Misclassifying workers as independent contractors instead of bona fide employees is a growing danger for companies in the U.S. Big names such as FedEx Corp. have gotten into trouble for allegedly putting their workers in the wrong legal category, denying them the protections and benefits that come along with being a full-fledged employee. However, U.S. companies aren’t facing this classification danger solely on domestic turf and under domestic employment laws.
There’s plenty of potential for a similar slipup in other countries, too, where companies might not have as strong a presence and therefore less of an ability to detect and remediate employment mistakes. The laws of other countries also may levy higher penalties for calling someone an independent contractor when he or she is actually a real employee.
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