Shared Work , or shared work , is the division of control and supervision of employee activity between two or more business entities. Collective work can occur with design, such as when a company involves a Professional Employers Organization (PEO) to handle payroll administration and benefits while maintaining the overall direction of employee work. If the employee of his client can not handle this administration, the PEO will not sign a contract of employment with them. PEO will only be a joint company with the client's employer when the PEO has direct control over the client's staff. They can decide if they want to be a joint company with a client company depending on all the facts based on different situations. Outsourcing some HR responsibilities allows for benefits that are ultimately better, because Employee Leasing Companies can collect their clients. Joint work may also arise inadvertently with misclassifying employees as independent contractors.
Currently, there is no single definition of common employment. In contrast, various employment laws determine the situation in which joint employment can occur with regard to the law.
An example is the Family and Medical Leave Act in the United States. This law defines collective work in determining which business entities have legal responsibility to provide equal employment for an employee returning from a family or medical leave.
Video Joint employment (US Law)
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Under the Fair Labor Standards Act of 1938, two or more employers may employ an employee simultaneously, since the Law does not prevent employees from having more than one working relationship at the same time. If all the facts show that the two companies do not act independently, but the employee is hired together, all work performed by employees during the agreed period is considered as one job for the purposes of the Act. Therefore, both employers are responsible, individually and collectively, to comply with all provisions of the Act (such as overtime) in relation to all work for a particular work day. In carrying out mutual obligations, each employer may, of course, take credit for the minimum wage and overtime requirements for all payments made to employees by the company or other joint employers.
Maps Joint employment (US Law)
Determination of shared work
There are several key points to determine whether shared work exists:
- Do two different practices using the same staff member
- whether each practice is associated with other practices
- The extent to which an employer has the right to control or exercise control over the employer's work
It can also look at employment contracts: if it clearly states that they have more than one employer, it is more likely to be a joint employment contract. However, if the employment contract is only with one particular employer, even if the contract states that the employee is required to work for another practice, it is not a joint occupation. Moreover, if the exercise controls employees, even if they do not formally employ them, they may still be working together. The more control of both employers, no matter direct or indirect, the greater the probability that the courts will generally claim employees are working together, they will see the totality of circumstances to determine whether two entities will be considered a joint company. On behalf of not causing any legal process, the entrepreneurs, should establish their responsibilities clearly in the agreement to avoid future uncertainty and the contract language is very important. In fact, it is possible for several different businesses to become a joint company of one employee. The larger the number of joint firms, the more difficult it is for entrepreneurs to overcome some of the practical issues like setting up employees and assuming their responsibilities. However, since the issue is legally complicated, both employers and employees should seek advice from experienced advice parties.
Employees employed jointly by two employers must be counted by both employers, whether maintained or not in one of the employer's salaries, in determining employer coverage and employee appropriateness. For example, an employer who together employs 20 employees from a temporary placement agency and 60 permanent workers are protected by FMLA. Employees working for a secondary company in a given period are considered to be employed by a secondary company, and must be calculated for coverage and eligibility, as long as the employer has reasonable expectations that the employee will return to work with the employer.
In a co-employment situation, only the main employer has the responsibility to provide necessary notices to employees such as granting FMLA permits, health benefits, welfare, and employment recovery. Secondary employers are responsible for receiving returning employees from FMLA leave for replacement employees if the secondary company continues to use employees from the temporary placement agency, and the agency chooses to place employees with a secondary company. Secondary employers are also responsible for complying with the provisions of prohibited actions related to employees employed jointly, whether the secondary company is protected by FMLA. There are several factors that determine who the main employer such as the authority to hire, assign different tasks to the staff, provide employee welfare and make a payroll.
Benefits and disadvantages of shared work
Benefits
Joint ventures may find it easier to hire experts in some niche industries, people with special skills, or even replace their regular workforce. Due to the fact that shared work is more flexible for employees to work with different practices over a period of time, they can decide which jobs should be prioritized. For example, there are different deadlines for different projects, in joint work situations, employees can adjust the pace of work for different projects, so that work can be completed before the deadline, and build good relationships with other practices. In addition, some employees may also prefer to work full-time under a joint employment contract rather than part-time for different practices, so employers can more easily recruit new employees to address staff shortages. Furthermore, joint entrepreneurs share control over employees like work schedules. Some employers can also reduce labor costs and employee benefits with combined employment contracts because the payroll costs are shared between employers.
Weakness
Unemployment may increase as labor demand diminishes due to joint work; some practices may want to cut payroll costs by choosing a combined employment contract. One potential risk is there may be confusion about an employee's arrangement between two entrepreneurs, making it difficult to overcome this practical problem. In some circumstances, if two companies have totally different terms and conditions such as work schedules and sick payments, employees may disagree with them. It is also questionable who employees will complain about when they are treated unfairly. When there is a dispute, though only with one of the bosses, the job tribunal claims against both employers, so it is unfair to other employers. It is important to make an agreement between two practices to avoid disputes and misunderstandings in the future. Shared entrepreneurs should also define their responsibilities as well as manage processes and make decisions in disciplined situations. Moreover, it is unpredictable what will happen when one entrepreneur decides to terminate a joint employment relationship for various reasons as he no longer provides the same service, or he wants to sell his business, what will be the new arrangement? Will other bosses change employees to a normal contract or will they take full responsibility for that employee? It depends on the circumstances. For many medium to large companies, understanding the role of a joint venture is crucial. Many large companies such as Walmart, DHL, have been sued for unpaid overtime payments to the joint venture. Employers who do not fully understand the status of joint employers are at high risk of breaking the law such as overtime pay.
References
Source of the article : Wikipedia
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