Worker misclassification occurs when someone engaged as an independent contractor is deemed by local authorities to actually be an employee under local labour law. The consequences range from back-payment of employment taxes and social contributions to significant regulatory fines — and in some jurisdictions, criminal liability for company directors. With Zyltex Contractor of Record, your contractor agreements are structured and maintained to comply with local definitions of independent contractor status, with ongoing monitoring to flag emerging risk.
A contractor agreement that protects you in the UK may expose you to risk in Germany, Brazil or Australia. Zyltex drafts contractor agreements that are built specifically for each country's definition of independent work — covering control, exclusivity, substitution rights, and economic dependence tests.
A contractor agreement that protects you in the UK may expose you to risk in Germany, Brazil or Australia. Zyltex drafts...
The risk of misclassification is not a one-time check — it evolves as a working relationship develops. Zyltex performs periodic reviews of each contractor relationship to ensure the engagement remains outside the definition of employment in the relevant jurisdiction, flagging any changes that increase risk.
The risk of misclassification is not a one-time check — it evolves as a working relationship develops. Zyltex performs...
If a tax authority or labour regulator investigates a contractor engagement, you need a complete, contemporaneous record of the relationship. Zyltex maintains audit-ready documentation for every engagement, including contracts, renewal records, and compliance review history.
If a tax authority or labour regulator investigates a contractor engagement, you need a complete, contemporaneous record...
Tell us the contractor's country, role, engagement terms and expected duration. We assess the local classification risk and recommend the right engagement structure.
Zyltex drafts a locally appropriate contractor agreement. Both parties sign digitally, and we verify the contractor's registered business status where required.
We hold the legal contractor relationship, handle contract renewals, and conduct periodic reviews to ensure the engagement remains compliant as the relationship evolves.
Every document, review, renewal and communication is recorded and retained. If you are ever subject to a compliance review, Zyltex provides complete documentation support.
Software companies working with developers, designers and consultants across multiple countries who need enforceable, compliant contracts.
Companies where contractors have worked for extended periods, increasing misclassification risk under economic dependence rules.
Businesses operating in markets like Germany, France, Spain, Australia and Brazil where misclassification enforcement is particularly active.
Organisations that have received queries from tax or labour authorities about their contractor workforce and need to rapidly demonstrate compliance.
We had over 30 contractors across 12 countries and absolutely no confidence that our agreements would hold up to scrutiny. Zyltex reviewed every engagement, restructured the contracts, and gave us an audit-ready compliance record within six weeks.
Employer of Record is used for full-time employees — Zyltex becomes the legal employer and provides full employment entitlements. Contractor of Record is for independent contractors — Zyltex manages the legal contractor relationship without providing employment rights, maintaining the contractor's independent status.
The number of contractors is less important than the markets they operate in and the nature of the relationship. A single long-term contractor in Germany or France can represent significant misclassification risk. We'll assess your specific situation on a consultation call.
Yes — if a contractor engagement reaches the point where employment status is more appropriate, Zyltex can transition the individual to our EOR service, with full continuity of service managed by our team.
Requirements vary by country. In some markets contractors must have a registered business entity. Zyltex will advise on the specific requirements for each jurisdiction and support the contractor in meeting them.
Zyltex Contractor of Record is available in 50+ countries, covering the key markets where misclassification risk and contractor compliance requirements are highest. Contact us to confirm availability in your specific countries.
Manage and pay global contractors — without the admin chaos.
Hire anyone, anywhere — without opening a single entity.
Run payroll in 150+ countries — accurately, on time, every time.
Book a 20-minute call and we'll show you exactly how Zyltex works for your team and markets.
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