It is important because, although it has more freedom, a person who is a contractor is not protected by labor laws. That is, you do not have the right to be paid social insurance, medical plan, sick days, vacations or maternity. It is also important to know that a homeowner or company cannot demand from the contractor the same responsibilities that would be required of a regular employee. If you do, you may be required to pay then the same benefits that people who work in that company receive on a regular basis.
It is also essential because the liability for damages that are caused at work is different when you are a contractor and when you are an employee.
Characteristics Of An Independent Contractor
A company or local owner may be treating an independent contractor as a regular employee when it affects these things.
Know that it is NOT ENOUGH that the contract says that the person is an independent contractor or consultant. You can tell it and still be treating her as an employee.
- The Degree Of Control: This is the main thing, although the courts see all the elements of the case. It is assumed that the independent contractor determines how, when and where he will do the work. It’s independent. Many times, it suffices to prove that a local owner or company is exercising an essential degree of control to say that they are treating the person as an employee.
- Ability To Negotiate: an independent contractor is free to negotiate the terms of his contract.
- A Form Of Payment: the employee is paid by the hour. The independent contractor is paid when he completes his work.
- Discretion: an independent contractor has the option to carry out its work. That is, you can choose the best way to achieve it. This is different from an employee, to whom the boss can tell you what steps to follow to complete the job.
- Own Business: an independent contractor who does not do the work, cannot invoice. This is the risk of loss. An employee will receive his pay even if he does not finish the job.
- Other things that can be seen is how essential is the independent contractor for the company and if it can fire/hire employees.
What If They Treat Me As An Employee?
Well, if so, you may have the right to claim other labor rights such as vacations, unjustified dismissal, illness, maternity and more. See our work rights section here. Also, continue reading to find information about free legal services to which you may be eligible.