What to do if you engage contractors

If you engage contractors, it is essential to get the facts of the relationship right. 

contractorBusiness owners need to take a proactive approach to reviewing arrangements to ensure that the business is not exposed to material liabilities. 

Key factors include:
  • Whether the work involves a particular profession or skill set.
  • The level of control the contractor has over how the contract is executed.
  • The ability of the contractor to delegate work to another person.
  • Whether the contractor supplies his own tools or equipment.
  • Whether the contractor has his own place of business.
  • The contractor's ability to generate goodwill or saleable assets during the course of the contract.
  • How the contractor is paid (for hours worked or a result).
  • The level of risk the contractor bears.
  • Whether the contractor is independent or in reality, simply 'part and parcel' of the organisation they contract to.
  • No single factor is determinative; it is the weight of evidence, on balance, across all of the factors.

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