A compliant independent contractor agreement for hiring in Ecuador

Answering all your questions about independent contractor agreements in Ecuador

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 Ecuador.

Why do I need an independent contractor agreement in Ecuador?

Independent contractor agreements are an important facet of the business relationship between companies and contractors. They should detail the work to be completed, deadlines, compensation, and any other terms relevant to the specific partnership.

Because Ecuadorian law does not define independent contractor relationships, it is important to have a written agreement that clearly establishes the terms between you and a contractor before you begin working together. At a minimum, the written agreement might demonstrate that you do not have control over when and how the contractor completes their work in order to protect you from employee misclassification risk. Beyond this, a written independent contractor agreement gives you and a contractor assurance that the other party is legally accountable for the terms you agreed on.

In short—it is necessary to have a written agreement if you’re working with contractors. In Ecuador, and everywhere else you hire.

What do contractor agreements in Ecuador typically need to have?

Every contractor agreement in Ecuador (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 Ecuador should follow a similar structure. If you want to grab your own contract with a compliant structure for Ecuador, sign up to Thera

What makes contractors different from employees in Ecuador?

Independent contractors are faster, cheaper, and easier to hire than employees. The differences between the two extend far beyond the hiring stage, though, and it’s important to understand those differences before making a decision for your business.

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

• 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*

Working as an independent contractor gives the contractor more autonomy than a traditional employer-employee relationship. They are free to complete their work when, where, and how they want within the terms of their independent contractor agreement, and pursue other contracts that align with their passions. As the proprietor, you take on less risk than hiring an employee. This gives you the flexibility to pursue the best possible talent to work with your business, and Thera can help with a contract for each new partnership you establish.

*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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