Date published: 09/04/2024
Hiring of staff: employee or independent contractor?
Managing human resources in co-ownerships is a challenge from both a financial and management point of view; flexible working hours, the possibility of working from home and other work-life balance measures are all factors to be taken into account. Unless the directors carry out the housekeeping of the common portions themselves, the syndicate of co-owners will have to employ people such as a janitor, man maintenance, a doorman, a security guard, etc. It should be noted that the possibility of recruiting one of the co-owners is not excluded but can prove to be a complex and delicate situation to manage; this will not be the ideal solution.
Most common qualification: contractual relationship
In the majority of cases, a person working on a regular basis or even part-time for the co-ownership is considered to be an
employee governed by a
contract of employment and not as an independent contractor.
Definition of a contract of employment
Characteristics of a contract of employment
There are three cumulative conditions for a contract of employment to exist:
- work performance;
- remuneration (volunteering excludes any contract of employment);
- a relationship of subordination.
It is the last condition that makes all the difference between an employee and an independent contractor.
Employee or Independent contractor?
Warning: the main criteria are as follows but non of them should be analyzed on their own; each case remains unique:
- economic dependence due to exclusive work on behalf of the syndicate;
- the existence or absence of a specific work schedule;
- the supervision or not exercised by the syndicate;
- the ownership of tools;
- the possibility of hiring additional labor or adding help;
- the existence or absence of source deductions (DAS);
- the possibility of making profits or incurring losses;
- operating a sole proprietorship registered with the General Inspector of Financial Institutions or incorporating a company.