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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.

Ask an Employment Lawyer

Tina
Tina, Lawyer
Category: General
Satisfied Customers: 8091
Experience:  JD, BBA, recognized by ABA for excellence.
4460311
Type Your Employment Law Question Here...
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7 Employment Lawyers are Online Now

How JustAnswer Works:

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    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Employment Lawyers are online & ready to help you now

Tina
Lawyer
Satisfied Customers: 7759
JD, BBA, recognized by ABA for excellence.
Marsha411JD
Lawyer
Satisfied Customers: 10539
Licensed Attorney with 27 yrs. exp in Employment Law
Infolawyer
Lawyer
Satisfied Customers: 9785
Licensed attorney helping employers and employees.

Recent Outsourcing Questions

  • Hi. I am a small business owner in Texas. I have 5 employees.

    Hi. I am a small business owner in Texas. I have 5 employees. Each employee has an employment contract/non-compete agreement that they sign which says my company does not pay overtime. I have an employee that is an administrative manager. My business is a photography studio and her title is Studio Manger. She has supervisory and management responsibilities over 3 other employees. She is paid hourly at a rate of $18/hr.
    She has hinted to me that, according to the law she is entitled to overtime pay for weeks in which she has worked over 40 hours and she has said that she can go back as far as 2 years if she wants to press the issue with me. This makes me nervous so I want to find out for sure if Texas law entitles her to overtime pay (time + 1/2) for hours over 40 in any given past week.
    Does the non-compete agreement that says no overtime will be paid have any bearing on the law?
    Is she eligible for overtime?
    Thanks
    MArk M
  • I was forced to retire upon reaching 65. There had been NO

    I was forced to retire upon reaching 65. There had been NO mandatory retirement, (until Jan. 2014). They changed the rules. Another employee who was already 67 was not ask to leave until Aug. 1st. My question is this. If my employer was serious, why would they wait almost 7 additional months to force him out? I ask for an extension of 15 months (which would still have kept me under 67). I did NOT even get a reply. I was forced to retire THREE (3) days after I reached 65. Do the two of us have a case? Please feel free to call me at ***-***-****. Also there have NEVER been any issues for work related issues or any health issues, in the fourteen (14) years I have been there. The other party had been there for over TWENTY-FOUR (24) years. Thank you for your time and consideration, concerning this matter!!!!!!! Nicholas Grand
  • My former employer contacted a potential new employer unsolicited,

    My former employer contacted a potential new employer unsolicited, who I did unpaid consulting for, for their new start-up and shared disparaging things about me. Is this illegal? I am assuming this is not illegal, but what are my options in responding to these false claims?
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