Not Just for HR Experts: "B2B or Not to Be" – 3 Tricks and Tips in Contracts with Entrepreneurs
May 13, 2024
[ Article ]
B2B contracts (from English: business to business – agreements between a company and a person running a business – author's note) are increasingly becoming a common way of "providing work." Why are they so popular?
There are many reasons: from lower employment costs to the lack of job protection. Despite their growing popularity, there is also the risk of the existing relationship, known as "self-employment," being reclassified as an employment contract. This would lead to numerous problems for the company, including:
- The employer having to pay all overdue social and health insurance contributions
- Paying for overtime (if it was worked during employment)
- Granting all overdue leave or paying leave compensation in case of employment termination
- Being forced to continue employing individuals under special protection (e.g., pregnant women, people approaching retirement age)
The negative consequences associated with the so-called reclassification of the contract can be minimized through well-constructed agreements. Are you responsible for preparing B2B contracts? Don't forget these three basic elements when drafting them:
- Use appropriate terminology – Avoid terms typical of an employment relationship.
- Horizontal communication – Avoid expressions suggesting the subordination of the service provider to the person commissioning the services.
- Informal method of service delivery – Steer clear of provisions specifying a fixed place and time for performing the services.
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