What is Co-Employment Risk?

Article author
Nneka
  • Updated

Co-Employment Risk is the risk that occurs when an organization is considered as the employer, along with the real employer of a worker, with whom that organization does not have a proper employment relationship, i.e. with whom that organization does not have a proper employment agreement. 

For example, Employer Z is the employer of Employee A, i.e. Employer Z has an employment agreement with Employee A.

Organization Y has no employment relationship with Employee A, i.e. Organization Y does not have an employment agreement with Employee A, but is nevertheless considered as the employer of Employee A, together with Employer Z.

For Remote’s business specifically, co-employment risk means the risk of an employee being considered as an employee of both Remote and the client (on whose behalf Remote is hiring that employee). Hence, the risk lies on the client, because Remote, as real employer of the employee, shall always be rightly considered as the employer.

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