If it’s time to distinguish between employee vs contractor for your international expansion, there are some things you need to consider before making a final decision. Simply put, international hiring goes beyond the rules and regulations that we’re used to in the US.
The first piece of information to digest is the “at-will” employee is virtually non-existent overseas. Your international employment contracts need to be iron clad because, from our experience, foreign courts will side with the employee leaving you responsible for pricey, backdated benefits. This rule, as you can think of it, crosses the line into contractor work, which gets increasingly complicated in foreign markets.
You may think it’s best for your firm to hire consultants, freelancers, agents, or temporary workers to expand globally, but you need to be very careful when entering an agreement with contractors in international markets. We’ll get into the details of these difficult arrangements below.
Distinguishing the Difference Between Employee vs Contractor
The first question to answer is: Do you need an independent contractor or does it make more sense to hire an employee? The primary difference between the two types of workers is autonomy. An employee plays by your rules and schedule while an independent contract has freedoms.
Five questions cover the general distinctions classifying your worker as an independent contractor and not an employee. If you can answer yes to the following questions, this team member should be safely classified as a contractor: