A compliant independent contractor agreement for hiring in Eritrea

Answering all your questions about independent contractor agreements in Eritrea

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 Eritrea.

Why do I need an independent contractor agreement in Eritrea?

If you’ve found a contractor you want to work with, securing a strong independent contractor agreement should be your top priority. Independent contractor agreements are the legal foundation of your partnership, and they typically detail all of the important terms like the scope of work, compensation, and deadlines. A contract may also include provisions for which the hiring party may terminate the contract before its slated conclusion. 

The Eritrean civil code provides clear guidelines for conflict resolution in the event that one party raises a dispute. Having a written contract is the best way to ensure any judgment reached in a dispute is consistent with the terms you and a contractor initially agreed to. Written contracts also go a long way in protecting your company from expensive misclassification risks.

 In Eritrea, the primary guideline for deciding if a contractor has been misclassified is through an assessment of their independence. A contractor should have the right to (1) perform tasks as they wish and (2) not be bound to comply with instructions from the client beyond what was initially agreed. Ensuring your contract is compliant with these terms is an excellent way to protect your company legally and financially. 

So do you really need a written independent contractor agreement? Of course. The extra effort in the beginning is worth the financial security of your company down the road.

What do contractor agreements in Eritrea typically need to have?

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

What makes contractors different from employees in Eritrea?

In most cases, hiring contractors will save your company time and money compared to hiring employees. The ease of hiring does not paint a full picture of the differences between employees and contractors, though. Unlike employees, contractors maintain a legally self-employed status, making their freedoms different from an average employee's.

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

• 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*

It’s easy to understand why working as an independent contractor is preferred by so many talented professionals. They get to exercise freedom over their careers and pursue work that interests them without being tied to one company or schedule. Companies win in this arrangement too, because they can have tasks completed without going through a lengthy hiring and onboarding process. If hiring independent contractors sounds like it’s best for your company, Thera can help you get the ball rolling with a written agreement.

*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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