With temporary workers, flexibility’s the name of the game
Read Article by Tavia Grant
With temporary workers, flexibility’s the name of the game
Great insight article from the Globe and Mail extolling the value contingent labor can bring to any corporation. Temporary labor continues to grow in its use from both large and small companies throughout Canada and globally. However, as any company begins to use temporary labor for the first time or strategically expand its usage footprint, there are many “buyer beware moments”.
Contingent labor management can quickly become like “herding cats”. Without proper management and program processes in place the program can rapidly become out of control in 3 key areas:
- Costs
- Compliance
- Control
CRA continues to ramp up its inspection of Independent Contractors (ICs) that might be employees misclassified according to CRA. That can put the company at a potential tax risk with CRA if they determine that the IC is not an IC, but in fact your company’s employee. Also, there are potential risks with the extended usage of temporary personnel in large numbers or ICs in regards to co-employment legal exposure.
Conclusion: Temporary labor is a great asset to any organization in terms of giving them the flexibilities to manage their productivity in a cost effective way. Just stay apprised of the risks and manage accordingly, “An ounce of prevention is worth a pound of cure”.