Two Companies sharing HR

HMac

Hi,

This is my first entry into the forum. I have some questions I am hoping to get answers to:

Has anyone worked in HR that was shared by two companies (ie. Company B is going to pay Company A monthly for the services of Company A's HR department to conduct HR/Safety responsibilities for Company . These responsibilities would include hiring, creating a wage structure, developing policies, payroll, training, safety, workers' compensation, etc.

If someone has, what is the liability to Company A in the event an accident happened at Company B, or if an ex employee sued Company B, etc?

If someone is familiar with two companies sharing HR, can you tell me how the agreement/contract was set up?

Thank you

Heather

ACU Frank

Are these companies related in any other 'legal' way? (Subsidiary relationship, etc.)

HMac

Hi,

This will be no other relationship. Company B will be moving in next to Company A, paying Company A for product and paying Company A for HR and a few laborer positions.

Thank you for your reply.

Heather

joannie

I can't speak specifically about the sharing HR issue, but I just read an article that might give you some indication of liability.

Company A hired a broker (Company who hired an Independent Contractor(Company C) to perform services. Company C was involved in a fatality accident. The family of the fatality victim sued Company C, Company B & Company A. Jury awarded multi-million dollar damages to victim's family and held all three companies equally liable.

I would certainly think twice about involving my company in anything that would have potential liability I'm thinking discrimination suits, wrong termination, negligent hiring, etc.

Just my two cents,

joannie

ACU Frank

HMac - Are you Company A or Company B? And what is your role?

HMac

Hi Frank,

I am the Corporate HR Manager for Company A and if we agreed to this, would be responsible for the HR of Company B.

Heather

ACU Frank

Run. Run away as fast as you can.

HMac

Thank you for the laugh