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this post was submitted on 20 Sep 2023
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Nothing. It’s one of the alluring aspects of using third-parties. You pay a flat fee, people do work. You avoid all the overhead of HR, benefits, workers compensation and unemployment insurance. If you want someone gone there’s no process, you simply tell the third party that Joe doesn’t need to come back to work, ever, and you’re done.
Amazon and Google are not alone in this practice, nor is it exclusive to Fortune 500 companies.
Worst case you pay out what is left on the contract, but since you drove costs down it is cheaper than firing a regular worker!