Selecting a Supplier
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The customer must verify the experience and competence of the supplier's staff involved operationally. An employer may want to restrict recruitment of its employees by the company either for whom or by whom services are being provided, respectively. The area of greatest legal risk in relation to staff which arises in outsourcing concerns the transfer of staff from the customer to the supplier. The responsibility for such employment matters as work permits, legal and other costs, taxation, for the staff carrying out the outsourcing services, must unequivocally be the supplier's as the employer of the staff. The purpose of the Directive, and therefore of the Regulations, is to safeguard employees' rights when a business is transferred to a new employer, or on a change in service provision where activities are outsourced, assigned to a new contractor or returned in-house from provision by an external contractor.