international employment law firm alliance L&E Global

2. How to Structure an Independent Contractor Relationship

a. How to Properly Document the Relationship

It would be prudent to document the independent contractor relationship by way of a written contract. This would enable both parties to delineate the boundaries of their relationship clearly and to set out the terms of the engagement.

It is recommended that the clauses do not indicate an employer-employee relationship by reference to the factors mentioned in Section I above. The parties should expressly state the independent nature of the independent contractor, and not include anything which might indicate a subordinate relationship, such as the independent contractor having to comply with regular working hours, the rules and regulations of the workplace and/or being subject to internal investigations and disciplinary processes.

b. Day-to-Day Management of the Relationship

When managing the relationship with the independent contractor, the party engaging the independent contractor may wish to avoid day-to-day management of the relationship.

While an employer is likely to be concerned about work process, the person who engages an independent contractor will focus on the work product.

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