While using subcontractors for your company, there are many advantages as well as complicated factors that can be involved within construction industry schemes. A situation in which your company may occur financial risk could result in effecting your entire business.
Your company has the risk of inspection, which can lead to penalties and fines. Although you may have contracts in place, which may not be the required standard of being satisfactory or if you have failed to understand legislation that is constantly changing, your subcontractors could be considered as employees.
The labour market is characterised by the prevalence of short-term contracts as opposed to permanent jobs. This risen situation needs to be dealt by subcontractors often when they are backed up by their union. Your company can be taken to employment tribunal to claim holiday pay or unfair dismissal.