Companies Navigate Opposing Worker Classification Trends

Will the next worker
you secure be considered an employee or a contractor?

Making that classification has legal implications that influence how much they can work,
how long they work for you, and the costs, benefits, and expectations of the worker.

Today’s global landscape is complex, with worker classification rules diverging sharply. Some regions are easing employer requirements, while others are tightening them.

The U.S. lessens the employer burden of defining contractors.

The U.S. Department of Labor announced in May that it will not enforce a rigorous 2024 six-factor determination rule. This leaves employer-friendly classification rules in place, giving them more latitude to retain workers as contractors.

EMEA experiences stringent worker classification requirements.

New Dutch laws limit consecutive contracts, ban zero-hour contracts (for on-call workers), and expand the burden of proof for employers. Germany and France maintain strict worker classification rules for employers. Meanwhile, the EU is implementing stringent rules for platforms that hire gig workers.

APAC employers see nuanced increases in classification demands.

Australia stipulates that conditions and pay of agency hires must be comparable to those of employees. Singapore has imposed rigorous conditions on classifying workers for platform employers, such as Grab and Gojek. China has implemented a strict multifactor definition of gig workers and retroactive penalties for misclassification.

Our View

Consider two perspectives to shape compliance.

Managing risk involves both legal and TA expertise. Internal counsel typically provides the decision-making input on compliance matters. A TA partner with global and local regulatory expertise provides perspective
to balance risk management and workforce impacts.

Data and visibility are essential to risk management.

A fragmented view across vendors, worker types, and hiring functions leads to blind spots. Integrated systems and clear governance bring risks to light before they become liabilities.

Treat regulatory shifts as a constant evolution.

Engage a TA solutions partner that monitors the regulatory environment, raises issues, and adjusts to changes proactively.

Expert Perspective

Learn what companies are doing to put total talent strategies into practice today, drawing from both contingent and permanent hire workers to meet changing talent needs.

Learn More

Amy Bush

President, RPO
KellyOCG + Sevenstep