Key differences you should know between independent contractors and employees

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One of the ways of cutting cost in business is opting for independent contractors over employees. You can also employee women only, because they earn less haha!

READ: IMPORTANT THINGS TO TELL YOUR EMPLOYEES FOR BUSINESS SUCCESS

ALSO READ: THE COMMON TYPES OF EMPLOYEES IN KENYA

On a serious note though, there are circumstances where independent contractors or employees are the better alternative. You don’t simply jump in. Take a look at this table to learn about the differences between the two.

Employee Independent contractor
Mostly works for only one employer Works for more than one employer to provide services required
Has to work within the hours set by the employer Usually sets his or her own working hours depending on availability.
Mostly works at the employer’s place of business May require to work in his or her own office
Usually receives employment benefits Does not receive any employment benefits
The employer controls and directs his or her work Mostly works independently
Does not incur costs or make investments in the work Will incur costs associated with performing the work
Receives compensation in case of any workplace injury Is not entitled to any compensation unless agreed otherwise in the agreement
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