Date post: | 18-Jan-2015 |
Category: |
Business |
Upload: | lisa-chaves |
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Staff Leasing Company Labor Issues - Taking Precautions
The leasing of
employees by businesses
has significantly
increased in recent
years.
Primarily because
entrepreneurs are constantly
on the lookout for ways to
reduce operating costs
and be more flexible in
terms of their
workforce.
The problem is that this
business solution often causes
issues like the question as to who
is the official employer of the
leased team.
Is it the staff leasing company
or the client business whose
assigned functions are handled exclusively by
the leased team?
It is important to answer this
question because it helps
determine which entity is
responsible for such things as
tax liabilities
employee benefit plans and
labor union regulations
The issues are made even
more complicated when you
choose to lease staff from an
offshore location
where the laws on labor may
differ significantly from your
country’s labor laws.
It therefore pays for you to
take some precautions that’ll
help you avoid legal hassles
related to labor issues.
1. Check License Requirements.
There are currently twelve states in the U.S. that require leasing companies to get a license. Once you’ve decided on an outsourcing destination, check if they require a license for staffing companies. If they do, be sure to hire only a company that adheres to the license requirements.
How to Avoid Labor Issues when Hiring a Staff Leasing Company
2.Learn the Law.
Its not enough to learn about license requirements; you also need to learn the laws governing leased staff to prevent any future misunderstandings and altercations. To be specific, you need to be well-versed in the laws concerning working hours, wages, safety, and health for leased employees.
3.Communicate.
A leased team probably already understands that they don’t have the same privileges as the on-site personnel of their client business. However, it still pays to make this point very clear from the outset. Explain to them the payment terms stipulated in your contract with the staff leasing company.
Some people believe that
leasing staff is the same setup
as hiring temporary employees
whereas others believe this is
an entirely different setup.
Whatever you believe, its
important to protect
yourself and your business
from possible legal issues
by heeding the tips
discussed above.
It pays to know how you
can protect your business
from possible labor issues
when you decide to hire a
staff leasing company.
Visit www.squarefishinc.com
Or call
+1-702-501-8277