Award Statements of Work safely and draw a clean line to Staff Leasing
Pactos helps you tender work and services in a structured way and keep the distinction in view continuously, so that a Statement of Work does not turn into disguised Staff Leasing.
What a Statement of Work hangs on
Companies award work and services with Pactos
This is how Statements of Work are awarded today
With a Statement of Work you are not buying staff but an outcome: a serviced installation, a completed works package, a finished project. The contractor organizes themselves, deploys their own people and carries the risk of delivering the result. In practice, though, such work and services are often commissioned informally: the deliverable is rarely described cleanly and the distinction from Staff Leasing is not documented — both only come to light in an audit.
Services are often commissioned informally
What exactly is owed is not always clearly recorded. Without a clear description of the deliverable, an important basis for a genuine Statement of Work is missing.
Assignments are tracked on the side
Contractor staff, own employees and leased workers are often kept in the same lists. Who gives instructions to whom is hard to reconstruct later.
Problems with the distinction are often recognized late
Whether a person is integrated into the business or receives instructions shows in everyday work. This is often only documented when the customs authority or the pension insurance carries out an inspection.
If the Statement of Work is judged to be disguised Staff Leasing, false self-employment, back payments and secondary liability follow. For minimum wage and social security contributions along the subcontractor chain the client company is jointly liable in any case — including for breaches it knew nothing about. If the customs authority audits, in the end only one thing counts: whether it can be proven that the monitoring obligations were met.
In Vendor Intelligence, the contract type is linked directly to the assignment
Run your external workforce in one system and the distinction needs no separate administration. Whether it is a Statement of Work or Staff Leasing is recorded on the assignment itself, together with records and deadlines. If a valid record is missing, the assignment cannot be approved in the first place.
Even without a VMS: Compliance Intelligence obtains records directly
You grant the authorization once. Pactos then obtains the records directly from health insurances, professional associations and the Federal Employment Agency. This creates one shared process for client and provider instead of the same request being made twice.
An extract from Compliance Intelligence
This page describes the contract type. The products behind it — Tender Intelligence for the tender, Compliance Intelligence for the distinction — are set out in full on their own product pages.
See Compliance Intelligence liveFrequently asked questions
What is a Statement of Work?
How does a Statement of Work differ from Staff Leasing?
What is disguised Staff Leasing?
What risks does the client company carry?
How does Pactos support Statements of Work?
Want to know more?
In a joint call, we show you how to tender Statements of Work in a structured way and draw a clean line, based on your own assignments.
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