subject: 5 Reasons Why You Should Not Hire Independent Contractors [print this page] Independent contractors are individuals who are only working for themselves. They can control the outcome of their work using different factors like trainings, special license, and experience.
As an employer, you will be required to set the outlines of a certain project and the estimated completion date. The independent contractors will then be allowed to find a way on how to accomplish the task and make their work schedule.
Hiring independent contractors has some advantages like staffing flexibility and cheaper workforce, considering that you do not have to treat them as normal employees. This means you can easily just let go of them once the task in done and you are not required to provide them with employee benefits.
However, you may experience more problems when you hire independent contractors due to the complex relationship that will be built between you and them. Here are five reasons why hiring independent contractors is a disadvantage:
1. Less control- Independent contractors can work freely, unlike employees need to comply with the companys polices. Remember, if you meddle too much on their work, they may already be considered as employees. If this is the case, you will have to provide them with workplace compensation insurance and pay payroll taxes.
2. Ownership issues- Independent contractors may be hired to invent new gadgets like laptops or cell phones. They may be seen as the rightful owner of these gadgets, unless they have signed an agreement which will transfer intellectual property rights to the company.
3. Liability for injuries- Workers who were injured while doing their job obligations may receive financial assistance through the workers compensation insurance. They will not file a case against you in exchange for benefits which can be used to pay for their medical bills. On the other hand, independent contractors are not entitled to receive benefits from this insurance. They may sue you in order to be compensated for their injuries.
4. Short duration of employment- Independent contractors are hired to do projects which may be completed for weeks or months. After they have done their work, their ties with you and the company will end.
5. Termination problems- You can only fire an independent contractor if he violated the terms included in the agreement. If you terminated him without valid reasons, he will have the right to file a case against you.
If you have more questions regarding the role of independent contractors, do not hesitate to seek legal help from a Los Angeles employment attorney. He will specify the different advantages and disadvantages of hiring them and tell you if they are suitable for the job that you want to be done.
