It is very important to classify a person working for you correctly. The main differences between contractor and employee is that employment relationship presents dependency from the employer. Therefore, for concluding a Service agreement with contractor, these 3 things should be :
- A contractor is not obliged to perform the work personally
- A client is not required to pay wages/salaries (regularly)
- The contractor is not in an authority relationship with the client.
Misclassification can lead to serious troubles with Tax authorities, so use our short quiz
to check if it’s your case is not considered to be an employment relationship.