The benefits and pitfalls of employing independent contractors within the gig economy
Image credit: Plumber, Amsterdam, November 5, 1951; Photo Ben van Meerendonk / AHF, IISH Collection, Amsterdam
Following a landmark legal case for workers’ rights, freelance workers in the so-called gig economy are now expecting huge ramifications.
It’s difficult to differentiate between knowing when a self-employed contractor with no employment rights becomes an employee that is entitled to paid holiday and national minimum wage. As a result, UK employers in the gig economy are now being warned to be more cautious when hiring contractors.
But what are the benefits and pitfalls of hiring contractors?
An advantage of hiring a contractor and/or subcontractor is that they can start working at very short notice. Employers can also specify the type and duration of contract required.
At the other end of the scale, a contractor/subcontractor may also cost a business more than the equivalent daily rate for employing a permanent contract worker, which has the potential to cause workplace disputes.
Owner of Cluer HR, Kirsten Cluer, offers insight in to this topic, emphasising that employers should always take caution when weighing up the options of hiring a contractor. For the full article, see here.