Co-employment. We’ve all heard of it. But what does it really mean and how does it impact your business?
Co-employment can be best described as when a worker has an employer-employee relationship between two or more companies, where both companies have a perceived responsibility to provide benefits or other legal employer duties.
Employers can enter the gray area of co-employment when contracting contingent workers for an extended period of time. Frequently what starts as filling an immediate need turns into a long-term project, which means worker contracts get extended.
The longer a temporary worker is at an organization, the more they start to be seen as a full-time employee. So what benefits and compensation should they be getting?
Understanding co-employment and how to mitigate risks is critical to safeguarding your business against serious consequences. These risks can include litigation, fines, tax implications and a negative brand perception.
Working with a managed services provider to acquire contingent labor can help reduce co-employment risks.
In a managed services model, the provider assumes responsibility for HR functions for contractors while affording partnering organizations the flexibility to use workers’ unique skills sets. The employer assumes ownership of the day-to-day supervision of the contractors’ tasks, including working conditions.
Finding the right managed services provider to help navigate co-employment risks is important to protecting your business. An ideal partner will have a deep understanding of the laws surrounding co-employment and can address potential issues that arise, and most importantly, take on the appropriate level of responsibility to insulate you from co-employment risks.
As the need for niche IT skill sets increases, companies will leverage contingent labor well into the future. Managing and mitigating co-employment risks will be critical to ensuring success.
For more information, contact TEKsystems. http://www.teksystems.com/