Ending an employee’s employment is also far harder than terminating an independent contractor. The LRA ensures that certain procedures, including disciplinary hearings, are followed before an employee can be dismissed. Independent contractors on the other hand are often simply issued a notice of termination.

Can you poach clients?

The law recognises that employers can restrain departing employees from poaching clients after their employment has ended, but only if the contract goes no further than reasonably necessary to protect “legitimate business interests” (that is, confidential information, client connections and workforce stability).

What does it mean to poach clients?

The lawyers at two competing firms are constantly trying to steal each other’s clients. Accountants are tame by comparison. Once an accounting client comes on board, he or she typically stays forever, assuming that person doesn’t get upset. Poaching clients follows the same model.

What happens when contractors contact your own clients?

Known as “poaching,” having contractors contact your own clients is a risk every business takes when bringing on contractors. Poaching can happen either while the worker is on contract with you or afterward. Either way, though, you can lose the ability to do business with that client.

What to do when your contractor is taking too long?

Many homeowners become frustrated when they feel that their contractor is taking way too long to complete a project. If your contractor is dragging his feet, follow these tips: It’s best for homeowners to communicate with contractors in writing so there is a record of the conversation.

What happens when you hire a contractor to work for your business?

When you hire a contractor to work for your business, you take a certain amount of risk. Even if you take measures to protect sensitive information, your top freelancers will likely learn the names and nature of business of your clients. What stops one of those contractors from directly offering one of those clients to do the work for cheaper?

Can a company get into trouble for categorizing employees as contractors?

Companies can get into trouble with tax agencies for incorrectly categorizing employees as contractors. Including language in your contract that says you’re an independent contractor and will be paying your own taxes will help them avoid any potential issues come tax time.