Do’s & Don’ts | This month: Requalification Risks !
Published on : 03/04/2017
It can be tempting to enter into consultancy agreements with independent contractors.
But beware ! The advantages- lower costs, greater flexibility, less redtape - come with a hidden risk. Despite whatever the written agreement says, a services agreement may be requalified by a judge as an employment contract, and the whole arrangement is subject to French labour law…retroactively. This can lead to a heavy dose of financial, administrative, and even criminal consequences !
To avoid this, here are some key do’s and don’ts to bear in mind :
- Do : Mention in the contract that they are entirely independent
- Don’t : control the consultant’s hours
- Do: Leave them freedom in how to present their work
- Don’t give the consultant business cards with your company’s name
Our lawyers are happy to advise you in the drafting of your services agreements, hiring processes, and the execuction of your contracts in order to avoid falling prey to requalification.
- Do let them use their own material
- Don’t discipline the consultant for errors