The engagement landscape: labour supply solutions and risks

The 2021 changes to the IR35 legislation – soon to be reversed in April 2023! – along with continuing economic instability and uncertainty has led many companies to seek alternative engagement models, instead of dealing directly with freelancers and employees. There is a greater wish for flexibility from employees on how and where they work, which brings employment and tax law complications from working abroad.  Businesses may also be looking to expand into new territories where they don’t have a presence.  These are some of the reasons why it might be attractive to use a third party to employ your staff. 

Employment businesses, umbrellas and employers of record are all potential solutions - but they need careful thought, as the supply of labour is governed by a strict regulatory regime with potentially hefty liabilities for getting things wrong. We will decode the terminology, explain the legal framework, and consider what you need in your commercial agreement to ensure that your solution to one issue does not create another.