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Independent Contractors: Are They Good or Bad for Your Company

By Edited Feb 10, 2014 0 0

For a starting business, hiring an independent contractor is a good idea. It is because contractors are easier to handle than employees. While most employees need introductions and briefings, contractors can already head straight to work. That is due to their extensive experience in performing their work. In fact, they are so good in what they do that they can work for different companies at the same time.

Now if you are an employer or a small business owner and you want to know the benefits and disadvantages of employing an independent contractor, here are some of the things you should consider:

The good side of it:

  • Independent contractors can work with minimal supervision. An independent contractor can save you a lot worries. You do not have to monitor him every time because you know he can do the job well.
  • They bring their own tools and materials for work. This lets you save money on equipment and working spaces.
  • Contractors can accomplish a lot of things for your business. Aside from providing work, a contractor may even train your employees.
  • You are not required to provide benefits to contractors.

The bad side of it:

  • A contractor can work for other companies aside from yours. Because he is a freelancer, he can have other jobs to do aside from the one you offered.
  • A contractor's boss is himself. Some contractors may refuse to listen to your suggestions because they think they know better.
  • Independent contractors can leave the job at any time. If a contractor suddenly leaves his job, your business operation may be impaired.
  • If a contractor gets injured on the job, he might sue you for damages. Because contractors are not covered by workers compensation, he might file a complaint against you to recover his damages.

As you can see, hiring an independent contractor both has benefits and drawbacks. Contractors can really be helpful for your budding business, but the sad thing is that they would not stay for long. Once they leave the company, you would not have any choice but to hire another worker for the job.

On the brighter side, an independent contractor can teach you new and important things for your business which an employee may not know. Just remember to make the contract clear to avoid disputes and conflicts in the future. To get more information about employees and contractors, you can consult a Los Angeles labor attorney.


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