If a company hires a freelancer on a recurring basis, it must take precautions to ensure that it is not considered to be an employment relationship.
Self-employed persons are natural persons who habitually, personally, directly, on their own account and outside the sphere of management and organisation of another person, carry out an economic or professional activity for profit, whether or not they employ employees.
On the other hand, an employment relationship exists when it is carried out for the account of others, both with regard to the fruits or results and the risks. In short, the results do not belong to the employee, but to the employer, and the cost or remuneration of the work carried out by the employee is not borne by the employee, but by the employer.
In case of doubt, this is considered to be evidence of employment:
The existence of control or supervision by the employer when carrying out the work.
The fact that the material means and the structure for providing services are provided to the worker by the employer.
The existence of permanent and constant production.
The receipt by the worker of a fixed salary.
The provision of services on a full-time or exclusive basis.
If any of these circumstances are present, the courts may consider the relationship to be an employment relationship, irrespective of the contract that has been signed. This can lead to sanctions by the Labour Inspectorate or the regularisation of company and employee contributions with a 20% surcharge.
The self-employed must have their own business structure and have the material and human resources necessary for the contracted service, have “full freedom”, be paid only for the work carried out and be clearly differentiated from the workers on the staff.
Our professionals will advise you on the differences between the employment relationship and the self-employed relationship of the self-employed.