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ARTICLE · 20 DECEMBER 2010

Term Limits for Contingent Workers: Urban Legend or Necessary Fix?

Many companies that use contingent workers maintain policies that limit the duration of those workers' services.

United StatesEmployment and HR

Many companies that use contingent workers maintain policies that limit the duration of those workers' services. Under these policies, when a contingent worker reaches a prescribed time limit, that person's services must be terminated automatically, regardless of the person's job performance, and a replacement worker must be found or assigned by a contingent labor supplier.

While such term limiting policies may be well intended, they are not grounded in well-defined legal rules. As a result, there is little consistency in the policies that staffing clients have imposed. Some companies require replacement of contingent workers after a certain number of hours worked, but the maximum number of hours varies greatly, from just under 1000 to 4160, with many different rules in between. Others link limitations to the calendar, such as with 12-, 24-, or 36-month limits. After contingent workers are removed, additional rules may govern how soon they may return, varying from 31

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