The client, an international energy and finance company, is a world leader in energy service, energy finance and insurance, with company offices in more than 25 countries and servicing clients in over 40 countries.
Our client had a global population of employed and self-employed independent and corp. to corp. contractors that were being managed by a USA payroll and compliance company. They were using partners in countries, as they had no international presence. Because of this, the company was experiencing contractor concerns with untimely payroll and inaccurate accrual of paid time off.
Our client also felt they were being charged an increased bill rate with no reporting for employed contractors. Direct payments were being made to contractors as freelance or independent, with no compliance verification through the internal accounts payable department. They had limited or no knowledge on global employment and independent contractor standards, and the laws in the 40+ countries they were using independent contractors.
Our client required a global contractor management partner with online technology, vetting and background screening capabilities, to provide worker classification validation of existing independent, corp. to corp., limited liability companies and sole trader contractors.
CXC provided the client with a USA-based Client Care Program Manager that interfaced with the client to understand the global population of contractors, how they were classified, who was acting as the legal employer of record and to identify risk in self-employed and Statement of Work (SOW) contractor engagements. CXC transitioned global employed contractors to CXC management and payroll, resulting in a 12% decrease in contractor fees. Single invoices by currency eliminated slow onboarding and time to resolve queries. CXC implemented CXC Comply – our contractor management vetting and validation platform – to ensure proper classification of global self-employed contractors and conduct compliant background screenings allowable by local in-country law.
Key services CXC provided to the energy and finance company include:
- Single dedicated USA Client Care Program Manager.
- Global in-country office network in over 30 countries with local team members.
- Contractor employment contracts in English and local country language.
- 100% transparency and full management in countries where partners were required.
- Consolidated invoices by currency.
- Global reporting consolidation.
- Global professional indemnity insurance of $9M USD equivalent.
- Global background checks.
- Provide contractor vetting to ensure worker properly classified as independent contractor, corp. to corp., limited liability company or sole trader.
- Ensure all contractors have right-to-work standards in each country.
- Single invoice for all services in USD.
- Should audit occur from a tax or labor department globally in-country, CXC processes all responses and audit defence.
- Enabled the client to have a centrally managed group of SOW contractors with increased visibly into spend and project milestone to both contingent workforce and procurement departments.
- Local in-country CXC office to validate business set up and ensure local compliance for global SOW contracts.
The partnership with CXC enables the international energy and finance company an increased employed worker experience, reduction in cost to manage the program and ensures full transparency and visibility into their global contingent workforce.
Self-employed misclassification risks are avoided with using CXC Comply, ensuring that all contractors, regardless of classification, are properly classified and fully compliant with the client’s background screening requirements allowed by local in-country laws. CXC provides full workforce indemnification, prepares and holds audit defense files and carries excess liability insurance.