A joint venture is a business arrangement where two or more parties agree to work together on a specific project or business activity while maintaining their separate identities. This type of collaboration allows companies to pool resources, share risks, and combine expertise to achieve a common goal. In HR, joint ventures affect recruitment, employee management, and compliance during the active phase of the partnership.
The parties involved in a joint venture agree on roles, responsibilities, and contributions to the project. Employees may be seconded or shared between the companies involved. HR departments must manage contracts, reporting lines, and compliance requirements for staff working within the joint venture.
