Independent Contractor
A self-employed individual who provides services under a contract, without being classified as an employee of the engaging company.
An independent contractor is a person or business that provides services to another entity under a contract, while remaining legally self-employed. Unlike employees, independent contractors control how they perform their work, can work for multiple clients, are responsible for their own taxes, and are not entitled to employee benefits such as health insurance, pension, or paid leave.
The classification of a worker as an independent contractor vs employee is determined by a set of legal tests that vary by jurisdiction. These tests typically look at factors such as control (who determines how the work is done), financial risk (who bears the risk if the work goes wrong), and integration (how embedded the worker is in the company's operations).
Misclassification — treating a worker as a contractor when they legally qualify as an employee — exposes companies to significant legal and financial risk. Global hiring platforms like Remote, Deel, and Papaya Global help companies engage international workers compliantly, whether as contractors or through local employer-of-record arrangements.