Must legal employers be entered in HCM applications for all worker assignments?

Legal employers must be entered in HCM applications for all worker assignments because this is essential for compliance with local labor laws and regulations. A legal employer represents the entity that has legal responsibility for the employment relationship. By specifying a legal employer for every worker assignment, organizations ensure that they are adhering to regulations concerning taxation, benefits, labor rights, and general employment practices.

This requirement is crucial for proper reporting and management of employee-related data, facilitating the enforcement of legal obligations based on the jurisdiction where the worker is assigned. It simplifies processes related to payroll, compliance audits, and can help avoid potential legal issues that might arise from misclassification of workers or failure to comply with local laws. Therefore, having a legal employer assigned for each worker assignment helps maintain the integrity and reliability of the HR data within the system.