Independent Contractor Classification
Daniel Binns avatar
Written by Daniel Binns
Updated over a week ago

What is an Independent Contractor?

An independent contractor is a worker who provides services to a company under a contract, but is not considered an employee. Independent contractors are typically self-employed and operate their own businesses, and they have more control over how they perform their work compared to employees.

Why is it important to correctly classify workers as employees or Independent Contractors?

The Classification Assessment determines the appropriate classification status for a booking through YunoJuno, ensuring compliance with local labour laws and regulations and mitigating the risk of misclassification and potential legal consequences and fines. Misclassification of Independent Contractors can have significant legal, financial, and operational implications.

What are the risks of misclassifying workers as Independent Contractors?

Misclassification of workers can result in violations of labour laws, leading to penalties, fines, back taxes, and legal liabilities. It can also result in legal disputes, labour audits, and damage to a company's reputation. Additionally, misclassification may deprive workers of employment-related benefits and protections, and lead to potential legal claims or disputes with workers.

How does YunoJuno mitigate the risks of misclassification?

YunoJuno is built on solid compliance foundations and we have partnered with reputable global legal advisors and employment specialists to develop our classification service.

What should I do if I am unsure if the role is suitable for an Independent Contractor?

If you are unsure about the classification of a role then you should submit the classification assessment so that the YunoJuno can determine the classification.

What should I do if I know the role is not suitable for an Independent Contractor?

If you know a role is not suitable for an Independent Contractor then you can engage the freelancer as an employee through our Employer of Record (EOR) service where available.

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