Some groups are calling it systematic and deliberate wage theft, others (slightly more diplomatic) are calling it a labour friendly campaign, but there is a tidal wave of turmoil brewing in the trucking Industry of the Ports of Los Angeles.

A report entitled “The Big Rig Overhaul: Restoring Middle-Class Jobs at America’s Ports Through Labor Enforcement” is a collaboration between three organizations alleging years of what they call the “enormous scale and shocking costs of an illegal business practice used by employers..” to bring attention and demand restitution and change to the industry. The National Employment Law Project, The Los Angeles Alliance for a new Economy and the Change to Win Strategic Organizing Center allege that worker misclassification in classifying port truckers as Independent Contractors instead of Employees became the port industries business model and was in fact a “scam”.

The numbers in the report allege a 1.4 billion dollar (includes wages and lost state tax revenue) misclassification scam that involves 60% of port truck drivers. Amounting to lost wages and benefits translating to 5,072$ per driver, per month.The report was published in the hopes to leverage Congress to pass legislation including The Payroll Fraud Prevention Act, The Clean Ports Act of 2013, and the Fair Playing Field Act of 2012.

From a Contingent Workforce Management perspective, the main point of emphasis and what it may come down to in the courts to deem who (if anyone) is in fact responsible for this misclassification will rely on the Nature of the Working Relationship between the alleged Independent Contractors and the trucking companies themselves.  The CRA (Canada Revenue Agency) and IRS (Internal Revenue Service) do have a different set of standards in how they define the classification of workers, but where they agree in terms of how they view this report will be that:

A) They do not differentiate between errors of omission and errors of commission. If misclassification occurred, the company will be liable, regardless of intent.

B) Determining of the amount of control a company can have in regards to the daily tasks of an independent contractor. Two instances of note in this example would fall under Exclusive Service, and Supervision. (Both are further defined below)

Supervision and Service

 

While the outcomes of this report remain unclear at the present time, there was fair warning that 2014 would be a year of heightened scrutiny at all levels regarding worker misclassification. If nothing else, the groups involved in the allegations of this report shows that those warnings are true.

 

Are you properly managing your risk? Get a free risk assessment from CWS here

 

Amidst a flurry of political and social controversy, the Olympic Games are underway, and for the international firms responsible for staffing the Sochi Games, they hope it’s all downhill from here.

Sochi’s three official staffing Suppliers: Adecco Group, Kelly Services, and Russian firm Exect Business have put three years of work into building the Contingent Workforce for the Olympic Games and the sheer numbers are staggering. The total number of temporary workers for the games may top 150,000 people, and that isn’t counting the roughly 25,000 volunteers that will be lending a hand to make sure the games run smoothly. Among those 150,000 workers 65,000 are skilled workers. These skilled workers were culled from a worldwide recruiting search, offering the opportunity for the organizing committee of the games the chance to hand pick expertise from the very best the world has to offer, as well as the chance for those skilled workers to show off their talents in front of an audience like no other. On paper it’s the perfect trade off, but somewhere along the way things went off the rails. Sochi-2014-Company-Olympics

Vancouver temporary worker Johnnie Balfour’s exposing blog posts and statements about the treatment of himself and his team at the games has been well documented. (Go here to catch up) Even an entire twitter feed, @SochiProblems emerged to document all the issues journalists and athletes alike had encountered upon first arriving in Sochi. Littering news feeds around the world with pictures of brown water and unfinished construction. While these images weren’t exactly the image that the staff and Olympic Committee wished to have us see, the big picture moment of truth for the staffing agencies of the games going forward may not be boiled down to pictures or politics. It may boil down to the larger issues of transparency and control.

For those in the business of the Contingent Workforce this is an issue of risk debated and managed daily, as the decision to either outsource or direct source (hire from within) is weighted against the factors of cost, availability of resources (skills), and time. As the world’s eyes turn to Sochi for the games, administrative/payroll miscues and a lack of communication is not the way to put our (those in the contingent workforce solutions business) best foot forward. In this case, while a pool of extremely talented and eager workers were recruited and gathered for the games, it seems as though when they got there, the communication regarding their income was (at least according to Balfour) left open to interpretation . There is nothing that will turn an IC (independent Contractor) off faster than the notion that they’re not getting paid, and in Balfour’s case, seemed to be the last straw.

