Crab Insight September 2020

Red Tape Busters Volume 7, Issue 12, Reassurance

Welcome to the September edition of Crab Insight

Our focus this month is on outsourcing. The business practice of engaging an external party to perform services or create goods that traditionally were done in-house by the company’s own employees. 

For example, a business may take the decision to outsource bookkeeping duties or the functions of human resource departments, such as payroll or recruitment, or health and safety activities as doing so may be more cost-effective than retaining an in-house specialist for each area or for a business owner trying to become an expert in each.

When used properly, outsourcing is an effective strategy to reduce expenses, and can even provide a business with a competitive advantage over rivals.

Whatever your outsourcing strategy you need to make sure that the company carrying out the work you require will not present additional risks to your business.

Claudia Crab’s September Focus

Claudia the Crimson Crab icon

To make sure you do everything possible not to get let down by someone else, do your diligence before selecting an outsourcing partner.

Robert Briggs – Compliance Director Crimson Crab

Outsourcing can be used to reduce labour costs, together with the cost of overheads, equipment, and technology.

Skill and knowledge gaps can be filled using third party experts.

Outsourcing may also be used to focus on the core aspects of the business, trusting the less critical operations to outside organisations.

On the downside, communication with the outside provider can be hard, and security threats can escalate when multiple parties access sensitive and personal data.


Top tip – A great starting point to find out where you are, is our Business MOT


F2 Business Huddle Online

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Friday 9 October 2020

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Employment status

An employment tribunal held that an Excel cycle courier was a worker rather than being in business on their own account, therefore succeeding in their claim for a week’s holiday pay.

The case applies the recent Court of Appeal decision in Pimlico Plumbers Ltd v Smith [2017] EWCA Civ 51.

(Boxer v Excel Group Services Ltd ET/3200365/2016)

How can Crimson Crab help?

Professionals' Duty of Care

The High Court been looking at the scope of a professional’s duty of care and has given a judgement which provides useful analysis of case law considering the scope of professionals’ duty of care, and the limited circumstances in which the courts will extend a duty beyond its terms.

(Denning v Greenhalgh Financial Services Ltd [2017] EWHC 143 (QB))