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Outsourcing Laws

The job industry is a rough place for many people look for jobs and even more so for business owners looking for an employee to match their needs. Often businesses turn to outsourcing work to other companies to help pick up the slack. Many times people ask what is outsourcing and can employees face job loss due to outsourcing and other questions wanting to know if outsourcing is legal. These can range from what is outsourcing, my job is being outsourced, and is outsourcing legal. When a person is faced with situations like these, they can turn to Experts for insights or solutions. Listed below are five for the top Outsourcing questions answered by the Experts.

What is Outsourcing?

Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers.

Is it legal for a outsourcing company to lay off an employee for tardiness

A company or a person in management can end or terminate an employment relationship for any reason that they see fit at any given time. Therefore, an owner can fire a worker for their poor tardiness problems or any customer complaints. Although outsourcing companies do not have to supply employees with employment unless they have a business contract. This may not be fair but it is a status of at-will employment.

Why is there so much outsourcing of manufacturing jobs when the USA has the skilled labor?

The outsourcing is a simple matter of cost. If the work can be done, even 85% as well in some other country that requires significantly less in terms of pay, then it's cheaper to build there, even after shipping. Many times, the people performing the work internally for the client firm are transferred and become employees for the service provider.

Can someone sue his or her employer for outsourcing the individual’s position to another country?

The individual cannot legally sue the company, except if they had a legal agreement of employment, saying that the only way the individual could lose their position is for a specific cause. Other than that, the individual can be fired for any reason at any time. Outsourcing is not illegal and is the sole discretion of the company.

If a party’s company is outsourcing jobs overseas, in order to avoid paying compensation they are systematically given employees bad reviews and eventually firing the employee. Do these employees have any rights?

A company that has chosen to outsource its work load at their own will terminate any employee’s employment at any given time. Most states practice employment at will, so that protects the company from being legally binding to provide employment to an employee regardless of the reason. However, the company cannot discharge an employee based on sex, age, or race.

Business process outsourcing encompasses call center outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing, and claims processing outsourcing. These outsourcing deals involve multi-year contracts that can run into hundreds of millions of dollars. Outsourcing is a very diverse topic and can even be a political debate. Outsourcing brings many questions to the table for many that want answers. Questions are often a broad variety, such as; is outsourcing legal, my job is being outsourced is this legal, and job loss due to outsourcing what can one do to save their job. Experts can be of help with fast and effective answers.
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