Workers employed by a third-party could be a risk for your business

Workers who are not directly employed by a business but are doing work for it could pose a risk to the business.

Risk Management News

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Workers who are not directly employed by a business but are doing work for it could pose a risk to the business. That’s according to Joel J. Greenwald, the managing partner of employment law firm Greenwald Doherty. Writing at forbes.com Mr Greenwald warns that in situations such as a franchisor of a fast food company training its franchisees’ staff or a delivery firm using agency staff there could be circumstances where the franchisor and delivery firm could be considered ‘joint employers’. Although businesses have an element of responsibility to all those working or visiting their premises Mr Greenwald’s point could extend to issues such as pay and benefits. One of the key deciding factors is if the business has “direct and immediate control” over the worker and this can include; being involved in the selection process; paying the worker or having a say in their remuneration; and directing the worker’s day to day activities. The exact details of contracts and arrangements can make a big difference to whether or not the ‘joint employer’ rules apply and are best discussed with your legal advisor. 
 

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