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NAVIGATING LEGISLATION:

Tackling Challenges in EMEA's Staffing Industry

Discover How to Stay Compliant and Succeed in EMEA’s Legally Challenging Staffing Markets

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Staying informed about legislation is crucial

Legislation and regulations can pose significant challenges for staffing companies, making compliance a top priority.

As a trusted partner, we understand the concerns and complexities that businesses face in this region.

Let’s explore the top three concerns about legislation for staffing companies in EMEA, as well as the most legally challenging markets:

Top 3 concerns about legislation for staffing companies in EMEA

Data protection and privacy regulations/AI

With the rise of digital transformation, protecting personal data is a growing concern.

Staffing companies must comply with data protection and privacy regulations, such as the EU’s General Data Protection Regulation (GDPR).

Failure to comply can result in severe penalties and damage to a company’s reputation.

Labor laws and regulations

Each country in the EMEA region has its own labor laws and regulations, which can be complex and challenging to navigate.

Staffing companies must ensure they are compliant with minimum wage laws, working hour restrictions, and other labor-related regulations, to avoid legal repercussions.

Worker classification

Properly classifying workers, whether as employees or independent contractors, is essential to avoid legal action, penalties, and fines.

Legislation surrounding worker classification can vary across EMEA countries, so it’s crucial to understand the specific requirements and ensure compliance.

Navigating Complex Labor Laws in EMEA's Top Staffing Markets

EMEA presents a diverse range of markets, each with its own unique legal challenges for staffing companies.

However, some markets are particularly known for their complexity and strict regulations.

For instance, countries like France, Germany, and Italy have intricate labor laws and regulations that can be challenging to navigate.

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Why companies trust CXC with their compliance needs

One centralised program for all contractors

Decentralised contingent worker programs lead to a lack of visibility over your workforce. Different interpretations of local rules and regulations can make things confusing, and contractors often suffer from inconsistent, disjointed experiences.

With CXC, you can bring your whole contingent workforce together under one program — giving you full visibility and control.

Full confidence in a fast-changing environment

With more and more companies turning to contingent talent, governments around the world are tightening up laws and closing loopholes when it comes to contractor classification. The rules and regulations change frequently, and keeping up with them takes a lot of work.

We continuously review changing legislation so you don’t have to — and adapt our governance framework as needed.

Friendly advice from our expert team

We’ve been in this business for over 30 years. In that time, we’ve expanded our global footprint to five continents, opening up more than 30 offices worldwide.

We’ve also built up a whole lot of knowledge and expertise. And we’re more than willing to share that with you as we advise you on the best ways to minimise risk and remain compliant as your business expands.

The cost of non-compliance

UK government departments received a £120M combined tax bill for non-compliance with IR35

Ministry of Justice and Department of Environment, Food and Rural Affairs, UK
2021

On-demand delivery app fined close to €57 million for falsely classifying 7,800+ drivers as self-employed

Glovo, Spain
2023

Oil and gas company found liable for more than $40 million in back wages and damages after misclassifying workers as independent contractors

Holland Services, USA
2021

$105million tax fraud through a free contractor payroll service, the largest white-collar fraud ever in Australia.

Plutus Payroll, Australia
2017

CXC have shown great leadership in the field of workforce management. They continue to demonstrate a comprehensive understanding of risk management, contingent workforce management trends and legislative change. Their willingness to share this across clients and industry is impressive and I have enjoyed the opportunity to engage with their team on thought leadership for many years.

Charles Cameron
Chief Executive Officer, RCSA

We have been able to better control deals that have been done with line managers, where there was a potential to blur the lines of co-employment – such as paying contractors during holidays. We now have better control and visibility of awards, tenure and rates for our contingent workforce.

Talent Acquisition Lead, large Australian energy organisation

Charles Cameron
Chief Executive Officer, RCSA

International legislation around contingent workers

IR35

A set of tax rules that govern how off-payroll workers are taxed in the UK. Under IR35, employers are responsible for correctly classifying every worker they engage — or they could be fined.

EU Directive on Platform Workers

A set of measures to correctly determine the employment status of platform workers. When workers are misclassified as contractors instead of employees, platform companies can face expensive fines and penalties.

ABS

A piece of legislation that requires companies that hire independent contractors in California to reclassify them as employees. Similar laws have been enacted in states including Massachusetts and New Jersey.

DBA

A law in the Netherlands that requires workers and employers to jointly determine their legal working relationship. Previously, responsibility (and consequences for getting it wrong) fell on the worker alone.

Fair Work Act 2009

Guidelines in Australia that govern how the employment relationship of contractors should be structured. Noncompliance is enforced through the Fair Work Ombudsman and can include heavy fines.

Need a Trusted Partner?

We understand the importance of compliance and the impact it has on your business operations. Our comprehensive solutions are designed to assist staffing companies in navigating the complexities of EMEA legislation.

Trust us to provide reliable solutions that give you peace of mind and the tools to thrive.

SUCCESS STORY

Achieving Visibility & Compliance for IMG

Without structure and governed compliance processes in place, IMG were concerned with how the business could mitigate risk and adhere to current legislation.

CXC partnered with the company to provide compliance, contract and payroll management solutions to contractors (often freelancers) who had serviced their business for up to 20 years.

CXC’s MSP solution has delivered enhanced visibility, compliance and governance controls to the company.