Contractor Management
Global HR tools
Avoid employee misclassification risk
Governments are tightening regulations on employment misclassification, and enforcing financial penalties that pose a significant risk to your business. It is important to understand these risks to proactively ensure your business maintains a strong legal reputation in all of the countries where you employ workers.
Use our free employment misclassification tool to check whether you’ve assigned your workers the right status.
What's your employee misclassification risk?
Use our free employee misclassification risk calculator to find out your risk level – and what you can do to fix it. No personal or financial information is required, and this information won’t be shared.
1
What is the duration of the contractor’s engagement with your company?
2
Can the contractor choose their own work hours?
3
Does the contractor have full autonomy over how they accomplish a task?
4
Are you applying the same pay rate (for similar services) to contractors as you do to your employees?
5
Do you provide the contractor with benefits (such as health insurance, paid time off or remuneration for professional liability or other insurances)?
6
Does the contractor have access to the company’s internal systems in the same way as employees?
7
Does the company provide equipment to the contractor for their work?
8
Is the contractor allowed to delegate their work to subcontractors or their own employees without obtaining prior approval?
9
Does the contractor supervise employees or other independent contractors? For example, reviewing their work or managing their performance.
10
Does the contractor work with other companies as a contractor in addition to your company?
11
If the contractor receives feedback on their performance, are they treated the same way as your employees? For example, put on a performance improvement plan?
12
Does the contractor attend employee-only company events?
13
Does the contractor manage their own professional liability and other personal insurances?
Misclassification risk calculator
Low Risk
Based on the answers you provided, you’re at low risk of misclassification. Have you considered converting contractors to full-time employees? Remote can help.
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Misclassification risk calculator
Med risk
You may be incorrectly classifying contractors against the local laws in certain countries, leaving you open to fines, penalties, and legal issues. Have you considered converting contractors to full-time employees? Remote can help.
Misclassification risk calculator
High risk
You may be incorrectly classifying contractors against the local laws in certain countries, leaving you open to fines, penalties, and legal issues. Have you considered converting contractors to full-time employees? Remote can help.
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Frequently Asked Questions
The content on this page is not intended to serve as legal or professional advice, and it should not be construed as such. We recommend seeking legal or professional advice before making any business decisions or relying on the information presented here. We reserve the right to modify, update, or discontinue the information on this page without prior notice. It is your responsibility to check for updates and changes to ensure you have the most current and accurate information.