Direct / indirect agreements: Types of contracts that describe the relationship between employers and contingent workers.
Direct and indirect Agreements
These types of contracts outline relations between employers and contingent workers. Understanding these agreements is crucial for effective management of the gig economy and contingent workforce.
What is a direct agreement
A direct agreement means that the worker engages directly with the employer, establishing a straightforward relationship with clearly defined deliverables, timelines, and payment terms. For example, a freelance graphic designer directly contracted by a marketing agency to complete a project falls under this category.
What is an indirect agreement
An indirect agreement often involves third parties, such as staffing agencies or platforms where the work is sourced. In this case, the worker may have a contract with an agency that outsources their services to the employer. This can create layers of complexity; for instance, a temporary worker filling in at a retail store through a staffing agency. The store may not have a direct contract with the worker, complicating responsibilities and rights.
Distinguishing between these agreements can help you navigate legalities and clarify expectations. They are not just about wallets and deliverables but encompass expectations, responsibilities, and legal protections for both parties. Failing to have clear contracts can lead to misunderstandings, which can snowball into disputes and harm your company’s reputation. Therefore, crafting meticulous agreements tailored to your gig workforce is essential for smooth operations.
How we can help
Zelos is a workforce management app designed for effective management of your contingent workforce. It is a perfect internal tool for staffing agencies placing staff under indirect agreements.
If you’re are managing workforce under indirect agreements, sign up for a free account today and see if our app can help you keep track of your contingent talent pool.