3 Story Software (3SS) is a trusted partner in the contingent and extended workforce management space, with over 144 companies using our software worldwide. With a global reach and an unwavering commitment to understanding the complex compliance requirements of Managed Service Provider (MSPs), we specialize in supporting organizations that hire contingent labor across diverse legislative environments.

Our highly configurable platform empowers businesses to navigate rapidly changing legislative landscapes with ease, ensuring seamless operations and compliance adherence. As a result, our clients benefit from a comprehensive solution that can adapt to their unique needs and serve them effectively on an ever-changing global scale.

Our MSP clients represent an extensive multinational presence, with operations in up to 34 countries in any given year. Herein you will find a selection of legislative laws that our software has intricately woven into its functionality, precisely tailored to meet the unique compliance needs of our clients globally.

Agency Workers Regulations (AWR) - United Kingdom

In effect since October 1st, 2011, the implementation of the Agency Workers Regulations (AWR) has significantly impacted the contingent labor and procurement industries. The AWR legislation aims to safeguard the rights of temporary workers engaged through agencies or umbrella companies, while those operating through their own limited companies remain unaffected.

Under the purview of AWR, once a temporary worker has fulfilled 12 weeks in the same job role, they become entitled to equivalent working conditions as permanent employees holding similar positions within the organization. This momentous shift ensures that temporary workers gain access to a myriad of employee benefits offered by their employers. Consequently, following the completion of the 12-week threshold, these temporary workers must be granted pay on par with that of their permanent counterparts, harmonizing their terms and conditions of employment.

Inland Revenue (IR) 35 – United Kingdom

The IR35 legislation, also known as the United Kingdom's anti-avoidance tax legislation, comprises Chapter 8 of the Income Tax (Earnings and Pensions) Act 2003. Its primary purpose is to address the issue of 'disguised' employment and ensure that workers who operate through their own limited companies (often independent contractors), or intermediaries, are appropriately taxed, as if they were employees.

'Disguised employees' are individuals who, if paid directly by the client, would be considered employees of that client. Consequently, under Chapter 8, the responsibility lies with the worker and their limited company to determine their IR35 status and fulfill the necessary National Insurance and Income Tax obligations to HMRC.

To streamline compliance and enforcement, a significant update was introduced on April 6th, 2017. This revision made public sector organizations responsible for assessing whether individuals providing services on a contract basis within their organization fell under the IR35 rules. If applicable, the organization became responsible for paying the required National Insurance and Income Tax.

Through the reforms, repeals and reinstatement of the IR35 legislation, 3SS’ flexible development process has ensured clients in the UK stay in compliance.

Labor Code – Germany

In Germany, the principle of equal treatment forms a cornerstone of Germany's labor code, promoting fairness and non-discrimination in the workplace. Additionally, the state is obligated to actively support the effective realization of gender equality, fostering an inclusive and equitable work environment.

Germany's labor law draws upon various sources, including federal legislation, collective agreements, work agreements, and case law. Unlike a single consolidated labor code, the law is comprised of separate acts addressing specific labor-related matters. These acts establish minimum labor standards and are supplemented by governmental ordinances that provide further details and regulations.

Employee Leasing Act (Arbeitnehmerüberlassungsgesetz) – Germany

In Germany's contingent labor and procurement industries, service contracts cover temporary employee assignments through either employee leasing or contracts for specific work. Employee leasing has stricter regulations, while contracts for work offer more flexibility with less worker protection. One key aspect of the Employee Leasing Act is to ensure that temporary workers are fairly compensated for comparable work performed by the company's employees. Their pay must be regularly reviewed and increased as their assignment progresses, just as it would for full-time employees.

The updated labor code sets a maximum 18-month duration for temporary assignments. Hirers must offer a contract for work after 18 months, facilitating transition to permanent employment. If not, the temporary worker must leave. The same position can be filled with different workers, rotating every 18 months with a 3-month minimum interruption. Subcontractors are protected by industry-specific minimum wages higher than the national standard, with potential fines up to €500,000 for non-compliance.

