How to protect NGOs and ICs from employment noncompliance
March 28, 2022
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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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