An independent contractor is an individual or business entity who works for themselves and provides services to clients. Usually, Independent Contractors are freelancers who offer specialized skills.
Independent contractors are different from employees for various reasons. For example, independent contractors work for multiple clients, set their own working hours, and use their own tools and equipment. These terms are set out in an Independent Contractor Agreement.
On the other hand, employees are paid to work for one employer, who sets the employees working hours and provides the employee with any needed equipment to complete the job. These working conditions are set out in an Employment Contract.
It is important to clearly distinguish between employees and independent contractors to avoid worker misclassification. In the next section, we’ll explain how Ireland differentiates the two categories of workers.