As an Employer and a Business you only get one chance to make a first impression with your Contingent Workforce and Independent Contractors. Making sure your T’s are crossed and your I’s are dotted is an absolute must in an industry where word travels fast.  If your goal is to recruit and retain top talent, miscues are simply unacceptable. In the case of Balfour, the simple and affordable option of an IC Compliance and Payroll service could have been made available to figure out payment options and schedules before he even left for Sochi, and in the process, saved the staffing agencies responsible for 150,000 workers the potential firestorm of being made to look as a willing participant in the headache inducing and livelihood threatening payroll practices of the Sochi Games.

There is truly no replacement for transparency and efficiency in this business and the sheer size and publicity of this only goes to remind us that even a small administrative miscue or oversight can become a giant problem.    

If all goes according to plan when the games close on February 23rd, viewers will hopefully be inundated with images of the athletes’ fists in triumph, their tears in defeat, and memorable moments of sportsmanship and diplomacy. Not pictures of brown water, unfinished construction, and the supposed mismanagement of temporary workers. If the stumbles in the weeks leading up to the event are any indication, the staffing agencies may be the ones in the front row cheering the loudest for the athletes to steal back the spotlight.

After a rather flat bill rate for Contingent Workers in 2013, analysts are predicting a sharp rise in the latter half of 2014. According to Robert Half Technology and The Creative Group, here are the positions that will see the sharpest rise in salary in 2014

money 1. Mobile applications developer: Experienced mobile applications developers can expect to see the largest increase, 7.8 percent, in starting compensation of any tech position listed in this year’s Salary Guide, with salaries ranging from $100,000 to $144,000.
2. Business intelligence analyst: Skilled business intelligence analysts can anticipate a 7.4 percent boost in starting compensation in 2014, with salaries ranging from $101,250 to $142,250.
3. Information systems security manager: Information systems security managers who can assess and re-mediate vulnerabilities, threats and intrusions are in demand, and are projected to see a 6.8 percent bump in base compensation this year, with average starting salaries between $115,250 and $160,000.
4. User experience designer: User experience designers can expect to see average starting salaries between $78,000 and $120,000, up 7.5 percent from 2013.
5. Mobile designer: Skilled mobile designers can anticipate average starting salaries to increase 6.3 percent in 2014, to the range of $66,000 to $103,000.
6. User experience specialist: User experience specialists can expect to receive base compensation in the range of $79,000 to $118,000, a gain of 5.9 percent over last year.

 

*Source-SIA (Staffing Industry Analysts)

Last Tuesday, President Obama delivered his administrations’ most recent message to the people of the United States– and for those who’ve grown accustomed to these things, it was the usual banter and pageantry of goals and aspirations to improve the nation. However, among the policy discussions and rounds of applause was one nugget in particular that is relevant to those of us who follow such things. The impending rise of the minimum wage (at least for federal contracts) and its impact to the issues surrounding worker classification(s) and employee/employer relations. President Obama didn’t directly address the situation, but in an online piece for Forbes, columnist Robert Wood, put the issue on the table. “Did President Obama just make independent contractor v employee issues even bigger? Arguably, yes.”  obama_sotu_dann.photoblog600

Wood does play down the notion that every employer in the country is suddenly looking for loopholes or to reduce labor costs in the face of new legislation such as the minimum wage debate or healthcare, but he cautions both employers and employees to take a hard look at their relationship with one another.

