A compliant independent contractor agreement for hiring in Brazil

Answering all your questions about independent contractor agreements in Brazil

You probably have questions. We’re here to answer them. Below, you’ll learn all the extra stuff you should probably know before putting together an independent contractor agreement for Brazil.

Why do I need an independent contractor agreement in Brazil?

Independent contractor agreements set the tone for the professional relationship between you and the contractor. They outline the scope of the project, compensation, deadlines, and expectations for both parties. In general, written agreements are the best way to ensure you and your contractor are on the same page before you begin working together.

In Brazil, independent contractor agreements help protect you from misclassification lawsuits in the future. Most Brazilian labor laws do not provide specific protection for independent contractors, occasionally resulting in lawsuits if a contractor believes they’ve been incorrectly classified. Independent contractor agreements buffer this by serving as a record of the initial consensus between you and the contractor and proving that your relationship did not venture into employee territory.  

The key word to remember when it comes to independent contractor agreements is accountability. They keep you and the contractor accountable to the guidelines you agree upon at the outset of the project. Written agreements leave no room for misunderstanding the parties’ professional relationship, protecting you both from issues in the future.

What do contractor agreements in Bolivia typically need to have?

Every contractor agreement in Brazil (and, the rest of the world) can be broken up into two parts:

• Contract-specific variables: This includes things like scope of work, rate, and deadline. They’re the project-specific variables that you’ll include with each contract, and are totally dependent on what type of work you’re hiring a contractor to do.
• ‍Everything else: Besides things like scope and deadline, every independent contractor agreement in Brazil should follow a similar structure. If you want to grab your own contract with a compliant structure for Brazil, sign up to Thera

What makes contractors different from employees in Brazil?

Independent contractors can be either individuals or entities hired to complete a task. Unlike employees, independent contractors work for themselves, so they retain additional freedoms. Often, this arrangement is the best of both worlds. As the proprietor, you get to divide up tasks and find the best possible candidate to complete them. Meanwhile, the contractor gets to pursue individual contracts that complement their skills, interests, and availability.

And, you never have to deal with the lengthy, expensive process of hiring using an Employer-of-Record service (an experience many companies wish they never decided to try).

Here are a few of the key things that make contractors different from employees in Brazil:

• Contractors can set their own schedules
• Contractors can work with their own software and tools 
• Contractors can work for other clients 
• Contractors rarely receive benefits, like health insurance*

Enlisting independent contractors gives both parties the flexibility to do what works best for them. You get to hire the best candidate for your projects and set a timeline that works for your business. Contractors get the freedom to pursue other work, and complete tasks according to their schedule. The best part is: both parties have the freedom to continue working together if they have a good experience, and Thera can help with agreements for each new project your ongoing professional relationship brings.

*With Thera, you can get your contractors access to sign up for premium global health insurance, from SafetyWing, at a 50% discount.

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