Statement (I): Employee leasing is a contractual arrangement in which the leasing company is called Professional Employer Organisation (PEO).

Statement (II): In employee leasing contract, the leasing company provides employees for non-specialised areas of work.

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The correct answer is Statement (I) is correct but (II) is incorrect.

Key Points 

• Employee leasing is a partnership between a professional employer organisation (PEO) and a client business where the PEO serves as the employee's formal employer while the employee is employed by the client business.
• This has the advantage of giving the client firm a worker that does daily activities for the business.
• For insurance and tax purposes, the PEO acts as the "Employer of Record" (EOR), which effectively means that the PEO hires the person on behalf of the client business. So, we can say that statement (i) is correct.

• Using an employee lease agreement, a firm can establish the terms and circumstances for "leasing out" or contracting out an employee's services.
• Employers might be leased out by companies to cut administrative or benefits costs.
• This arrangement may be regarded as a contract between the employer leasing the employee and the party using the employee's services. So, we can say that statement (ii) is incorrect.

Hence, with the help of above we can prove that Statement (I) is correct but (II) is incorrect.