In 2010, Department of Labor Secretary Seth Harris quoted a study that suggested up to 30% of employers misclassify workers, whether by simple oversight, or willful negligence, and the Government Accountability office is also quoted in Harris’ address as stating the IRS is losing billions of dollars in revenue.  Harris goes on to suggest that this type of negligence and oversight is hazardous to the economy, and causes the long term effects of a loss in tax revenue, and public funded programs such as Social Security. Even as recently as two weeks ago, online publication Benefitspro suggested that 2014 would be the year lawmakers and regulators firmly crackdown on misclassification. However, what may be the most glaring statements from both the DOL study, Seth Harris, Benefitspro, and Mr. Wood, is that there will be no compromise in terms of how misclassification is treated by organizations like the IRS or the CRA. In other words, it doesn’t matter how it happened. All that matters is that it happened at all.

So, left with this potential crackdown the natural follow up is what’s next? Since every study and report indicates that contingent workforces are not going anywhere anytime soon,  and in fact, will only continue to grow, 6a00d8345675df69e20167686b88a0970b-400wiIndependent Contractors, Employees, and Employers need to have crucial conversations regarding the nature of their relationship. Contracts alone won’t cut it anymore.  For employers looking to navigate the complex worker compliance labyrinth, there are plenty or resources at their disposal, but what is proving to be true as more and more non-compliance issues are raised on both sides is the need for specialists in this field.  With the intricacies of legalese and the monotony of ever changing legislation, oversights can become easier and more common–but beyond all that it really goes back to a simple concept of clear communication and discussion of needs. What does the employer specifically require? What does the potential employee/contractor require? How will this relationship be supervised? Where can we educate ourselves to make sure our relationship will be compliant with the law? In most cases, the proper classification can be quickly deciphered with just a few simple conversations, and for employers looking to navigate the  complex worker compliance labyrinth, there are plenty or resources at their disposal.

While the reasons and needs of a contingent workforce may differ by the industry, there’s seemingly one thing that everyone with stake in the state of the workforce can all agree on.  The no-nonsense and zero tolerance approach of both lawmakers and regulators looms large on all parties involved in 2014, and taking the proper precautions is paramount in the face of liability enforcement policies, changing legislation, and the increased ability of government agencies to share information.

 

*Contingent Share of Workforce courtesy of the SIA

 

Attend any recruitment or Human Resources conference and you’ll know that these industries are filled with mind boggling industry jargon. It can be overwhelming to try to understand all of it. One term that is particularly confusing is “co-employment”; however organizations face huge risks by not understanding this concept and taking the necessary steps to ensure they are protected against it.

Co-employment occurs when two or more legally separated employers share potential or actual employer responsibilities with mutual employees between the two organizations. It means that the two companies jointly employ the worker.

While this situation can be intentional, employers do not want co-employment situations when they are hiring contract workers. Employers do not want to be responsible for employment responsibilities and liability for their contingent workforce.  However, while employers may think that their agreement outlines that the contract worker is self-employed, the CRA may actually find that a co-employment arrangement actually exists.

What happens if the CRA does find that your organization has a co-employment arrangement with your contingent workforce? The classic example of the consequences of co-employment is a case in which Microsoft had to pay $97 million to a group of temporary workers that were deemed employees. Because these people were deemed employees, they were therefore entitled to benefits and additional pay, and Microsoft had to pay these workers what they were owed, along with a hefty fine. Other organizations could be faced with similar penalties if the CRA finds that their contract workers are actually employees.

This is a huge risk that companies need to address. Co-employment sounds like another industry buzz-word, but employers cannot afford to ignore or misunderstand the consequences.  The CRA has recently begun to increase its investigation into co-employment and contingent worker classification, and so you need to make sure that your organization is compliant with employment laws in order to mitigate your risk.

For more information about how you can mitigate your risk against co-employment, visit the CWS website or contact:

Christina Fabugais
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

The courts continue to deal with ongoing contract labour disputes due to lack of due diligence in consistently classifying workers and ensuring that contractual agreements are legal and fair. The following FedEx lawsuit from Helena, Montana exemplifies many of the complex legal issues that can arise when organizations have not properly protected themselves.

