My home country also regulates this scenario - one-man companies with ~single client - for businesses strongly. This is hidden employment. How would it be beneficial to anyone?
- the subcontractor doesn't get any social security. Has to provide everything for himself from the private sector. And pensions (however meager). Theoretically he's free to have multiple clients or vary prices but I guess for most this is a pipe dream and they are dependent. For some tax dodging he gives up the whole legal safety net of being employed. Based on your contract you are freely exchangeable.
- the contracting company has more freedoms with getting/tossing employees, although loses a safety net of subcontractor suddenly leaving or changing prices.
- the government loses oversight of actual corporate structures.
Instead of fixing the flaws in the social system, hidden employment just throws it in the bin because haha less taxes, more money and freedom.
- the subcontractor doesn't get any social security. Has to provide everything for himself from the private sector. And pensions (however meager). Theoretically he's free to have multiple clients or vary prices but I guess for most this is a pipe dream and they are dependent. For some tax dodging he gives up the whole legal safety net of being employed. Based on your contract you are freely exchangeable.
- the contracting company has more freedoms with getting/tossing employees, although loses a safety net of subcontractor suddenly leaving or changing prices.
- the government loses oversight of actual corporate structures.
Instead of fixing the flaws in the social system, hidden employment just throws it in the bin because haha less taxes, more money and freedom.