Growing companies turn to new talent in many ways to support their expansion goals. While hiring employees internationally is an option, you may also look for independent contractors. These professionals can offer beneficial services to your company if you hire them according to legal regulations.
Hiring contractors in Morocco
Contractors may offer the skills you need to complete short- and long-term projects within your company. Understanding the framework for this designation can help you sidestep the risks that come with misclassification.
Independent contractors vs. full-time employees
Generally, independent contractors are professionals who are free from direction and control regarding the performance of their services. Contractors engage in an independently established occupation, trade, business, or profession. They are not provided any statutory benefits and they must file and pay their own taxes.
Any person who does not meet the requirements of an independent contractor is considered an employee. Direction and control can include many factors, such as regular reviews, training, specifying the work hours or location, or directing the individual on how to perform tasks.
Penalties for misclassification
Companies may define full-time employees as independent contractors erroneously or to save on employment costs, but this misclassification comes with risk.
If a governing body determines you’re working with a full-time employee, you can be subject to fines, back payments on tax and social security, and other penalties.
How to hire independent contractors in Morocco
Your company can follow 3 defined steps when hiring an independent contractor.
1. Carefully conduct interviews.
There are no laws regarding how to conduct interviews with independent contractors, but a careful approach can emphasize the role your contractor will have.
In an employee interview, you might focus on how the individual contributes to company culture and values. In the case of a contractor, these questions are irrelevant. Instead, ask questions about skills and experience to confirm that a contractor has the ability to complete your project. Treat your interview as a business transaction.
2. Create a service agreement.
Service agreements take the place of employment contracts when hiring an independent contractor. This document will outline the terms of service so both parties understand their rights and obligations. The critical points to cover in this agreement are:
- Pay rate and arrangements.
- Description of project.
- Definition of project completion.
- Termination terms.
3. Introduce necessities.
Onboarding or training processes indicate control on the company’s part, so it’s essential to forgo these processes with contractors to avoid misclassification. Focus on introducing the necessities for completing the project, such as workflows the contractor will contribute to and essential points of contact within your company.
How to pay independent contractors in Morocco
Since independent contractors are not subject to minimum wage laws like employees, they determine payment for their services. Contractors typically provide invoices for the work they provide. Companies are not responsible for deducting tax or social security from these payments.
Payment schedules will vary between contractors. Some may expect installments, while others may prefer a lump sum at the end of the project. When drafting the service agreement, companies and contractors can discuss these pay expectations.
Terminating independent contractors
Independent contractors do not have protections against dismissal and termination like employees. The service agreement should describe any termination terms and conditions, such as reasonable causes for dismissal or required notice periods.
Turn to G-P when hiring independent contractors in Morocco.
As a part of our #1 suite of global employment products, G-P Contractor allows companies to hire and pay global contractors faster, with self-service workflows and a wide set of flexible payment options. Whether you’re hiring employees or contractors, our platform streamlines the process with a single solution for your global workforce.
Contact us to learn more.