As stated above, an independent contractor employment relationship does not require a written contract. However, to clearly define an employment relationship from the outset, an employer should issue the contractor a written statement of terms and conditions (Dienstzettel). This statement of terms must include basic information regarding the employment arrangement, including the names of the two parties, basic salary or wages, date that the arrangement commences, and any classification within the labor system. This written statement of terms is often required for the employee to register for social insurance, if they are seeking to do so independent from their employer.
In addition to this contract, an employer should remain cognizant of how the contractor is carrying out the indicia of their employment and remain sensitive to whether the contractor’s scope of employment is bleeding into the employer’s basic organization structure. Recommended business practices dictate, at the very least, monthly written or oral evaluations or memoranda concerning the scope of the contracted party’s employment to maintain records that may be used to refute a claim for re-characterization of employment.