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URGENT: Protect Your Platform Business and Navigate the New EU Directive with Ease

Don’t let new regulations disrupt your operations. Safeguard your delivery, courier, and hailing platform from the legal minefield of risks – Get expert guidance now!

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Immediate Action Required: Understanding the EU Directive

The EU Directive on Platform Workers is here, and it’s set to disrupt digital platforms such as delivery, courier, and hailing services, as well as talent marketplaces.

This new regulation aims to reclassify platform workers, granting them employee rights and protections. Ignoring these changes can expose your business to severe legal and financial consequences. 

Surviving the Legal Storm: Adapt to New Employment Rules Safely

The directive introduces a legal presumption of employment, strict regulation of algorithmic management, and enhanced data protection requirements. These changes could mean significant operational upheaval for your platform. Non-compliance isn’t an option; it can result in hefty fines and damage to your reputation. Our team understands the high stakes involved and is equipped to provide the urgent guidance you need to adapt quickly.

Act Now: How CXC Can Protect You

Time is of the essence. CXC offers immediate consultation services to help your platform comply with the new EU Directive. We are experts in compliance and workforce management and we provide customised solutions to address your specific risks and ensure you meet all legal requirements. Don’t wait until it’s too late. Contact us today to secure your free consultation and safeguard your business from impending regulatory threats.

Compliance Success Story: Contractor Classification For a Global Tech Company

This well-know global technology company grappled with the task of precisely categorising over 150 Independent Contractors worldwide to comply with UK legislation, necessitatingaccurate classification within its vast network of directly engaged contract workers.

The collaboration between CXC and the company resulted in the successful implementation and launch of the IR35 module within a 12-week sprint.

The Challenge

This technology company faced a significant challenge concerning its extensive network of contract workers situated around the globe, a majority of whom were directly engaged and identified by the company.

Within the scope of UK legislation, the company urgently needed to accurately classify all Independent Contractors for IR35 compliance. This entailed correctly determining the employment status of over 150 Independent Contractors.

The Solution

To address this challenge, CXC assembled a dedicated team for project delivery and IT development. Their task was to construct and configure a dedicated IR35 classification module tailored for the company’s needs. This module was seamlessly integrated into CXC’s Independent Contractor Classification Platform – CXC Comply.

The collaboration between CXC and the company resulted in the successful implementation and launch of the IR35 module within a 12-week sprint. This endeavour involved close coordination with stakeholders from various departments within the company, including Finance, Legal, Technology, and Operations. In February 2021, the platform went live, with CXC’s Support and Account Team Members equipped with company-approved tools and equipment.

To ensure the successful uptake of the new system, CXC devised a comprehensive plan encompassing communication, training, and escalation procedures for all relevant stakeholders within the company. This was further bolstered by regular training sessions conducted by CXC on their platform, which facilitated a smooth transition for company personnel.

The Outcome

  • CXC’s solution empowered the technology company with a centralised overview of their contract workforce, ensuring accurate classification. This, in turn, mitigated potential risks such as penalties, fines and legal disputes.
  • Starting with 150 workers to classify, the project grew to, and resulted in, the accurate classification of over 250 UK workers for IR35 purposes within the company.
  • Through this collaboration, a strong and productive relationship was cultivated between CXC and the company. This rapport paved the way for the expansion of the program to an additional 18 countries globally, including in the regions of Europe, The Middle East, Africa, Asia, and Latin America. 
  • The success of the program hinged on the precise classification of workers. To facilitate this, CXC worked closely with Google’s Employment Tax Team, to develop bespoke independent contractor classification frameworks for each respective country and region that were in scope of the service. The frameworks included a comprehensive list of questions which had been reviewed, weighted, and signed off by both Google’s Employment Tax Team and Legal Team. To support the classification assessments, CXC also conducted a compliance vetting process, which required the independent contractor to provide evidence of their right to work within the stated country and provide respective company documents to support their stated engagement type. With both processes running simultaneously, client was able to effectively engage independent contractors, whilst mitigating the associated risks. These tests played a crucial role in identifying any instances of misclassified employees.

Minimise the Risk: Download our FREE ultimate guide

With the increasing prevalence and growth of digital labor platforms, it is important for companies to understand and comply with the regulations outlined in the EU Directive to ensure fair treatment of platform workers and avoid potential legal consequences.

Will Your Business Be Disrupted?

The EU Directive on platform workers is set to redefine the gig economy. This new regulation aims to reclassify platform workers, granting them employee rights and protections. For platform operators, this means significant changes are on the horizon. Ignoring these changes can expose your business to severe legal and financial consequences.

See a few examples below:

On-demand delivery app fined for breaching labour law in Spain

In Spain, the on-demand delivery platform Glovo was fined €79 million
for misclassifying workers as self-employed.

Ride-sharing platform (Uber) ordered to pay damages in France

In France, a court ordered ride-sharing platform Uber to pay approximately €17 million in damages and lost salaries to drivers misclassified as self-employed.

Domino's pizza worker misclassification case in Ireland

In Ireland, the Supreme Court is set to hear an appeal over the misclassification of delivery drivers working for Domino’s Pizza between 2010 and 2011.

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Why Is CXC Different?

Our culture of success, customised solutions, compliance expertise, global reach, and trusted partner ecosystem make us uniquely equipped to help you achieve lasting success in managing your workforce.

A culture of client success:
We’re passionate about creating lasting success for our clients and contractors, grounded in a culture that values honesty and integrity. We prioritise long-term client success over short-term gains, offering clear workforce management solutions.
Customised solutions for your business:
Whether you need insource or outsource solutions, we craft the perfect fit for your business needs with the right technology and personalised service. No matter your size or location, we’ve got you covered.
Expert Compliance Management:
Navigating ever-changing regulations and labor laws is easy with CXC. We ensure your company stays compliant and protected from risks, giving you peace of mind with our expert guidance.
Global Presence, Local Expertise:​ With a worldwide reach and deep local knowledge, we create and manage contingent workforce solutions that adapt to your unique needs, no matter where you operate.. ​
Partner Ecosystem:
We partner with leading talent and tech firms, as well as niche specialists globally, to deliver seamless contingent workforce solutions. Our approach is straightforward, friendly, and backed by a proven track record.

Want to Stay Ahead of the Curve?

Dive deeper into this topic and enhance your knowledge—read our guides and stay informed. We’ve got you covered!

EU Platform Workers Directive: A Guide for Digital Platforms

BLOG:

What happens if companies don’t comply with the new EU Directive on platform workers? Non-compliance could lead to hefty fines, back taxes, criminal charges, and reputational damage. Join us as we explore the potential consequences and what labor platforms can expect once the directive is enforced across the EU.

INTERVIEW:

Watch our interview with CXC’s EMEA Managing Director, Connor Heaney, as he explains the EU Directive and its implications for platform workers and the organizations that employ them.

WEBINAR:

Join our exclusive webinar for an in-depth exploration of the EU Directive on Platform Workers. We’ll uncover the intricacies of the directive, examining its strengths, weaknesses, and the fascinating elements that shape the landscape for platform workers across the EU.

Don't Let the New EU Regulations Disrupt Your Operation

Time is of the essence. The sooner you understand and implement these changes, the better protected your business will be. Don’t wait until it’s too late. CXC is here to help you navigate these urgent changes with confidence and precision. Secure your business against potential penalties – Book a FREE consultation now!