment and are entitled to take holidays. The agency (Smelt) remains the legal employer. An agency worker can be sourced by a supplier/agency (Smelt) or directly proposed by the client.

Contingent Workforce

All professionals hired on a temporary basis, including freelancers, contractors, payroll workers, and secondees.

Dashboard

An online interface provided by Smelt Interim (flex.smelt.nl) that gives the client real-time insights into all active professionals, contracts, timesheets, invoicing status, and key performance indicators. The dashboard supports transparency, control, and informed decision-making throughout the external workforce process.

Deliverables

Agreed-upon results or outcomes within a project, often linked to payments or milestones. This applies to Self Employed Professionals but can also be applicable to agency workers.

Detaché / Secondee

See Agency Worker for the definition of the term.

Freelancer / Self-Employed Professional (SEP)

An individual working on a freelance basis. A freelancer/self-employed professional operates independently and is not employed by either the client or Smelt. They can be sourced by a supplier/agency (Smelt) or directly proposed by the client.

Managed Service Provider (MSP)

Smelt acts as an MSP when managing the full external hiring process for a client: from sourcing and contracting to invoicing and compliance.

MSP Fee

A fixed monthly fee paid by the client to Smelt for taking up the MSP role, including managing all aspects of the external workforce. This includes sourcing, contracting, compliance checks, onboarding, timesheet processing, invoicing, and creating and maintaining the client dashboard.

Milestones

Specific points in a project that mark progress and may trigger a partial payment. Often used in Statement of Work (SoW) contracts.

Milestone Approval

The formal confirmation by the client that a predefined project milestone has been completed. Required before the associated payment is processed.

Onboarding

The process of welcoming and integrating a professional into the client’s team. Includes administrative setup, access to systems, and initial briefing.

Payroller

Agency worker hired for a fixed period for a specific assignment, often with a defined scope or expertise. Contractors have a labor agreement with the agency (Smelt). Receive a monthly salary, participate in pension scheme, receive holiday payment and are entitled to take holidays. The agency (Smelt) remains the legal employer. A 'payroll' agency worker is directly proposed by the client.

Pre-Identified Candidate / Self-Employed Professional

A professional selected or proposed by the client before involving Smelt or a supplier. Often refers to freelancers or contractors known to the client, for whom compliance and onboarding still need to be arranged.

Rate Card

A pricing structure that defines standard rates per role, seniority level, and contract type.

Statement of Work (SoW)

A detailed project agreement that outlines deliverables, timelines, responsibilities, and payment terms. Common for project-based hiring.

Supplier

Smelt acts as the sole supplier of external professionals, including contractors, payroll employees, and interim managers. Smelt is responsible for sourcing, contracting, and managing these professionals on behalf of the client.

Time and Materials (T&M)

A contract model where professionals are paid for actual time spent and materials used. Often used when project scope is not fixed.

Timesheet

A weekly or monthly record of hours worked, submitted by the professional or agency for approval and invoicing.

Timesheet Approval

The process by which a client or project lead verifies and confirms the hours submitted by a professional, before payment or invoicing can occur.

Master Service Management System

A digital platform (flex.smelt.nl) used by Smelt and its clients to manage the full lifecycle of external professionals such as agency workers and self-employed professionals: from request to payment.