Employees Versus Contractors: Ensuring Compliance

Employees versus contractors

Whether a business has full-fledged employees or contractors signed on for work, the necessity for ensuring compliance is always alive. Both work types carry their own set of unique attributes and characteristics, and as such, complying with the law differs between the two. It is important that you understand the ramifications and challenges each of these employment types are attached to, to ensure compliance issues won’t unravel the progress your business has made.

Often times businesses opt to utilise the strengths of one of these work types, purely on the basis of any superficial pros that are perceived to come part and parcel with the practice. This can lead to an indifference for the laws that govern the workplace, and can often mean what was thought of as a good idea to begin with, in fact turns out to be a damaging decision for the business.

One common, deliberate compliance issue involves shady businesses that may choose to only sign on contractors, to avoid complying with regulations that regard employees. In these instances, it isn’t uncommon for the relevant authorities to catch wind of this unlawful effort, and the repercussions can be devastating.

Some of the actions that authorities can take against a business operating in a way that disregards compliance with the law, include:

  • Harsh penalties that can accumulate according to how many compliance failures are present.
  • The removal of any licenses or certifications a business or business owner may hold.
  • A banning from the specific field that business operates in.
  • Criminal charges if the compliance issue in question calls for it.

Ensuring compliance is paramount to giving your business the best possible environment for growth and prosperity. You must understand what employment type is designed for what purpose, as operating outside of the legal designations can be more trouble than it’s worth.

There are a few things you can do to make sure you’re operating within the law, but none of these options can be of any assistance to you if you’re currently experiencing legal troubles that stem from non-compliance. Once an issue arises, it is recommended that you seek out the help of a legal professional to guide you through this sensitive process.

Before you hire a contractor, or seek out the services of a contractor company, it is advised that you understand the laws that govern the workplace in your jurisdiction. The same is also true for the hiring of employees, and deciding what work type best suits your business can be best achieved by contacting a local legal professional with experience in workplace law. Every zone or area may differ with regards to workplace and employment laws than the next, and knowing where you stand is essential in ensuring compliance is also met.

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