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Understanding Independent Contractors

Independent contractors are self-employed individuals or entities that provide services to clients without being classified as employees. They have control over their operations, are paid per work done, and are responsible for their own resources. An Independent Contractors Agreement outlines the terms of the relationship, including obligations, rights, and payment terms.

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20 views2 pages

Understanding Independent Contractors

Independent contractors are self-employed individuals or entities that provide services to clients without being classified as employees. They have control over their operations, are paid per work done, and are responsible for their own resources. An Independent Contractors Agreement outlines the terms of the relationship, including obligations, rights, and payment terms.

Uploaded by

muibudeenmuiz22020
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Independent Contractors (Freelancers)

An independent contractor is a self-employed person or entity contracted to perform


work for or provide services to another person or entity (client) as a non-employee for a
fee.

IC is different from an agent because he/she does not receive instructions/authority from
the client. He is also not a contract staff because he is not being paid per period of time.
He is responsible for the funds, personnel, machines/materials needed for the job.

The client has the right only to control/direct the result of the work and not what will be
done or how it will be done.

Characteristics of Independent Contractors

 Controls his operations

 Source for funds

 Paid per work done/service rendered

 Source for machines/materials

 Provides services or products

 Has control over time/place to execute the work

 Has substantial investment in the business

 Purports to be in business for himself

Independent Contractors Agreement

A contractual deed that lays out the terms of the Independent Contractors work and
relationship between the Independent Contractors and the client.

Contents of Independent Contractors Deed

 Contractual obligations of both parties


 Scope of the work
 Deadlines for completion of different stages of the work
 Liabilities of both parties
 Duration of work
 Payment terms
 Termination clause
Rights of Independent Contractors

 To enter into a contract


 Control and management
 Receive payment
 Work with other contractors
 Challenge your employment status

Obligations of Independent Contractors

 Meet standards and specification


 Meet deadlines
 Obtain permission for variation
 Allow client access to the work

Contents of an Independent Contractor’s Resume

 Name and contact information


 Professional Summary
 Work experiences with dates
 Skills and Educational status of personnels

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