- 1. Employee vs Independent Contractors
- 2. Risk of Deemed Employment
- 3. General Differences in Tax Treatment
- 4. Differences in Benefit Entitlement
- 5. Implications of Classification of Independent Contractors as Direct Employees
- 6. General Misclassification Risk Mitigation Strategies
- 7. How to Structure an Independent Contractor Relationship
- 8. Business Presence Issues
- 9. Trends and Specific Cases
- Conclusion
India
6. General Misclassification Risk Mitigation Strategies
To substantially avoid the risk of misclassification of its independent contractors as employees, companies should ensure:
- that its independent contractors are not engaged in any perennial activity that is ‘core’ to the business, and is also carried out by its permanent workforce, to the extent possible.
- The nature of ‘control and supervision’ it exercises over its independent contractors should be minimal, to the extent possible.
- That the independent contractors are not subjected to the policies (leave, holidays, work timings and benefits) that are typically applicable to its permanent workforce.
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