Contract & Property Law, Employment Law, Government & Legislation

Independent contractor differences

A very interesting, high level overview, on the differences between employees and independent contractors in various jurisdiction.

What I noted was that in most countries the Courts look at the reality of the relationship between employer and contractor to determine its true nature. ¬†That’s exactly what New Zealand has fixed in statute with the Employment Relations Act. However, some countries have also adopted the (very)¬†pragmatic view that sometimes a clear distinction between employee and contractor does not work anymore. In those countries, contractors who are dependent on
the employer and do most of their work for them (+75%) are still contractors, but enjoy additional protection. For instance, Canada (“dependent contractors”), gives them the right to additional notice; Spain grants them extra leave per year.

Also noteworthy is Israel’s approach to already agree on possible damages when entering into the agreement in case a Court later finds the contractor to be an employee. That is really smart and fitting for such a business savvy country.