I ran into an old colleague, who was telling me about her company’s plans to increase the component of contingent workers as a part of their talent strategy. She picked my brains on the issue of co-employment liability, its seriousness, and ways to avoid it. That interaction impelled me to write this post for others who may also be looking for similar insights.
Co-employment is when the same employee or group of employees have a legal relationship with two employers, both of whom have actual or potential legal rights and duties with regard to them. When hiring temporary workers through an agency, it is important to note that the staffing agency is the employer of record and is responsible for meeting all requirements of employment law.
The client can determine the duration of the assignment, control conditions at the workplace and supervise a contractor’s day to day work. The supplier’s obligations would include all activities will qualifying, paying and managing the performance of the worker.. It is necessary for companies to make informed decisions when engaging contractors to avoid incorrectly assuming employer responsibilities that could result in joint liability as a co-employer.
The supplier is responsible for all the following:
Addressing all employee performance issues as per the client’s feedback to avoid co-employment liability, we advise our clients to follow these steps:
You will find a lot more advise out there on this issue. While it is impossible to be absolutely sure that there is no risk of co-employment, I personally believe that the best ways to avoid this liability is to establish clear policies supported by pragmatic processes, educate your staff and maintain impeccable documentation which ably supports and demonstrates a strict adherence to the letter of the law.
Mail (will not be published) (required)
3 + five =
Thanks for Subscribing to DCR Blog.