Employee/Independent Contractor Classification Concern Crosses Borders

How a worker is classified can have important ramifications for companies in any country. In almost all jurisdictions, a company has more (and more costly) obligations to an employee than to an independent contractor. A determination that a worker was misclassified as an independent contractor generally means that the company will be liable for the payment to the employee of the employment benefits that were not paid, and payment to the government of the unpaid employment taxes, Social Security taxes and the like. In addition, various legal rights and obligations (for example, employment discrimination protections) will flow from the determination that a worker is an employee rather than an independent contractor.