NGOs, nonprofits and independent contractors

March 28, 2022

How to protect your mission from the costly risk of employment noncompliance

Is your NGO or nonprofit using independent contractors for your international projects? If so, you may be unwittingly putting your organization at risk of employee misclassification and mission-derailing penalties if you’re not fully versed in the local labor laws.

Although rules defining and governing employment vary from country to country, virtually every government around the world has at least some definitions for how workers should be treated and classified, and these often include rules for employment contracts.

Employee misclassification considerations for NGOs and nonprofits

So, how can you protect your organization and its mission when using independent contractors in foreign countries? Here are some areas to consider:

  • Pay: Are contractors paid for time worked rather than per project?
  • Equipment: Does a contractor use your equipment or tools to complete a job?
  • Exclusivity: Does the contractor only provide services to your NGO and does so for an extended period?
  • Management: Do contractors report directly to someone on your team, and is their day-to-day work managed by one of your supervisors?
  • Expenses: Do your contractors have expense accounts or company credit cards?

In this ebook, we’ll cover these considerations, as well as examples of penalties for employee misclassification from around the world, to help your NGO or nonprofit understand what’s at stake, and what you can do to protect your organization.

Our ebook is based on our years of experience helping NGOs and nonprofits navigate complex labor laws in order to compliantly hire the workers they need to further their missions around the world.

After you download and read the ebook, contact us to learn more about how an employer of record can provide local HR expertise to guide you as you hire workers around the world.

Learn more: Global employment guide for NGOs

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