Baltic tax library

A Contractor Agreement Is Not Decisive

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Contractors

A contractor agreement is not decisive

Calling someone a contractor does not by itself make the relationship independent. Authorities and courts look at the real working relationship: control, dependence, integration, working time, tools, substitution rights, and economic risk.

  • The company controls daily work and schedule.
  • The person works mainly or only for one client.
  • The person is integrated into teams, reporting lines, and internal systems.
  • The company provides tools, email, equipment, and business card identity.
  • The person has little right to substitute another worker.
  • The person carries little entrepreneurial risk or pricing freedom.
Safer contractor pattern Higher-risk pattern
Project deliverables, own tools, multiple clients, pricing freedom. Permanent full-time role, managed like staff, no commercial independence.
Supplier can delegate or substitute where appropriate. Named person must perform under manager control.

Sources: European Labour Authority on bogus self-employment, European Labour Authority self-employment glossary.