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Hiring former employees as contractors - policies?
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Hiring former employees as contractors - policies?
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
I'm looking for any policies, regulations and best practices around hiring former employees as contractors. Should there be a break in service, and for how long?
Thank you for your help!
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Forums » Topic Forums » General Forum » Hiring former employees as contractors - policies?
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Hiring former employees as contractors - policies?
posted at 1/6/2010 8:53 AM EST
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Posts: 42
First: 3/13/2007 Last: 6/8/2010 |
I'm looking for any policies, regulations and best practices around hiring former employees as contractors. Should there be a break in service, and for how long?
Thank you for your help! |
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Hiring former employees as contractors - policies?
posted at 1/6/2010 3:06 PM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
I've done a lot of research on this topic (ee vs contractor) and my overall basic statement is that if the person is doing the same job that they did as an employee OR the same job that other employees are still doing, it will be very hard to justify them as an "independent contractor".
I know that employers see it as a way of currently saving payroll dollars, but even one challenge can be very very costly. And can bring the DOL/IRS into the company's business and give them access to all employee/contract files along with payroll files and accounting systems. We have always worked under the policy that everyone should be an employee unless it is very black and white that they fit the contractor rules (own their own business, have more than one client, set their own hours, work on a specific project for a specific amount of time, etc). What helps a bit with the "arm's length" issue is to hire them as a contractor through another company where they are an employee through that company (such as a consulting firm or staffing firm). But even then you will find not only with the firm's bill include wages, but also benefits and other costs of having them as an employee. |
Forums » Topic Forums » General Forum » Hiring former employees as contractors - policies?
