3. How to Structure an Independent Contractor Relationship
A. How to Properly Document the Relationship
The relationship between an independent contractor and a company shall be executed by a written contract. Nevertheless, as a result of the application of the principle that substance prevails over form, the actual terms and conditions under which the services are rendered must be considered in each particular case, regardless of the documents signed.
B. Day-to-Day Management of the Relationship
Please find below some suggestions for day-to-day management:
- Services should be provided by the independent contractor on a non-exclusive basis.
- Independent contractor should have offices of his/her own and other clients.
- Company should avoid giving instructions to the independent contractor regarding how to perform the services.
- Company should avoid supervising the independent contractor.
- Company should avoid supplying the independent contractor with tools and equipment (computer, wardrobe, mobile phone, corporate email, corporate cards, etc.).
- Company should avoid making fixed payments to the independent contractor.
- Independent contractor shall not have fixed working hours/days.
- Independent contractor should not have the company´s corporate email address.
- Independent contractor should be able to assign work to others and should not always be performed by the same person.
- Independent contractor should be able to reject some of the work requested by the company.