Gig work, side hustles present compliance risks to employers
LONDON, ENGLAND — The rise of gig workers and side hustles present employers with significant compliance risks, said global background screening and identity service firm Sterling.
According to Sterling, companies are facing a more complex employment compliance landscape.
Steve Smith, Sterling’s President of International, said that side businesses and gig works could impact the productivity and contracts of employees within a firm.
Smith also disclosed that more employers fall victim to schemes where a single contractor exploits their credentials to win employment but subsequently delegates the execution to a third party.
To mitigate these risks, Sterling said that employers need a robust system to monitor their relationship with freelancers from the hiring stage to project completion.
Before hiring a freelancer or independent contractor, it is also essential to consider the regulations governing temporary workers and assess the working relationship to prevent potential risks and non-compliance issues.
