a. How to Properly Document the Relationship
There are no required guidelines for documenting a contractor arrangement. The service agreement should clearly mention that the relationship is not an employment relationship, and the contents of the agreement should not resemble the features that are typical for an employment relationship. Terms such as ‘salary’, ‘working time’, ‘overtime’, ‘vacation’, should be avoided.
b. Day-to-Day Management of the Relationship
The limited case law concerning the issue of re-classification does not create a rich source of tips to reduce the risks when it comes to day-to-day management of the relationship with independent contractors. We think, however, that the following could help reduce the risks of re-classification to an absolute minimum:
• the work instructions should not be too detailed, as the contrary could indicate subordination. It is recommended to keep the work guidance general, e.g. what the final product should look like;
• employers should avoid fixed monthly payments as the method of remuneration. Alternatively, employers can pay the contractor upon the completed work, or per hours he actually worked and documented in a timesheet;
• the working hours should be as flexible as possible. Preferably, the start and the end of a working day should not be defined; and
• employer should avoid, to the extent possible, contractors performing work in the employer’s premises, and/or using the employer’s equipment and/or email account.