Subscribe To Our Blog

Recognizing and Avoiding the Perils of the Gig Economy
Insights From Mettl Company Insights

When you’re hiring a traditional workforce, you get them to sign a non-compete agreement in their contract in exchange for reasonable value-addition and consideration of their legitimate interests. With the contingent workforce, the demarcation of contacts is diminished and there are huge risks and consequences associated with the leak of critical data like client lists, trade secrets, proprietary technology, and intellectual rights. There is no legalities, liabilities, and legislation that cover contingent workers or how they plan to use crucial company information, especially when the worker is working with companies of competing interests, certainly without the knowledge of competing parties. How that shapes up and evolve in the wake of GDPR and data regulations is also something that has to be figured out.

Companies need to buckle down the legislation around contingent workers and use of critical company data, bringing on board legal experts to frame their non-disclosure and non-compete contracts for freelancers and gig workers. Otherwise, companies can have a mix-workforce partly consisting of gig workers for tasks that don’t include a lot of crucial client’s and organizational data and proprietary technology information and partly of traditional employees for tasks where such information is involved.

Topics: HR News and Trends

Originally published July 12 2019,updated May 27 2020

Have your own any insights to share?

Are Non-competes a Good Idea for Startups?

Visit The Mettl Blogs

Talent Hub

Make better people decisions.

Tech-Talent Hub

Insights & strategies for recruitment, training and development of your tech team

Assessment Technology

Learn how technology is revolutionizing examinations, certifications and assessments