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Contracts With Independent Contractors

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in Compensation and Benefits,Employee Benefits Program,Human Resources

Your contract with an independent contractor establishes payment rates and methods, the nature of the work to be completed, the deadline for completing the job and performance standards.

No matter how casual the relationship or how well you know the contractor, you should always have a signed contract describing the work to be done. Here's why:

  • It helps establish that your intent was to hire the individual as a contractor, not an employee. The contract won’t prove a bona fide contractor relationship existed, but the lack of a contract makes it extremely difficult to prove such a relationship existed.
  • It offers you protection should the contractor’s work be unacceptable in some way. If a disgruntled contractor sues you and there’s nothing in writing, it’s up to the court to decide whether the terms of the contract were met.
  • Most reliable contractors will insist on a contract. After all, the contract repre...(register to read more)

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