Why do companies hire employees?
I'm trying to understand what the appeal is for companies to hire staff on payroll rather than just demand that their employees register as sole traders or their own LLCs and then invoice the company for their time on a contract basis.
It seems to me that this would benefit the company by obtaining the same work while eliminating their obligations to pay employer national insurance contributions or any sort of pension. This saves the company money and also provides them with more contract flexibility.
I'd imagine there are some finer points I am missing. Can anyone on here elaborate? Nobody I know in real life can answer this.
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