For the full article, click here

Federal court judge Charles Lovell in Helena has said that the arbitration clauses in FedEx contracts with its drivers are so one sided that they are “Unenforceable”, and has ruled that the lawsuit move forward without arbitration. Lovell also ruled to dismiss four of the eight complaints made by Tracy LaSalle in his wrongful discharge lawsuit filed against FedEx Ground Package System. The dismissed complaints include malice, violation of Montana’s independent contractor law by misclassifying him as an independent contractor instead of an employee, unjust enrichment, and not paying him for overtime.

Lovell wrote that, under the law, an arbitration provision is unenforceable when it is both “procedurally and substantively unconscionable”, and this case falls into that area. Lovell ruled to wave the arbitration primarily because it unfairly requires “binding arbitration of the weaker bargaining party’s claims, but allows the stronger bargaining party the opportunity to see judicial remedies to enforce contractual obligations”. Lovell stated that “This type of disparity can become so one-sided and unreasonable that the agreement becomes unconscionable and oppressive.”

LaSalles’s lawsuit is part of a larger issue in which FedEx drivers argued that they were employees rather than independent contractors, and as such should be awarded overtime and holiday pay, and not be required to pay operating expenses for delivery vehicles, renting uniforms, and fuel.

In October 2010 a settlement was reached with FedEx that said the delivery drivers were, in fact, employees, but it also outlined a business model in which they could still be private contractors if they handled numerous routes instead of just one. Initially the required number was three, and LaSalle tried to sell his route. However, FedEx then changed the number of routes to two, and LaSalle’s sale fell through and he claims to have lost $175,000.

The October 2010 precedent setting settlement has had a large impact on LaSalle’s case and other subsequent trials. This case indicates that it is increasingly important for companies to perform the necessary steps in order to ensure compliance with contract labour law and tax regulations.

For more information about how your organization can mitigate contract labour risk, contact Contingent Workforce Solutions at:

Christina Fabugais
Marketing Manager
Contingent Workforce Solutions Inc.
Direct Phone:  416-642-9077
Toll Free:  1-866-837-8630 x9077
Email:  christina.fabugais@cwsolutions.ca

Volatility in the economy drives companies to hire more contract workers, and this is a trend that has become apparent in the last few years. Recent news of the world economy slowing further will only cause this trend to increase. Companies need to consider their contingent workforce as part of their total talent strategy, because they can no longer afford to treat permanent and contract workers separately.

While the downturn in the economy has driven the increase in contingent labour, many workers are also choosing contract labour as an alternative to permanent work. Contract Labour gives individuals the freedom to determine their own work schedules, be their own boss, and pursue work that they find challenging and rewarding. For many, this is enticing.

While the increase in contract labour allows companies to be more agile and better cope with specific needs, it also presents management challenges. Companies need insight into their contract workforce so that they can manage costs, ensure compliance with employment and tax laws, and be sure they continue to hire quality performers.

Human Resources Executive Online recently published an article detailing how companies need to better manage their contract labour. The article also described how “In organizations where contract labor isn’t managed by HR, there likely will be some resistance to change”. However, the benefits of properly managing contract labour need to be emphasized. The article gave some advice about influencing key people to consider a different management approach, including:

  • Illustrate why it is important for HR to have control of all talent, whether that is due to demographic shifts or volume-hiring needs and to ensure workforce planning efforts align with business requirements.
  • Communicate the risk and rewards of not centralizing the contract workforce and how worker misclassification and improper budget alignment can be costly.
  • To ease the transition and get buy-in from stakeholders, help participants visualize the end result and how processes can come together to make using contract labor successful.
  • Make the connection between how optimizing all human potential — employees and contractors — can impact customer experience, sales and other business outcomes.
  • Take the time to update roles and responsibilities to gain visibility into how many contract workers are filling job descriptions that are actually full time jobs[1].

Today, contract labour is unavoidable. Workers are increasingly finding that contract work suits their lifestyle and turbulent economic times require companies to look for alternative staffing strategies. It is important that key people recognize the need to revamp their company’s HR department to meet today’s needs.

