Due to tax and other legislative compliance, we are restricted in where we can employ or engage people to work. We have legal entities in the following countries, where we are able to employ people: the UK, USA, Germany, Romania, Spain, Australia and the Netherlands. See the Hiring page for more information.

In rare exceptional cases we may consider to engage contingent workers. Engaging Contractors will require Management Board sign-off.

This guide is here to explain what contingent workers are, why we manage their engagement so carefully, and what you need to know if you're considering working with them.

What are Contingent Workers?

  • Contingent Worker: A broad, umbrella term for any non-employee individual or business entity engaged on a contractual basis to provide services. This category includes Contractors, Consultants, and Agency Workers. Key characteristics are that they are independent businesses, responsible for their own taxes and insurance, and are not integrated into the company's formal management structure or entitled to employee benefits.

When do I contact the People team with a Contingent Worker requests?

Please firstly read this guidance and the Global Contingent Workers Policy.

  • Contractors - If any of the below apply:

    • You are considering using a contingent worker to fill or cover a role in your team, even if on a temporary basis

    • The contingent worker is not linked to a specific budgeted project

    • A contingent worker will work exclusively for Digital Science

    • You are considering engaging a current or former employee of Digital Science as a contingent worker

  • Raise the request with your functional lead/ budget-holder with full details of the requirements.

  • If they support the request, raise a ticket which will initiate a risk-assessment to confirm whether it is OK to proceed or not.

  • The People team will facilitate the review at the Management Board for final approval. The function lead will be expected to present their case.

  • Do not make any commitment or offer until all approvals have been obtained.

Other types of Contingent Workers:

  • Consultants: Independent experts or professionals under a contract to provide strategic advice, analysis, and professional recommendations or to perform specific, defined tasks or deliver a tangible, measurable outcomes.

  • Agency Worker: An individual employed by a third-party staffing agency who is assigned to work temporarily for a client company. While they perform tasks for your business, the agency remains their legal employer, handling payroll, taxes, and employment contracts.  

  • Vendor Staff: An employee of an external company (the "vendor" or "supplier") that your business has engaged to provide a fully managed service or deliver a specific, outcome-based project. These individuals work for the vendor to fulfil its contractual obligations to your company and are not part of your workforce.  

To engage any of the above, please visit the Procurement Hub for information on the process.

What are the risks in engaging Contingent Workers?

If workers are engaged through an agency or 3rd party vendor, the risk is low as an employment relationship exists between that business and the worker. There is some consideration of co-employment responsibility with agency workers to be aware of.

However, when we work with contractors and consultants, Digital Science has to be very mindful of the potential risks. Failure to do so can result in significant financial penalties and tax liabilities as well as reputational damage. Two of the main risk are:

Permanent Establishment (PE)

  • What it is: This results when Digital Science could be seen as having a "fictitious taxable presence" in a country where we don't have a legal entity. This might happen if a contingent worker's activities or workspace in that country are seen as creating a PE. If that happens, it means Digital Science then has corporate tax liability and reporting obligations in that country.

  • Why it matters: Even one person working in a country can trigger PE. Things like a contingent worker regularly using a home office that's "at the disposal" of DS (for example, if we reimburse them for it) or if their activities are considered an "essential and significant part of the enterprise's overall business operations" (rather than just "preparatory or auxiliary") can lead to PE. Activities that are central to how we generate revenue or manage the business are generally not considered preparatory or auxiliary.

  • Impact: Accidentally creating a PE can lead to significant, unexpected tax burdens and compliance issues for Digital Science.

Deemed Employment

  • What it is: This happens when a worker, even though they're formally classified and paid as a contractor, is legally reclassified as an employee by local tax authorities. This is because of the nature of their working relationship with Digital Science.

  • Why it matters: If a contractor is "deemed an employee," Digital Science becomes responsible for employer payroll tax and social security obligations retrospectively, which can be very costly. Longer contractual engagements significantly increase this risk. To help reduce this risk, independent contractors ideally shouldn't work exclusively for Digital Science and should have other clients.

Contingent Worker dos and donts

  • A contingent worker cannot fill a role that we previously held by an employee or is intended to be a permanent position.

  • The work performed cannot be ongoing and must be a discrete, time-bound project.

  • Digital Science cannot dictate when or where the work is performed.

  • They will not be give a job title nor appear in organisational charts.

  • They cannot manage any employees.

  • They will not be involved in any performance review process.

  • Digital Science should not dictate the worker’s specific hours, work location, or the detailed methods they must use to complete the work.

  • It would be expected that the contingent worker can send a substitute to perform the services in their place.

  • Contracts should be typically governed by the deliverables of the statement of work rather than for a specific time period. Where time-bound, extensions will not be possible without an exceptional business cases which will require Management Board approval.

If you cannot satisfy the above the you should seek to employee someone for the position through the hiring process. See the Hiring page for more information.

Can’t find what you are looking for? Contact us via People Team Support ticket.