In today’s highly regulated workforce environment, ensuring compliance with labor laws is a critical priority for organizations managing contingent workers and service providers. Failure to comply with labor regulations can lead to significant legal risks, financial penalties, and reputational damage. SAP Fieldglass, a leading Vendor Management System (VMS), offers powerful tools and capabilities to help organizations ensure labor law compliance throughout the contingent workforce lifecycle.
Labor laws govern a broad range of employment aspects including worker classification, minimum wages, working hours, health and safety, benefits, and tax obligations. For contingent labor and service procurement, compliance is particularly complex due to:
Non-compliance risks include audits, fines, lawsuits, and disruptions in workforce availability. Therefore, embedding compliance into workforce management processes is essential.
SAP Fieldglass is designed to provide end-to-end visibility and control, making it easier for organizations to adhere to labor laws and internal policies. Key features include:
Fieldglass allows organizations to capture detailed worker information, including classification status (employee vs. contractor), visa and work permit details, certifications, and tax forms. Proper documentation ensures:
Fieldglass enables the creation of configurable workflows to enforce compliance checks at various stages such as onboarding, time entry approval, and invoicing. Examples include:
Fieldglass supports multi-tier supplier management, ensuring that all suppliers and subcontractors comply with contractual and legal obligations. Supplier profiles can store compliance records and audit histories, facilitating risk mitigation across the supply chain.
Accurate tracking of working hours is essential to comply with labor laws related to overtime, breaks, and maximum allowable hours. Fieldglass provides:
Comprehensive audit trails document every action and approval within the system, providing evidence during audits or disputes. Fieldglass reporting tools enable organizations to monitor compliance metrics, generate labor law compliance reports, and identify potential risks proactively.
SAP Fieldglass integrates with core HR and legal compliance systems, such as SAP SuccessFactors and SAP S/4HANA, creating a seamless compliance ecosystem. This integration supports consistent policy enforcement and up-to-date legal frameworks.
Ensuring labor law compliance is non-negotiable for organizations managing contingent workforces. SAP Fieldglass provides a comprehensive platform that supports compliance through detailed worker classification, automated workflows, supplier oversight, and robust reporting. By leveraging SAP Fieldglass, organizations can minimize legal risks, ensure fair labor practices, and maintain a compliant and agile workforce in today’s complex labor environment.