This client is an international inflight entertainment company. They are a world leader in inflight entertainment and connectivity (IFEC) and the industry’s most awarded inflight entertainment systems.
The Situation
The company was making payments to contractors in Central and South America as freelance or independent contractors with no compliance vetting and validation through the internal accounts payable department. They had limited or no knowledge on employment standards and laws in the region and had no Central or South American offices to rely on for management of these workers and compliance assurance.
This company had the requirement to engage local technology talent to service air fleet, with airport access and screening rights. They required a global contractor management partner with locations in Central and South America for employed contractor vetting, management and monthly payments based on local country laws to transition 20+ self-sourced contractors to employed contractor status in Central and South America.
CXC's Solution
CXC implemented an employed contractor solution in five counties and smoothly facilitated the transition of inflight entertainment talent, providing thought leadership on how best to employee a contractor talent base and provide on-going legislative updates on changing laws and employment requirements.
Key services we have provided to Inflight entertainment include:
- Vetting to ensure workers are properly classified as employed contractors with right to work in each country and proper tax registrations
- Onboarding in each of the five countries with an emphasis on IP and confidentiality
- A single invoice for all services
- Employed compliant management and payroll to contractors on a monthly basis
- Centralized invoicing in USD$ for accounting simplification
- Paying all contractors in local currency for five countries
- Managing complex paid time off, 13th month payments and termination policies in each country
- Background investigations and security clearances required for airport access
- Should audit occur from Labor Department in Latin America, processing all responses and audit defense.
The Results
The partnership with CXC enables this inflight entertainment airline client in Central and South America with ongoing compliant solutions and cost effectiveness. Our provision of a positive contractor experience, responsive service, and complete compliance creates and promotes contractor loyalty and productivity.
The contract has been renewed twice since inception.
