What is

Independent Contractor


Employees onboard workers for a specific project for a defined period. The work of an Independent Contractor may or may not be controlled by the organization entirely, i.e., s/he will have more freedom regarding the work than permanent employees. Independent Contractors do not qualify for the benefits that employees get and have to work using their own equipment and tools.

Independent contractors, commonly referred to as freelancers or consultants, are individuals who work on a contractual basis for a company. They are typically hired to provide specific services or complete designated projects for a set amount of time. 

Unlike permanent employees, independent contractors have more autonomy, flexibility, and control over how they complete their work. This includes where they work from, what hours they work each day, and what clients they take on.

Benefits of Being an Independent Contractor

  • Flexibility: Independent contractors have the freedom to choose who they work with, what projects they take on, and how long they work each day. The flexibility independent contractors have means they can work on a broad range of projects with many different organizations – growing their portfolio and enhancing their skills. 
  • Remote/Hybrid Work: Independent contractors also have the freedom to work from anywhere. Many independent contractors adopt a “digital nomad” lifestyle and travel the world while they complete projects. 
  • More Money: For independent contractors, the earning potential is limitless. Independent contractors have the freedom to take on as many projects as they want. They can freely negotiate their rates based on their skills, experience, and market demand for their services. What’s more, independent contractors in some countries can get tax write-offs for a lot of their business expenses, such as equipment, technology, office space, and more. 

Benefits of Engaging Independent Contractors

Hiring independent contractors can be a cost-effective way for employers to scale their teams at their own pace, without significant investment in infrastructure, salaries, and benefits. 

Employers have the flexibility to hire contractors whenever they need additional support on various projects or during busier times of the year. Meanwhile, they don’t have to commit long-term and accumulate the associated costs that come with hiring staff. 

What’s more, employers can hire for specific skill sets as contractors often have unique, specialized expertise that can help you accomplish specific project goals. Independent contractors bring fresh perspectives and unique skills to established teams, which can reinvigorate projects and enable innovation. 

Additionally, working with independent contractors helps you grow your external network, building positive relationships with experts relevant to your field. This means that when you do decide to build out your permanent teams or need advice, you have a strong network of individuals you can call on.

Compliance and Risk of Misclassification

It is critical for organizations that engage independent contractors to assure local legal compliance. Misclassifying an employee as an independent contractor can lead to serious legal implications.  

Before signing a contractor agreement, both parties should make sure they fully understand all relevant laws and regulations in the country where the work will be performed.