For more information about how we can help you better manage your Contract Labour, click here

[1] Orler, Elain. Human Resources Exectutive Online. http://www.hreonline.com/HRE/story.jsp?storyId=533340887

This week is the 17th annual National Payroll week, which is designed to build greater awareness of the size and scope of payroll and its impact on business, government and employees across Canada[1]. The workforce is constantly evolving, requiring today’s payroll professionals to keep up with ever changing employment and tax legislation.   Contract labour has emerged as a major workforce trend and this has impacted traditional methods of payrolling, which are typically designed for full and part time employees.

Contract labour has increased in Canada; a trend that was driven by the downturn in the economy as more companies began to hire contract and temporary labour in order to adapt to organizational needs and changes in the economy.  Since 1997, the contract labour market in Canada has grown by 300%, and it currently accounts for 25 to 35% of the North American workforce, bringing in 250 billion dollars annually.

The shift in the workforce toward contract labour has had an impact on the efficacy of traditional payrolling methods. It is now important that organizations execute the necessary due diligence when administering and payrolling contract and temporary workers. In the last 18 months Canada Revenue Agency (CRA) has increased the frequency of Worker Classification Audits to determine whether organizations are properly classifying their workers as employees or self employed contract workers. Without proper documentation and administration, organizations face the risk of having their contract worker deemed an employee. They are then subject to pay up to millions of dollars in owed payroll remittance premiums, back-taxes and wages.

Contract workforce administration specialists like Contingent Workforce Solutions (CWS) assist organizations with identifying worker classifications and ensuring proper government remittances; this mitigates the risk of worker misclassification and can save organizations millions of dollars. Jeff Nugent, Managing Director of Contingent Workforce Solutions believes, “Companies can no longer afford to do without the tools that allow them to account for and manage contract labour.  This is not a luxury item – it’s a need.”

About CWS: Contingent Workforce Solutions is a business process management and advisory firm that help its clients gain control of their contract workforce. With close to 25 Years of Experience in Contractor, Temp staffing and Vendor Management Solutions, CWS is a partner that you can trust. Contingent Workforce Solutions’ was recently recognized in Profit Magazine’s 12th Annual PROFIT HOT 50 Ranking as Canada’s top new growth company, and was also awarded LoyaltyOne’s 50 Most Engaged Workplaces.


[1] National Payroll Week. The Canadian Payroll Association. http://www.payroll.ca/AM/Template.cfm?Section=National_Payroll_Week

For more information about how you can update your payrolling system to match the needs of today’s workforce, visit our website, or contact:

Christina Fabugais
Sales & Marketing Manager
Phone: 1-866-837-8630 Ex. 9077
Email: christina.fabugais@cwsolutions.ca

Hiring contractors is generally deemed necessary in most organizations for a variety ofreasons. The main reasons for hiring contractors are: where a company requires external resources to augment a core group of internal employees for a set period of time or when a company lacks a certain set of expertise that cannot be found internally. In any event with the Demographic shifts and the war for highly skilled talent still alive the hiring of contractors is a growing trend not a declining one.

Unfortunately many HR folks still may not view the use of contractors as essential. In fact many HR professionals are often unaware that hiring contractors is happening right under their noses. This is often since contractor hiring takes place at the decentralized line manager level and is handled through an invoicing scenario vs. a HRIS system. Now due to the volume of expenditure on contractors there is a growing trend of Contractor Program Management becoming the domain of Procurement versus HR.

I am hopeful that HR’s prerogative will soon change since there is a growing need for contractors to be included in companies overall Talent Management strategies vs. seen as an external short term occurrence. With this need in mind, HR and Procurement will need to work together to manage this essential source of Talent as partners in order to balance the spend management vs. talent management dynamic.

Most of the information published publicly focuses on how contractors can ensure that they are to be deemed “self employed” vs. an employee and not much has been published on how employers can help protect themselves and mitigate the risks of co-employment (i.e. having your contractors deemed employees of your company by CRA or another government body).

