The Benefits of Hiring a Contractor and/or Subcontractor
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This month, Kirsten Cluer takes a look into how hiring contractors and/or subcontractors can impact a business, by looking at the specific case of Uber.
Despite being independent contractors, Uber drivers are pushing to receive the national minimum wage in addition to paid holiday.
It’s now emerging that UK employers in the gig economy should adopt more caution when hiring contractors. This is due to the fact that it’s becoming increasingly difficult to differentiate when a self-employed contractor with employment rights becomes an employee that’s entitled to paid holiday and the national minimum wage.
Hiring a contractor and/or subcontractor can be beneficial to a business with regards to providing expertise knowledge or fast turnaround. They also provide flexibility for a specific job or task.
On the other hand, contractors/subcontractors can be more expensive for an employer, as opposed to paying someone else to take on the same job on a permanent basis. Additionally, by relying on temporary contractors, businesses will fail to develop skills in the same way that they would with permanent employees.
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