These regulations uphold fair treatment and labor standards for temporary workers. VMS functionality that helps German based clients meet these requirements is essential for the German market.

GDPR – EU

The General Data Protection Regulation (GDPR) is a European Union (EU) law implemented on May 25th, 2018, to govern the utilization, processing, and storage of personal data, which refers to information about a living individual that can be identified.

One crucial aspect of GDPR is its extended jurisdiction, encompassing any organization processing personal data of individuals located within the EU. This implies that both large and small organizations, regardless of their geographical location, must comply with GDPR regulations.

Consent holds a central focus under GDPR, necessitating clear, specific, and unambiguous consent from individuals for the processing of their personal data. This emphasis ensures transparency and empowers individuals to have control over their data.

The right to access is another vital provision of GDPR. Data subjects possess the right to request access to their personal information held by an organization, and the organization is obligated to fulfill these subject access requests promptly. In addition to access rights, GDPR introduced the right to be forgotten. Data subjects can request the erasure of their personal information by data controllers, ensuring their data is securely deleted.

3SS built a consent process into the application and has process for individuals to request deletion of their personal data.

Furthermore, GDPR requires data controllers to appoint a Data Protection Officer (DPO) within their team. The DPO is responsible for overseeing data protection activities, ensuring compliance with data protection regulations, and serving as a point of contact for data subjects and supervisory authorities.

For the contingent labor and procurement industries, GDPR has significant implications. This necessitates implementing robust data protection measures, obtaining proper consent, facilitating subject access requests, honoring the right to be forgotten, and appointing a DPO to ensure compliance and safeguard individuals' data rights.

Modern Awards – Australia

The Fair Work Commission (FWC) in Australia has established a vital component of the employment landscape known as Modern Awards in 2010 (“Awards”). These 122 distinct Awards, play a crucial role in setting and regulating the minimum terms and conditions of employment for specific employee categories across various industries. Virtually all businesses in Australia employ individuals who fall under the coverage of these Awards. Functioning akin to legislation, Modern Awards carry significant weight and can only be deviated from under very limited circumstances, ensuring a robust framework for employee protection and fair working conditions.

Modern Awards serve as legally binding documents that delineate the minimum pay rates and employment conditions applicable to a broad range of industries and occupations. With over 100 industry or occupation Awards in existence, they encompass the majority of the Australian workforce.

The application of Awards varies based on the industry in which employers operate and the type of job performed by employees. Each Award contains explicit information regarding the specific groups of employees it covers, ensuring clarity and consistency in terms of entitlements and rights within the contingent labor and procurement industries.

To be in compliance with Modern Awards, a company: 1) must comply with the minimum pay rates and entitlements specified in the relevant Award for each employee category. This includes minimum wage rates, overtime pay, penalty rates, allowances, and other entitlements as applicable; and 2) must maintain accurate and up-to-date records of employee working hours, wages, and entitlements.

California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act (CCPA) is a comprehensive data privacy law in the state of California, United States. It became effective on January 1, 2020. The CCPA is a data privacy law in California that grants residents control over their personal information. These regulations offer comprehensive guidelines for businesses operating within the contingent labor and procurement industries, outlining how to effectively communicate workers' rights under the CCPA.

They also provide clear instructions on handling worker requests, including the necessary processes to verify the identity of those making such requests. Moreover, the regulations address specific considerations and requirements when dealing with requests from minors, ensuring their privacy rights are protected appropriately.

For the labor and staffing industries, it means implementing strong data protection measures, providing access and deletion options, obtaining explicit consent, and non-discrimination policies. Businesses must update privacy policies and have agreements with vendors to comply with CCPA requirements and avoid penalties.

Experience the flexibility of 3SS and streamline your contingent labor management with a solution designed to grow with you and your compliance needs. Join our extensive multinational clientele and gain peace of mind in managing your workforce across diverse legislative environments.