a. How to Properly Document the Relationship
In order to establish a clear difference between an independent contractor and an employee when documenting the relationship in an agreement, the following must be clearly stated:
• the services to be rendered by the independent contractor must be clearly determined and limited to a precise scope of services;
• the duration of the agreements is limited to a period of time;
• it must be clearly stated that the relationship is civil or commercial and the agreement will not be governed by labor laws;
• ithe inclusion of legal benefits granted to employees must be avoided;
• indthe payment cannot be documented as “salary” but as “fees”; and
• it must be clearly stated that the independent contractor is the owner of his/her own tools and aquipment to perform the hired activity.
b. Day-to-Day Management of the Relationship
In order to maintain a civil or commercial work relationship it is important for the contracting party to maintain the independence of the contractors whenever they are rendering their services as well as the independence of the employees of the independent contractors; by not giving the contractors any elements that are normally given to actual employees of the company; by making sure that the contractors comply with social security registers and payments as independent contractors requesting proofs of registrations and monthly payments; and verifying how the personnel of the independent contractor are being engaged, if the independent contractor has subordinated personnel. This should be achieved through an employment agreement.