Contractor misclassification is the largest compliance risk in global hiring. VoltPay helps you stay on the right side of classification rules.
The Core Distinction
Section titled “The Core Distinction”A contractor has:
- Autonomy over how, when, and where they work
- Multiple clients (no exclusivity requirement)
- Own tools and equipment
- Defined deliverables (not just “show up and work”)
An employee has:
- Set hours and location requirements
- Works exclusively for one company
- Uses company-provided tools
- Is managed and directed in their work
Jurisdiction-Specific Rules
Section titled “Jurisdiction-Specific Rules”Classification rules vary significantly by country. Key differences:
- EU (Platform Work Directive): Burden of proof is on the company to prove contractor status
- Brazil: Over 300,000 reclassification lawsuits in 2024
- India: Relatively flexible, but GST registration required above thresholds
- UK: IR35 rules apply under intermediaries legislation
How VoltPay Helps
Section titled “How VoltPay Helps”- Generates jurisdiction-appropriate contractor agreements
- Flags relationships that show employment indicators
- Monitors regulatory changes that affect classification
- Provides expert review for borderline situations