A compliant independent contractor agreement for hiring in El Salvador

Answering all your questions about independent contractor agreements in El Salvador

You may 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 El Salvador.

Why do I need an independent contractor agreement in El Salvador?

Independent contractor agreements help protect the interests of your company and a contractor. They clarify both partners’ rights and responsibilities to each other and generally help make sure you and a contractor are on the same page about the scope of work, deadlines, and compensation before you start working together.

El Salvador does not have significant guidelines regarding the legal difference between contractors and employees. This makes a strong, written agreement even more important for your arrangements with contractors. Typically, independent contractors are workers who remain legally self-employed and, as a result, are entitled to complete their work without direct oversight or control from the hiring company.

Because independent contractors are not usually not fully protected by the labor code, it is in their best interest to have a written agreement to ensure they receive the compensation they were promised. As the hiring company, it is in your best interest to have a written agreement as well, because they hold a contractor legally accountable for completing the work you agreed on.

So is a written agreement really necessary? Absolutely. Getting a contract right can be a little more difficult to navigate than making a verbal agreement, but it is worth it for the protection of your company’s interests and the contractor’s rights.

What do contractor agreements in El Salvador typically need to have?

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

What makes contractors different from employees in El Salvador?

Companies typically note that hiring independent contractors saves them time and money compared to hiring employees. There are some important differences between employees and contractors to understand before you move forward with an agreement, though.

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

• 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*

Many talented professionals are drawn to contracting because of the additional freedoms it entails relative to employees. In general, contractors may complete their work how they want and can work with additional clients at their own discretion. As the hiring company, you get to work with someone qualified to complete your tasks without having to oversee their working process, potentially freeing up resources to be used elsewhere. If this sounds ideal for your business, we can help you get the hiring process started with a compliant agreement.

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

Click here to learn more about hiring your team in El Salvador.