Contractor tenure refers to the length of time that a contingent worker can be on an assignment for a single organization. However, in an attempt to lower the risk of co-employment, it’s common for organizations to implement a policy that limits the length of time that a contractor can work on any one assignment. Once the tenure limit has been reached, the contractor can no longer work on the assignment- regardless of the project length.
Contingent workers bring many benefits to an organization’s workforce; however, they also open employers up to a range of financial, legal, tax and branding risks. These Contingent Workforce risks will arise when an organization is flagged for non-compliance and is assessed based on its failure to comply with employment standards.
Without proper classification in place, one of the major risks employers face is co employment, and not even major corporations can escape the penalties if found in non-compliance.
Understanding Contractor Tenure
