Contingent Workforce Risk & Compliance Solutions

CXC will review your existing contingent workforce, compliance status and risk exposure

Are your contingent workers being managed compliantly and what risks are you exposed to?

As the demand for contingent workforces increases, organisations are faced with new challenges and risks that are becoming ever more complex. Political and social pressure, along with the potential loss in tax revenue, has seen government and regulatory bodies taking steps to regulate and protect this area across the globe.

However, implementation of these regulations and policies in this fast-moving sector is often passive but not without constant legislative updates. It’s expected for businesses to be aware of changes that may be applied where their contingent workers are based. While it’s typical for organisations to have HR policies and procedures when engaging with permanent workers, the contingent workforce doesn’t have enough strong policies to protect both the organisation and contingent workers from risks. 

What are the common contingent workforce risks?

As your international business accelerates, you need a reliable partner like CXC to help you manage and guide your growth, especially with your increasing contingent workforce. Having a strong contingent workforce compliance program in place can help prevent your organisation from being exposed to the following risks: 

1. Worker Misclassification

In the UK, misclassification is a serious employment law risk. Companies should remember that it’s not for them to decide whether their employee is an independent contractor or a regular employee. There are financial penalties and legal actions involved if authorities find out that your business does not adhere to contingent workforce compliance. 

Misclassification

2. Security Risk

Data security breaches are becoming more aggressive as digital technology further develops. Did you know that:

  • 93% of company networks now can be breached by cybercriminals
  • 47% of individuals working from home have been victimised by a phishing scam
  • An estimated half a million people’s personal data from video conferencing services, including their usernames and passwords, were stolen and sold during the pandemic. 

3. Intellectual Property

It’s critical for companies to have a program that monitors employee access to databases and documents. You are at risk of exposing and losing your business’s trade secrets, IP, competitive contracts and other data if you don’t have a strong security program in place. 

Why choose CXC?

CXC assists organisations to engage and manage their evolving contingent workforce arrangements. To do this, we implement the right governance framework for your business and your contingent workforce to ensure you and your workers are not exposed to a range of workforce risks, including tax, insurance, immigration and co-employment.

CXC also mitigates evolving regulatory risks. We do this through continually reviewing legislation changes and working with our external tax, law and immigration partners to continually update and implement a compliance and governance framework.

As one of the world’s leading providers of contingent worker management solutions, CXC is well-positioned to optimise all elements of your contingent workforce strategy. With operations in more than 50 countries across five continents and decades of experience, we can assist with every aspect of your program.

HIRE ANYONE ANYWHERE

How we can help

  • CXC, not your company, is responsible for all statutory taxes (including payroll tax and super) and insurance for the contractors we engage.
  • Our model provides clear accountability for all stages of a contractor’s contract through a single provider, aligned to your HR strategy.
  • We are recognised as providing thought leadership expertise in contingent worker risk and compliance, supported by our dedicated team and robust infrastructure.
  • CXC mitigates evolving regulatory risks through continually reviewing our governance framework, effectively futureproofing your program in this complex, ever changing environment.

CXC Risk Diagnostic Tool

Are you interested to learn about your organisation’s risk profile? CXC has developed a risk diagnostic tool to help determine your current contractor risk profile. With a few easy questions, this tool will work out what kind of worker you’ve engaged, and whether you have any associated risks around co-employment, labour hire licensing, payroll tax and more.

WHAT RISKS DOES CXC PROTECT AGAINST?

As an employer of record, we manage our client’s contractors regardless of how they are sourced. We provide full adherence to all contractor regulatory and statutory legislation. Our solution protects companies from reputational and financial exposure related to contract workers.

We have a defined range of regulatory areas that our risk management program covers to ensure our business operates in a compliant manner, in accordance with applicable regulations and laws:

  • Goods and services tax
  • Fringe benefits tax
  • Superannuation
  • Payroll tax
  • Workers’ compensation
  • Health and safety
  • Industrial relations
  • Contractor engagement/agreements
  • Environmental
  • Modern slavery

Aside from complying with tax, legal and immigration services and future legislative obligations, we also futureproof emerging risks such as data security, labour hire licensing and accessorial liability.

WHAT RESOURCES DOES CXC HAVE TO MITIGATE THE RISK?

CXC employs the largest local risk management team that is focused 100% on the contractor workforce (seven full-time resources). Integration of CXC’s solution ensures full compliance to regulatory and legislative requirements.

CXC also employs external in-country legal counsels across all regions to ensure we meet full compliance standards that are in line with local legislation.

HOW DOES CXC KEEP ABREAST WITH OF LEGISLATIVE CHANGE?

We ensure we stay up to date with relevant legislative requirements by:

  • Staying abreast of the most current legal, regulatory and taxation issues affecting our industry. As one of the largest companies in our industry, we constantly monitor the latest legal, regulatory and taxation developments through our seasoned team of HR professionals, in-house legal and compliance team, and in-house tax professionals. We also draw on the expertise and knowledge of our network of external legal counsel, tax specialists and our participation in trade associations and industry think tanks.
  • Developing, communicating and training on strategies to mitigate risk. As our industry continues to evolve and develop, we ensure that our contractual terms and conditions, including employment agreements, policies and procedures are kept up to date and that all of our people are kept informed through our extensive training and development programs.
  • Educating and sharing best practices with our clients. Because of the nature of our services, there are steps that our clients can also take to minimise their legal risks as well as ours. We continually share best practices with our clients on ways to minimise their risks on topics such as co-employment, tenure policies and workplace safety as well as examining any changes to our contractor workforce solution policies, procedures and business rules that are required as a result of legislative and regulatory changes.

Have a question or need help?

If you would like to find out more about how we can help, please contact our friendly contingent workforce experts for a FREE consultation.