Question

what steps can you take to try to assure that the workers are considered independent contractors?

Answer 1

There are multiple factors which should be evaluated to define independent contractor, the most crucial being the the degree of control it has in the relationship with the person.

Few more aspects are as follows -

1. Statutory framework -

Independent contractors should not be covered by company's regular employment contract and statutory labour laws pertaining to regular employment.

2. On-boarding -

Independent Contractor should be appointed based on the contract signing with defined work scope, legal section, prcurement section and terms and conditions. This should be different from the usual regualr employee onboarding.

3. Compensation -

Compensation is paid to independent contractors based on completion of the work agreed, and as per the stages of completion as agreed in the contract, unlike an usual employee who should be paid agreed reumneration irrespective of work stage.

4. Control -

In the case of independent worker, method of work is not controlled by the company, contractor is free to design the methodolgy as per the work scope agreement in the legitime ways.