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Are there any disadvantages to payroll?

On October 8, 2019 by WePayPeople

Payroll is a solution for many employers: less administration, fewer risks and everything well organized in situations that you as an entrepreneur are not waiting for. But some employees think that payroll only has disadvantages for them. Every advantage has its disadvantage, after all. We are happy to explain that those payroll disadvantages are actually misunderstandings.

My employer avoids employer risks due to payroll.

Some employees feel that payroll ensures that the employer can avoid legal and employer obligations. Avoiding is not the correct explanation. The employer leaves it to professionals who have all the knowledge about HR. The employer prefers to focus on the business and leaves HR with HR professionals. Payroll companies employ different professionals with a legal, absenteeism, payroll or backoffice background.

As a payroll employee, I get paid less than my colleagues with a permanent contract.

WePayPeople is a member of the trade association NBBU and the NBBU collective labor agreement for Temporary Employees applies to payroll employees. This NBBU collective agreement stipulates that a payroll employee is rewarded equivalent to the permanent employee of a hiring company. A payroll employee receives an equivalent pay in an equivalent position. There is, however, a difference in pay if the payroll employee has fewer years of experience in the sector, has fewer degrees or has fewer years of service with the company.

My employer can fire me because I work through payroll.

In the Netherlands, payroll employees have the same dismissal protection as employees who are directly employed by the employer. However, as a payroll employee you can be deployed flexibly for longer. After a maximum of 5.5 years you are entitled to an employment contract for an indefinite period. Before that, you work on the basis of flexible employment contracts.

Payroll provides more distance.

As an employee you are “transferred” to a large and unknown payroll company. Who is my employer you wonder? And are you still involved in the daily tasks? Your employer manages your daily work. For more complex matters such as illness, holiday pay, salary payments, pension, the payroll company is your point of contact. At WePayPeople we ensure that you always have a fixed contact person. Payroll can even ensure that the distance between employee and employer becomes smaller. As an employer, you no longer have to waste time on personnel and HR administration. So you have more time for the business side of your company and the people site of it. But of course this differs per employer.

Payroll disadvantages?

As an employee, don’t think about the disadvantages of payroll, but get yourself informed about all the misunderstandings. Do you have more questions because your employer is switching to payroll via WePayPeople?

 

We are happy to help you with all possible questions.