Employee misclassification occurs when an employer incorrectly classifies an employee as an independent contractor. This practice is common, and it can have serious consequences for both employers and employees.
For employers, misclassifying employees can lead to significant fines and penalties in many countries. In addition, it can create a competitive disadvantage if other businesses are correctly classifying their workers.
For individuals, misclassification can result in reduced benefits, poorer working conditions, and reduced job security. As a result, it's important for both employers and employees to be aware of the risks of employee misclassification.
Check out our Employee Misclassification Analyzer for a quick assessment to properly classify employees and independent contractors in jurisdictions around the world and avoid the risk and legal complications of misclassification.
Hiring contractors may seem like a simple way to scale your team quickly. But, as outlined above, if a contractor actually operates like an employee, your company could be exposed to various legal, financial, and operational risks.
Not to worry. Oyster’s contractor conversion solution can help you assess your risks in different countries, weigh the costs and benefits of both employment models, and compliantly transition contractors to full-time employment.
That’s right, with Oyster you can:
Skip the stress of handling contractor conversion alone. Try Oyster’s global employment platform today.