# **Misclassification**

### **What is it?**

In services procurement, misclassification occurs when a worker’s role in a services engagement is recorded incorrectly. A common example is when a worker is treated as a contractor despite operating under conditions expected of an employee.

### **Why is it important?**

The implications of misclassification are significant. Getting a worker’s status wrong can expose an organisation to legal challenges, financial penalties and severe reputational damage. Clear governance and a strong process in services procurement is critical to preventing these issues.

### **Watch the video**

### **Misclassification brings risks no business wants to face**

From legal to financial consequences and reputational damage at stake, having clear governance is essential. Feel secure in your services procurement governance.

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