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Glossary · Contractor

Contractor, defined.

An independent professional who works for a client under a service contract, not an employment contract: they run their own business, decide how they work and invoice for it.

Who employs whom
Your companyThe client
service contract
The contractorAn independent business
invoices for the work
Your companyPays the invoice
At a glance

Independent, by definition.

A service contract
Deliverables, price and dates, not hours and orders.
Invoices
The contractor invoices; there is no payslip.
Several clients
A contractor is free to work for others.
The term

What it means, in practice.

Definition, close terms, and the ways to work with a contractor at FreelanX.

On this page
Related terms: misclassification, contractor of record, milestone.

In one sentence

A contractor sells a service to a client. They are not on the client’s payroll: they set their own methods and schedule, use their own tools, invoice for the work and handle their own taxes and contributions.

Contractor, freelancer, consultant

In practice the words overlap. On FreelanX, “freelancer” is the word used on the marketplace; “contractor” is used for independent professionals a company engages directly, for example with FreelanX Contractors.

Contractor or employee?

The name of the contract does not decide. If the client sets the hours, provides the tools and is the only client, the law may see an employee. The guide Employee or contractor, the tests explains the signals.

Working with a contractor at FreelanX

A mission on FreelanX MarketplaceMilestones and payments handled, 5% per payment
FreelanX Contractors$19 per contractor per month, for contractors you engage directly
Contractor of record$279 per contractor per month: FreelanX EOR engages the contractor and carries the compliance
FAQ · Contractors

Questions people ask first.

Does a contractor get a payslip?
No. A contractor invoices for the work.
Can a contractor become an employee?
Yes. FreelanX EOR can employ them in their country.
Who carries the classification risk?
With a direct engagement, the client. With contractor of record, FreelanX EOR.
Work with contractors, simply.
From $19 a month, or $279 with contractor of record.
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Glossary · Contractor
Contractor, defined.
An independent professional who works for a client under a service contract, not an employment contract: they run their own business, decide how they work and invoice for it.
All terms
Who employs whom
Your companyThe client
service contract
The contractorAn independent business
invoices for the work
Your companyPays the invoice
At a glance
Independent, by definition.
A service contract
Deliverables, price and dates, not hours and orders.
Invoices
The contractor invoices; there is no payslip.
Several clients
A contractor is free to work for others.
The term
What it means, in practice.
Definition, close terms, and the ways to work with a contractor at FreelanX.
In one sentence

A contractor sells a service to a client. They are not on the client’s payroll: they set their own methods and schedule, use their own tools, invoice for the work and handle their own taxes and contributions.

Contractor, freelancer, consultant

In practice the words overlap. On FreelanX, “freelancer” is the word used on the marketplace; “contractor” is used for independent professionals a company engages directly, for example with FreelanX Contractors.

Contractor or employee?

The name of the contract does not decide. If the client sets the hours, provides the tools and is the only client, the law may see an employee. The guide Employee or contractor, the tests explains the signals.

Working with a contractor at FreelanX
A mission on FreelanX MarketplaceMilestones and payments handled, 5% per payment
FreelanX Contractors$19 per contractor per month, for contractors you engage directly
Contractor of record$279 per contractor per month: FreelanX EOR engages the contractor and carries the compliance
FAQ · Contractors
Questions people ask first.
Does a contractor get a payslip?
No. A contractor invoices for the work.
Can a contractor become an employee?
Who carries the classification risk?
All questions
Keep exploring
Related pages.
Work with contractors, simply.
From $19 a month, or $279 with contractor of record.
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