Staff Leasing Company Labor Issues – Taking Precautions

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