Country specific hiring info

A compliant independent contractor agreement for hiring in Panama

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Country specific hiring info

A compliant independent contractor agreement for hiring in Panama

Get your independent contractor agreement in Panama for $0

Hey, we’re Thera: The platform built for hiring and paying contractors, all over the world. We’ve got locally-compliant contracts in more than 150 countries—written to comply with local contracting laws in places like Panama.

The good news: Thera’s free until you pay your first contractor. So, grabbing your contractor agreement costs you a grand total of $0. Hit the button below to pick up your locally-compliant contract in Panama. It takes all of 2 minutes to sign up.

Answering all your questions about independent contractor agreements in Panama

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 Panama.

Why do I need an independent contractor agreement in Panama?

When you’ve found the right person(s) to work with in Panama, your next priority should be securing an independent contractor agreement. Neglecting to draft a written agreement can lead to confusion throughout your partnership about the scope of work, deadlines, and contractor compensation. It’s best to have the details written and signed to make sure everyone is in agreement from the beginning.

Sometimes companies choose to work with contractors without written agreements, but this is not the best idea. Panamanian law defines independent contractors as differing from employees by not being subordinate to the company they work with. Ensuring a contractor’s autonomy is respected and consistent with the terms in your independent contractor agreement can go a long way in protecting your company from potential misclassification risks in the future. Additionally, written agreements establish a legal record of the terms you and a contractor agree on, protecting you both legally if one party defects on those terms.

In general, it’s best to have a written independent contractor agreement, regardless of where you hire.

What do contractor agreements in Panama typically need to have?

Every contractor agreement in Panama (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 Panama should follow a similar structure. If you want to grab your own contract with a compliant structure for Panama, sign up to Thera
What makes contractors different from employees in Panama?

Hiring independent contractors is great for businesses because it tends to be faster, cheaper, and easier than hiring employees. There are some additional differences between the two beyond hiring, though, that are important to understand before making a decision for your company.

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

  • 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*

Being an independent contractor gives workers more autonomy than working as an employee. Because they legally work for themselves, they are not subject to a client’s direct control or supervision and may take on multiple clients at once. Thanks to your written agreement, you have the security of knowing a contractor is committed to completing the work you agreed on, so this arrangement is beneficial for you both.

*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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