Glossary · Hiring and outsourcing models

Independent contractor

An independent contractor is a self-employed person who sells services to your business under a contract rather than as an employee. Contractors control how they do the work, handle their own taxes, and usually serve several clients. Misclassifying someone who works like an employee as a contractor can create legal and tax risk.

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What it means in practice

Many businesses start offshore hiring by contracting individuals directly through job boards or marketplaces. It is flexible, but you carry the recruiting, the vetting, and the risk of a no-show or a quiet exit, and you have no one to call when it goes wrong.

The rules on classification differ by country, so take advice if a contractor works set hours, uses your equipment, and works only for you. Those are signs of an employment relationship.

With Rekruuto, you get a dedicated full-time professional without running the recruiting yourself, and every hire is backed by a 1-week trial with a replacement or refund.

  • Freelance marketplace

    A freelance marketplace is a website where businesses post work and hire independent freelancers, usually per project or per hour, with the platform handling payments and taking a fee.

  • Employer of record (EOR)

    An employer of record (EOR) is a company that legally employs a worker on another business's behalf.

  • Direct hire

    A direct hire is a person your company employs itself, on its own payroll, from the first day.

  • Dedicated remote hire

    A dedicated remote hire is one professional who works only for your business, full time, from another location.

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