Is there anything I need to consider legally? 📄

In this article, you’ll find key information about legal matters, contract types, and other essential aspects for independent contractors. We want you to have all the clarity you need for a successful relationship with your client.

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Employee vs. Independent Contractor

Employee: A traditional employment relationship, regulated by a work contract. It’s characterized by:

• A hierarchical relationship.

• A fixed salary and pre-established work schedule.

• Exclusivity and direct subordination.

Independent Contractor: Provides services to a company under a Services Agreement, governed by civil and commercial laws. It’s characterized by:

• No exclusivity or set schedule.

• Receives fees for services, not a salary.

• Uses their own tools and has autonomy.

• Governed by a statement of services and compensation.

How to avoid misunderstandings or misclassification?

Clarity is key. To avoid problems, it's essential to:

• Evaluate the contractor’s real independence.

• Keep documents that support the relationship.

• Avoid behaviors that show subordination or exclusivity.

• Mutually agree on the independent nature of the relationship.

Key questions about your contract

• What if I don't agree with my contract?

  • We Sign: Contact your point of contact on the Ontop sales team. Our legal team will review and can negotiate adjustments if feasible.

  • You Sign: Communicate directly with the hiring company to negotiate the clauses you don't agree with.

• What laws and jurisdiction apply? All contracts and disputes are governed by the law of the State of Delaware, USA. Disputes will be resolved exclusively in the courts of Miami-Dade County, Florida.

• Should I issue an invoice? Yes. As a contractor, you must issue an invoice for the services you provide, including your name, address, and tax ID number (if applicable). In other countries, you should check with local authorities if you are required to invoice.

• What are the risks of misclassification? If a company misclassifies you, they could face fines, retroactive payments for salaries, overtime, and other benefits. This is why it's crucial to establish the relationship correctly from the start.

Other important obligations

• Review your contract: Make sure you comply with all obligations. Some clauses may remain in effect even after your contract ends.

• Payments: The company must pay you the amounts owed under the contract. If you haven't been paid, it's best to have an open conversation with them.