Independent Contractor

An Independent Contractor is a self-employed individual or entity contracted to provide services to a company without being formally employed. Independent contractors operate under specific agreements and control how and when their work is performed, distinguishing them from full-time employees.

For businesses, hiring independent contractors provides flexibility, access to specialized skills, and reduced employment-related expenses such as benefits and tax contributions. Common examples include freelance consultants, developers, marketers, and legal advisors.

Proper classification is crucial. Misclassifying an employee as a contractor can result in legal penalties, so businesses must adhere to regional labor laws and tax regulations, such as those in the UAE’s Free Zones or mainland licensing frameworks.