5 ms·

This sounds really odd to me (UK-based, previously was contracting) — if someone is hired as a contractor, normally your company would be engaging their limited

This sounds really odd to me (UK-based, previously was contracting) — if someone is hired as a contractor, normally your company would be engaging their limited company as some type of consultancy arrangement. So you wouldn't have any maternity leave or paid time off at all. In fact, from the contractor's point-of-view, you'd want to run a mile from these things as if the revenue believed you were a de facto employee (since you're getting company benefits) your tax liability would balloon. But see no reason that a European founder couldn't hire freelancers/contractors in the same way that your company does.

arcturus17 5y ago
In Spain if you hire full-time contractors long term they can be considered full-time employees by law. There are ways around this such as hiring through temp agencies, hiring part-time or rotating them. But trying to do “FTE as contractor” is risky.
- spaniard89277 5y ago
  That only applies if you hire from a spanish company and for a defined set of circunstances AFAIK.
tinco 5y ago
This sounds too good to be true. I don't know about other countries in Europe, but in The Netherlands it is definitely illegal to have a contractor work in employment conditions. I.e. you're not allowed to give a contractor set work hours, not allowed to specify how they work, not allowed to prevent them from outsourcing the work, etc. If you do those things, and the tax service finds out, or a "contractor" gets sick and decides to demand you pay them sick leave, you're in deep trouble.
- mbeex 5y ago
  The same in Germany. The people can be easily classified as bogus self-employed (scheinselbststaendig). The company would have to pay social security contributions retroactively up to 4 years. Furthermore, the 'contractors' could sue their way into employment. Also, workarounds mentioned elsewhere, like employment as temp by utilizing intermediate staffing companies, became widely known in time also to government agencies. Most companies will fire/replace such staff after 18 month max for this reason.

arcturus17 5y ago

In Spain if you hire full-time contractors long term they can be considered full-time employees by law. There are ways around this such as hiring through temp agencies, hiring part-time or rotating them. But trying to do “FTE as contractor” is risky.

spaniard89277 5y ago
That only applies if you hire from a spanish company and for a defined set of circunstances AFAIK.

tinco 5y ago

This sounds too good to be true. I don't know about other countries in Europe, but in The Netherlands it is definitely illegal to have a contractor work in employment conditions. I.e. you're not allowed to give a contractor set work hours, not allowed to specify how they work, not allowed to prevent them from outsourcing the work, etc. If you do those things, and the tax service finds out, or a "contractor" gets sick and decides to demand you pay them sick leave, you're in deep trouble.

mbeex 5y ago
The same in Germany. The people can be easily classified as bogus self-employed (scheinselbststaendig). The company would have to pay social security contributions retroactively up to 4 years. Furthermore, the 'contractors' could sue their way into employment. Also, workarounds mentioned elsewhere, like employment as temp by utilizing intermediate staffing companies, became widely known in time also to government agencies. Most companies will fire/replace such staff after 18 month max for this reason.