Much attention is focused on organisations that provide personnel. However, employers also play an important role. Under the WTTA, organisations may only collaborate with authorised labour providers. This brings new responsibilities and risks.
For many organisations, the WTTA initially appears to be an employment law topic. Yet, as implementation draws closer, it becomes clear that procurement, HR, finance and senior management will also have a role to play. The act not only changes the obligations of labour providers, but also those of organisations hiring personnel. Many organisations have yet to realise that the WTTA imposes obligations not just on providers, but also on employers. An employer hiring personnel from a non-authorised party may face enforcement actions and substantial fines.
Why employers are affected
Under the WTTA, a framework is created in which organisations may hire personnel only through authorised parties. This means that employers must actively check which suppliers they work with. For many organisations, this is new territory. Even in larger companies where several departments independently purchase external capacity, a central overview is often lacking. This creates the risk of insufficient insight into which parties provide personnel and whether these parties have the required authorisation.
More than a legal obligation
The WTTA affects multiple business processes. Organisations must consider aspects such as:
- supplier management;
- contract management;
- control measures and internal controls;
- responsibilities within the organisation.
As a result, the WTTA shifts from a legal issue to one of governance and compliance.
Where are the main risks?
Many organisations have worked with the same suppliers for years. This can easily lead to the assumption that these parties will automatically meet future requirements. Whether that is indeed the case, however, still needs to be verified. Complex supply chains further increase the risk. Especially when personnel are subcontracted, uncertainty may arise about responsibilities within the chain. An employer might think they are dealing with a single supplier, while the worker in question actually comes from another party further down the chain. This creates the risk of insufficient visibility into which parties are truly involved in the provision of personnel.
Now is the time to review your processes
Organisations that aim to be compliant should already seek insight into:
- which parties supply personnel;
- which contract types are used;
- who is responsible for checks;
- which control measures are applied;
- how supplier information is recorded.
The sooner these processes are mapped out, the easier any necessary adjustments can be made.
Is your organisation ready for the WTTA?
For many organisations, the WTTA serves as an opportunity to critically review their supplier and hiring processes. Our specialists can assist in identifying risks and designing an appropriate approach.
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