Sham self-employment among consultants

Introduction: theory vs reality

"Sham self-employment" sounds like a legal monster. In practice, it is often not so bad for consultants, especially if you work through an agency and change projects regularly. Such an intermediary often acts as a buffer and confirms that you are really self-employed, not a disguised employee.

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Why agencies reassure

Many consultants bill through an agency that places the order with the end client.

It helps because:

• you have multiple clients or projects, thus enhancing your independent profile;
• contractually stipulate that there is no hierarchical control;
• you do not focus on one client, reducing the risk of re-qualification.

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Contract + practice: defining together

The legislation emphasises that contractual agreements as well as actual cooperation together underpin your status. A clear contract is not enough if you work in practice like an employee. Just check what you pay attention to:

• Well formalised as cooperation (no holiday pay, no group insurance, no fixed monthly wages).
• Autonomy in working hours, working methods and use of proprietary tools and methods.
• Liability and independence clearly in your contract.

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When to be wary?

Tax authorities and NSSO look extra keenly at situations such as:

• Permanent staff that leaves as an employee and returns immediately as a freelancer.
• Constructions that want to dodge labour costs: real no-goes.

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Keep the right balance

Don't get carried away by scare stories. Do you work through an agency, have multiple projects and a solid contract that you also adhere to in practice? Then you are usually well-covered. Make sure:

• your contract affirms your independence;
• your practice that contract follows;
• arrangements with client or agency suit the independent nature of your work.

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In doubt? Have it assessed

If in doubt, you can contact the Administrative Commission for the Regulation of Labour Relations (CAR) To have your relationship assessed as self-employed or salaried.

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Conclusion

For many consultants, false self-employment is mainly a theoretical care. Working through an agency, with multiple projects and a clear contract That you comply with in practice? If so, there is usually little is the matter. Continue your freelance path with confidence-with attention to the rules, but without undue anxiety.