Why is Co-Employment Risk inherent to Remote’s business?

Article author
Nneka
  • Updated

Co-Employment Risk exists in any working relationship where an employee is performing their work for another organization other than their real employer. The more that employee has a lookalike employment relationship with that same organization, the more the co-employment risk increases for that organization.

Accordingly, co-employment risk is inherent to Remote’s business (and any other employer of record), because an employee is legally employed by Remote, but fully assigned to a specific client, which has no employment relationship with the the employee. As a result, the client is always exposed to a co-employment risk, which is inherent to the services we provide.

However, at Remote, we'll always try to limit this risk as much as we can, together with local counsel and by using country specific documents that align with the applicable local requirements. At the same time, the client is engaged with the employee on a daily basis directly. Such a relationship can always give rise to liabilities that Remote cannot control and should not be responsible for.

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