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Mixed regulatory outlook for global contingent landscape

The overall regulatory outlook for the staffing industry for the next six-month period is negative in 13 countries, according to the World Employment Confederation’s “Staffing Executive Regulatory Outlook [1]” report.

The Outlook is a bi-annual poll of top executives of national staffing federations around the world, who assess the likelihood and potential impact of regulatory changes.

Respondents cited assignment length limits in Sweden and statutory sick pay in Ireland as areas negatively affecting the use of contingent labor in certain countries. Meanwhile, respondents expressed optimism in countries such as Italy, where a new government may change recent reforms that shortened maximum assignment lengths, among other rules.

Negative impacts. As of September 2021, agency work is no longer allowed in Mexico. Agency work can nevertheless continue operating in the so called “specialized services,” which are outside the core activity of the user company.

Meanwhile, respondents expected regulatory changes in European countries to have a negative effect on the use of contingent labor, such as:

Positive impacts. Meanwhile, in four of the 24 surveyed countries, respondents anticipate regulatory changes that will have an overall strong and positive impact on the sector:

The WEC also noted that in seven countries, the impact of changes in regulation is expected to be neutral overall.

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