In our rapidly changing business environment, growing organizations are now using diverse business models to accommodate their business needs. Indeed, in today’s ODE (on-demand economy) or “gig” economy, businesses are now resorting to the use of diverse workforce models across the supply chain. Companies are increasingly relying not only on their own workforce to get the job done, but also on the external or contingent workforce.
Some economists say that 50% of the workforce will be composed of “non-employees” by 2020, as companies are using their “own” workforce (employees) in the traditional model; but more and more companies are often utilizing an “external” or contingent workforce.
This trend raises complex HR labor law (and even tax) issues and may expose companies to legal, financial, criminal and reputational risk.
In this environment, it is key to have a good grasp of the diverse legal issues relating to the contingent workforce to ensure that the appropriate compliance tools are put in place to avoid unanticipated risks and costs.
Read this edition of EY’s Labor & Employment Law Global newsletter, which explores the Contingent Workforce across 26 jurisdictions.
Roselyn Sands – EY’s Global and EMEIA Labor & Employment Law Leader