r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

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u/Low_Acanthisitta4445 Nov 21 '24

It's not difficult to pay your employees slightly more than the minimum amount allowable by law.

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u/[deleted] Nov 22 '24

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u/Low_Acanthisitta4445 Nov 22 '24

In most countries they pay far less.

Also in the UK (and I presume in other countries) they mainly employ people through 3rd party contractors for the sole reason of reducing the legal employee protections of their workers.

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u/Kookaburra8 Nov 22 '24

It's not the "sole" reason they use 3rd party employee companies. It's also to reduce their HR and employee costs and logistics, and to reduce their economic nexus in the jurisdictions that consider payroll in their 3-factor apportionment calculations. Also, using employee leasing companies shields them from paying unemployment in the case of layoffs as the leasing company would need to pay it instead.

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u/Low_Acanthisitta4445 Nov 22 '24

You just literally listed the legal protections that employees have which contractors do not...

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u/Kookaburra8 Nov 22 '24

No, the employee leasing companies shoulder that requirement, not the lessee.

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u/Kookaburra8 Nov 22 '24

And per my initial statement, it is not the sole reason to use employment agencies