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Contract Employees: Knowing the Ins and Outs

By Oscar McAlister posted 10-21-2020 00:15

  

As a business owner, you do not need to hire a full-time employee for every job that becomes available. Sometimes, projects run in the short-term, and you only need someone to work for a few weeks or months. Alternatively, you might need a specific skillset for a few hours at a time every so often. 

The ideal solution is to hire a contract employee. However, there are several legalities surrounding contract hiring that you should take into consideration:

Getting started

Before you start looking for someone to work for you on a short-term or part-time basis, have a clear picture of what you expect from that person and how much you can afford to pay them. 

This is important information that you need to include in the contract you sign. Many contractors, especially those who operate a business, have their own pre-set agreements that they offer potential employers.

Should this happen, always check the contents carefully, and make necessary amendments. However, it is wise to consult a library of legal documents, including agreements for contract work, on Net Lawman

You can download and edit these documents to suit your unique needs. As an additional service, the company has a team of legal experts who can run through your final draft to ensure that it legally protects you.

The nature of short-term contract employment

While everyone tends to refer to these part-time workers as contract employees, this is a misnomer. People that work for you on a contract basis are not employees. They are independent contractors, freelancers, or consultants. 

Each of these titles has a slightly different meaning in various countries. When deciding on the nature of employment you require for a short-term job, you should understand what type of worker you are seeking.

In any form, these workers work part-time or full-time for your organization, but for a set, limited period. These individuals are, in essence, running their own businesses and offering their services to your company.

Contents of your agreement

Unlike other employees, contractors are not obliged to step in and help with tasks that are not in their job description from time to time. They are bound only by what their contract stipulates. 

Therefore, ensure that you include every task you expect them to perform. List these in detail and add a general clause that stipulates that the contractor might be asked to do other tasks related to the nature of their work not defined in the contract.

Cover other issues such as payment terms and conditions and conditions, the length of employment, and circumstances under which the contract may be terminated before its expiry, and how this would happen. 

Leave nothing out, as this contract must be watertight. Do not rely on gentlemen’s agreements where employment terms are implicit, as this approach can cause many unnecessary legal complications.

Valuable points to ponder when working with contract employees

Your terms for termination of a contract work both ways, so ensure that you keep your end of the deal. Pay on time to avoid delays in work delivery. 

Use an integrated project management platform that allows you to track the contractor’s productivity, hours worked, and tasks completed. Keep the worker updated on developments around the project, including them in any meetings, via video link if necessary, and emails.

Set up tasks so that contractors can work offsite by using the cloud. This allows you to access a wider pool of potential experts from anywhere, instead of letting geography limit your options. Interview potential candidates thoroughly and get references or a portfolio of their work to ensure that they are the right fit for your organization.

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