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Employment Types & Classification

Freelancer

A freelancer is a self-employed individual who provides services to multiple clients on a project or contract basis, rather than being employed on an ongoing basis by a single company. Freelancers typically have significant control over how, when, and where they complete their work, and they are generally responsible for managing their own taxes, benefits, and business expenses, since they are not classified as employees of the businesses they work with. Freelancing spans a wide range of industries and skill sets, from creative fields like writing, design, and photography, to technical work such as software development and consulting. Many freelancers work with several clients simultaneously, and the flexibility of this arrangement appeals to individuals who value autonomy over their schedule and the types of projects they take on. For companies engaging freelancers, particularly across international borders, correctly structuring the relationship is important to avoid misclassification risk, since some jurisdictions may consider a freelancer who works exclusively or primarily for one company, under significant direction and control, to actually be functioning as an employee under local law. Companies working with a global freelance workforce often use contractor management platforms or an Employer of Record's contractor compliance services to ensure these relationships remain properly classified in each country.

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