With the rising gig economy that offers workers more flexibility in the days and hours they want to work and greater flexibility for businesses to hire workers on a self-employed basis it can be a win-win situation for all. This video details how contracting can be a great alternative to hiring an employee and outlines the benefits to individuals who want to use contracting to enhance their work/life balance. |
Using contractors cans ave time and money but there is the risks that it could be a bogus self-employment where the worker is hired as an independent contractor but the actuality of the working relationship employer and employee. It is essential that the contractor is genuinely self-employed and that the business is not trying to use it to avoid revenue or employment law obligations.
How, then, can a business satisfy themselves that the worker they hired is self-employed? The Code of Practice for Determining Employment or Self-Employment Status of Individuals is an excellent starting point. It has a checklist that allows businesses to determine if the worker qualifies as an employee or an independent contractor. If you are hiring a contractor and want to get it right then download the Code of Practice below.