In saying that, employers should not dismiss information written so far when developing their policies around the hiring and usage of contractors. These writings are good “tests” that will help in understanding some of the clear differences in day-to-day working scenarios. Also, the more that both employers and contractors do to ensure proper classification of their employment status the better.

First let’s understand why employers would want to ensure that their contractors are NOT deemed employees by CRA. The following are some of the consequences or risks that employers face if they have the unfortunate situation of having their contractors deemed employees:

1.Government Payroll Deductions: Your Company would be responsible for the Government Payroll deductions. This not only includes the EI (Employment Insurance) and CPP (Canadian Pension Plan) retro actively, but also the Income Tax deductions that you as the “employer” would have been responsible to withhold. Therefore if that “Consultant” happened to be aggressive on their tax returns you may be deemed liable by the government. In most cases this equals big dollars.

2.Law Suits for Employee Benefits: Your Company could be liable for the retroactive benefits that that those contractors would have been eligible for if they were employees of the company during that period of time (i.e. benefits, termination, pension, etc.). The precedence setting case on this topic was Microsoft who got hit for over $97 Million in benefits in addition to the ongoing legal cost of defending themselves.

3.Reputational Risk:This would tarnish your company’s brand that it portrays in the market place. Headlines reading “improper accounting practices” or “leaves employees hanging without unemployment insurance” are generally not the branding that any company seeks out.

Many of you are saying to yourselves OK these are only risks if we get caught.

Guess What?

With the economic uncertainty, these are the times that there is a higher probability that you will be caught.

With people being let go and contractors being terminated this is the time when your “contractors” are applying for employment insurance and it is at this time when both the contractor and the government become aware that the situation may have not been managed properly and the government investigation starts.

If you currently do not have a contractor management policy in place I would recommend you have one in place before a CRA or EI audit takes place. It helps to have documented procedures and processes in place to display that effort has been taken to manage things properly.

To help you define or enhance your policy to mitigate risks when hiring and using contractors the following are some best in class ideas:

NOTE: Before getting into the checklist the best advice I could give any employer would be to: BE ORGANIZED and BE DISCIPLINED!

It’s great to develop policy but if no one takes them seriously, ensures completeness of process and your process is made up of lots of “exceptions” you are not doing anything to ensure that you will come up clean during an Audit. Ideas that could help reduce the Employer Risk of Co-Employment :

1.ContractDocumentation–There must be a documented contract in place (signed and stored in a secure place) that clearly outlines the relationship, the responsibilities and meets the test of defining an independent contractor relationship.

2.Contractor Classification–Within Canada there are various classifications of “self employed individuals including incorporations. In actual fact companies can deal with all classifications of contractors as long as they are administered properly. Having all of your consultants classified as incorporations is positive but not bullet proof in proving separation. There have been many cases that CRA has disqualified an incorporation based on the situation. From a talent management standpoint only dealing with Incorporations may restrict your company from dealing with certain resources that you would like to engage with. Key points to ensure your contractors are classified properly include having proper proof of the business entity and associated tax numbers and ensuring that proper payroll remittances are being done.

3.Proper Government Payroll Remittances–One of the keys to mitigating risk is to ensure that proper payroll remittances are being completed. If the Government is receiving its remittances then there is no reason for them to investigate a situation. In saying that it’s important to monitor that the contractors or the 3rdparty that you have engaged to administer the contractual relationships to ensure they are making the proper remittances on the contractor’s behalf. Having the contractors on your own employee payroll is a big NO NO. Although it will allow you to monitor proper government payroll remittances it will be potential evidence that this resource was acting as more of an employee than a separate contractor. Auditing each one of your contractors payroll accounts is burdensome and not a realistic option. Generally 3rd party companies that specialize in providing contractor and payrollingsolutions are your best bet to ensure completeness and real-time reporting. As an FYI these companies are not the ADP’s and Ceridian’s of the world although they may tell you they may be able to do it for you. Running them through ADP or Ceridian without a 3rd party administering the contracts is similar to running them through your own company payroll and should be avoided.

4.”Looks like a Contractor, Smells like a Contractor” Test -I will refer you to my previous post on this string that described some of the things that can define the day-to-day working relationship i.e. tools used, direction given, profit or loss risks, integration with your employee workforce, etc. Although these are often written to help guide the contractor it’s important to that these types of issues are addressed and adhered to when creating employer side policy.

5.Contractor Commercial Insurance -This sounds like a weird one. But it is actually a very clear test of self employment that gives proof to a self employed mentality of a contractor. If the contractor has paid money and taken the time to obtain commercial liability insurance and or errors and omissions insurance, the government sees that as a true effort in being made to be a separate enterprise. In saying that, in my experience I know only a very small percentage of independent contractors that have insurance or are willing to pay the large premium that this type of insurance may cost. Often some 3rdparties or staffing agencies will offer umbrella coverage under their policy. Although this sounds good it does not help mitigate the risk of co-employment. The contractor must have its own insurance to protect the employer and I advise that employers gain proof of this insurance when signing up a contractor. As a solution a few innovative 3rd party payrollingcompanies may be able to facilitate contractors in obtaining separate insurance at reasonable premiums and then tracking the proof of this insurance as part of their overall process.

6. Documented proof of Contractor Classification Education–One of the reasons the Government has put legislations in place concerning co-employment was to protect contractors/employees from unscrupulous employers that hire the resource as a contractor vs. employee in order to avoid paying taxes and benefits. When a process of educating the contractor is well documented to prove the contractor was well aware of the situation, the pros and the cons, as well as their responsibilities etc. the risk of being deemed in the wrong is lessened and it should hopefully help in avoiding an Enterprise wide audit of ALL contractors across the organization.

7.3rd Party Representation of Independent Contractors-One of the cleanest ways to ensure a separation between your contractors and your company is to have a 3rd party represent them and administer their contracts on your behalf. This passes the contractual employment relationship to the third party. In doing this please BEWARE that passing this responsibility on to a company that is not properly administering the contracts or completing government payroll remittances correctly does not protect you. Without proper administration and remittances as well as complete proof and documentation of the separation, CRA and other government bodies will look at the final end-employer (that usually has the deepest pockets) to investigate. Good 3rdparty firms will advise you on policy and methodologies to ensure risk is mitigated and follows up to manage the contracts and payrollingto ensured a disciplined complete approach is in place.

Whatever you decide to do –it is also wise to seek the advice or approval of appropriate legal counsel within your organization –every company is different and your legal counsel is there to advise you on what works for your organization.

Contract and temporary talent now accounts for over 25% of the Canadian workforce.

Contingent Workforce: The New Age of Talent – This session will be a wake-up call for Talent Acquisition and Talent Management Leaders who are now playing catch up to understand this rapidly expanding and important part of their organization’s talent pool.

Jeff Nugent will moderate a panel of Senior Contingent Workforce Practitioners who will explore topics such contractor employment law risk & contract talent management trends and best practices. This session will also discuss the need to integrate contract talent management into the overall talent acquisition and talent management strategy and will provide practical experience in discussing how to build the business case in centralizing the management of contingent labour within the Human Resources function.

Session Information
Date: Wednesday September 22, 2010
Time: 3:30-4:30pm

About the 2010 Recruitment Innovation Summit

When: September 22-23, 2010
Where: The Metro Toronto Convention Center

The 2010 Recruitment Innovation Summit is the 4th annual conference produced by RNG/HRNG Events designed for HR, Recruitment and Talent professionals across Canada. This year’s Recruitment Innovation Summit focuses on “what’s new” in recruitment and brings together the most talented experts and corporate recruitment professionals to share best practices in Talent Management and Recruitment.

For more information or to register for the 2010 Recruitment Innovation Summit visit http://www.hrng.ca/Conference2010/events.php

Tweet about the Recruitment Innovation Summit and see what other attendees are saying about the event #RISummit