An independent contractor is a self-employed person or business that provides services to a client under a commercial contract, not as an employee. They control how the work is done and handle their own tax and insurance.
Contractor-to-employee conversion is moving an independent contractor onto an employment contract, either directly or through an employer of record. It changes their legal status, pay, benefits and protections, and ends the old contractor agreement.
A contingent workforce is the people who work for an organisation without being its permanent employees. It includes contractors, freelancers, consultants, temporary staff and workers supplied by agencies or service providers.
A contractor agreement is the contract under which an independent contractor provides services to a client. It sets scope, payment, intellectual property, confidentiality and how either side can end the arrangement.
Contractor misclassification is treating a worker as an independent contractor when, under the relevant law, the relationship is really employment. It can expose the business to back taxes, unpaid benefits, penalties and claims from the worker.
Contractor or employee status turns on independence: a contractor runs a business selling services, an employee works under your direction in yours. The status decides who pays tax and contributions and which legal protections apply.
Through an employer of record a worker becomes a local employee with benefits; as an independent contractor they run their own business instead. EOR adds control and compliance cover, and contracting is lighter and faster but carries misclassification risk.
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