During the latest NEXTconomy- VMSA meet up, onsite with Jannssen, we discussed the ever-changing nature of the gig economy and the rise of direct sourcing, as well as compliance and risk issues relating to engaging independent contractors/freelancers.
Participants discussed the so-called, notion of “the extended enterprise’ and integrated talent acquisition. One of the key points established was that, instead of choosing whether companies should outsource integrated talent acquisition or keep it in-house, there should be a single system that could support all types of talent – directly linked to freelance talent pools.
However, the converging compliance and regulatory landscape in Europe creates an additional burden to organizations that are self-sourcing workers in Germany, UK, Netherlands, and Ireland.
For example, the Balanced Labour Act in the Netherlands is creating many cost and compliance pressures for both end-users of talent and the intermediaries payrolling the directly sourced talent. Additionally, there are proposed changes to the DBA to be implemented in 2021. Moreover, the risk of incorrectly assessing workers in the UK, under the new IR35 legislation, will fall on the end-user/client creating significant costs, risk and transformational challenges for those organizations. Ireland is facing similar issues as the new legislation has recently been introduced regarding disguised self-employment. Finally, well known for its stern legislation, Germany is also reviewing case law regards disguised self-employment.
Towards the end of the session, participants agreed on eight ways work can be done across various talent types and identified potential challenges in the way organizations define worker types internally and externally.
To read more about the meetup, click here.