HomeEmployee ExperienceHR StrategyEmployers of Contingent Workers face legal risks

Employers of Contingent Workers face legal risks

  • 2 Min Read

UK employers risk further financial penalties as hiring managers don’t feel adequately equipped to address contingent worker employment laws.

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New findings from Cpl’s Talent Evolution Group, talent solutions specialists, suggest that change is required to close the employment law knowledge gap for hiring managers, as 94% of hiring managers agree that they need increased clarity regarding the legal distinctions between permanent employees and temporary/contingent workers.

The survey also discovered that almost a third of hiring managers do not feel adequately equipped to handle situations which may require knowledge of UK employment law if dealing with temporary and contingent workers – with contractual and termination issues (42%), employee benefits (32%), hours and overtime violations (29%) considered the biggest legality pitfalls.[AC2] 

When asked how businesses should invest in providing greater clarity and closing this knowledge gap, a quarter of hiring managers identified in-house training as the highest priority to keep HR and those involved in recruitment informed on updates to UK employment law, specifically relating to temporary and contingent workers.

“By working with a diverse body of clients, from fintech to healthcare, we have found that guiding clients through the everchanging legal landscape and providing expert counsel is highly valuable,” says Áine Fanning, Managing Director of Cpl’s Talent Evolution Group.

“We provide MSP and RPO services, filling in knowledge gaps to prevent our clients from participating in an improper practice that may result in them facing fines or damaging their brand’s reputation.”

A few months ago, the UK Government named over 200 employers that had failed to pay their lowest paid staff the minimum wage, following an increase in the National Living Wage and Minimum Wage.

A combination of small and large businesses, have since been ordered to repay workers and face penalties of nearly £7,000,000.

However, only 20% of hiring managers consume content on employment law, underscoring the critical need for businesses to bridge the knowledge gap regarding contingent and temporary workers among hiring managers.

“Following a shift towards more contingent and temporary workers being employed by UK businesses in the last few years, it is essential that businesses get up to speed and are prepared to handle legal issues impacting contingent and temporary workers – to protect organisations, hiring managers and employees from the associated risks, such as fines and damaged brand reputation.” Fanning adds.

Companies should either enhance their internal training efforts or collaborate with an experienced talent solutions partner to mitigate the risk of improper practices and potential consequences.

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