What do I need to run a contractor setup compliantly in a particular country?
Understand Legal Definitions: Familiarise yourself with how the country's labor laws define employees and independent contractors. Each country may have specific criteria that determine worker classification.
Contractual Agreements: Create legally sound contracts that clearly outline the terms of the engagement between your company and the contractors. Ensure that the contracts accurately reflect the nature of the working relationship and the obligations of both parties.
Tax Compliance: Understand the tax implications for both your company and the contractors. Ensure that you comply with tax laws related to withholding taxes and reporting requirements. Contractors may be responsible for paying their own taxes, so provide them with necessary tax forms and information.
Benefits and Protections: Be aware of any benefits or protections that workers are entitled to under local labor laws, such as minimum wage, overtime pay, paid leave, and workers’ compensation. Contractors typically do not receive these benefits, but misclassification could lead to legal issues.
Preserve Contractor’s Autonomy: Ensure that you do not exert excessive control over the contractors' work, as this could be seen as evidence of an employer-employee relationship rather than a contractor-client relationship. Contractors should have autonomy in how they perform their work.
Documentation and Records: Maintain accurate records of contracts, payments, and work performed by contractors. Good record-keeping can help demonstrate compliance with labor laws and defend against misclassification claims.
Stay Updated: Labor laws and regulations may change over time, so stay informed about any updates or revisions that could affect your contractor setup. Regularly review your practices and make adjustments as necessary to maintain compliance.
How can Omnipresent help you stay compliant?
We help you stay compliant with the following offerings:
Misclassification risk assessment: Assess your contractors to understand the risk factors and make an informed decision
Compliant contract templates: Our in-house legal experts have prepared global and country-specific compliant contract templates for your use
KYC checks and document management: We adhere to strict AML and financial requirements for peace of mind and keep all your documents in one place in case of audits