An employee has rights a contractor does not: paid leave, protection against dismissal, social security paid by the employer. When a contractor is found to be an employee, the company can owe back contributions and taxes, penalties and the rights the person should have had. Amounts depend on the country.
The tests most countries use
ControlWho decides how, when and where the work is done?
IntegrationIs the person part of your team, with your tools, email and manager?
Economic dependenceIs your company their only or main client?
PermanenceIs the work open-ended rather than a defined piece of work?
Business riskDoes the person run a business: set prices, use their own tools, bear their own costs?
Signals of an employee
Fixed hours set by you
Your equipment, email and internal tools
A manager who directs the work day to day
One client, for a long time
Paid by the month, whatever is delivered
Signals of a contractor
Defined deliverables and a clear end
Their own tools, methods and schedule
Several clients
Their own rates and invoices
They can turn work down
When it is not clear
If several employee signals apply, change the set-up rather than the label.
Make it a missionDefined deliverables and milestones on FreelanX Marketplace
Contractor of record$279 per contractor per month: FreelanX EOR engages the contractor and carries the compliance
Employ the personThrough FreelanX EOR, from $499 per employee per month billed yearly
Ask for adviceTalk to us, or to your counsel
Contract types at FreelanX
Employees through FreelanX EOR can be full-time or part-time, on open-ended or fixed-term contracts where the country allows it. Contractors are engaged under a contractor agreement, directly with FreelanX Contractors or through contractor of record.
At a glance
Employeeor contractor?
Employee
Contractor
Who directs the work
You
The contractor
Schedule
Set by you
Set by the contractor
Tools
Yours
Their own
Clients
One employer
Several clients
Pay
Salary
Invoices
At FreelanX
FreelanX EOR, from $499
FreelanX Contractors $19 · contractor of record $279
An employee has rights a contractor does not: paid leave, protection against dismissal, social security paid by the employer. When a contractor is found to be an employee, the company can owe back contributions and taxes, penalties and the rights the person should have had. Amounts depend on the country.
The tests most countries use
ControlWho decides how, when and where the work is done?
IntegrationIs the person part of your team, with your tools, email and manager?
Economic dependenceIs your company their only or main client?
PermanenceIs the work open-ended rather than a defined piece of work?
Business riskDoes the person run a business: set prices, use their own tools, bear their own costs?
Signals of an employee
Fixed hours set by you
Your equipment, email and internal tools
A manager who directs the work day to day
One client, for a long time
Paid by the month, whatever is delivered
Signals of a contractor
Defined deliverables and a clear end
Their own tools, methods and schedule
Several clients
Their own rates and invoices
They can turn work down
When it is not clear
If several employee signals apply, change the set-up rather than the label.
Make it a missionDefined deliverables and milestones on FreelanX Marketplace
Contractor of record$279 per contractor per month: FreelanX EOR engages the contractor and carries the compliance
Employ the personThrough FreelanX EOR, from $499 per employee per month billed yearly
Ask for adviceTalk to us, or to your counsel
Contract types at FreelanX
Employees through FreelanX EOR can be full-time or part-time, on open-ended or fixed-term contracts where the country allows it. Contractors are engaged under a contractor agreement, directly with FreelanX Contractors or through contractor of record.
At a glance
Employee or contractor?
Who directs the work
EmployeeYou
ContractorThe contractor
Schedule
EmployeeSet by you
ContractorSet by the contractor
Tools
EmployeeYours
ContractorTheir own
Clients
EmployeeOne employer
ContractorSeveral clients
Pay
EmployeeSalary
ContractorInvoices
At FreelanX
EmployeeFreelanX EOR, from $499
ContractorFreelanX Contractors $19 · contractor of record $279
FAQ · Contract types
Questions people ask first.
Does the contract title decide?
No. Authorities look at how the work is really done.
FreelanX