Frequently asked questions about the pros and cons of a civil-law contract

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maksudasm
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Frequently asked questions about the pros and cons of a civil-law contract

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A civil-law contract is a convenient tool for attracting one-time work and services, especially if highly specialized specialists and freelancers are needed.

How to structure work with the minuses of a business contract?
Risks can be reduced if the contract contains checkpoints. All work is divided into stages. After each stage is completed, the customer is given an intermediate result. Payment can also be introduced after each stage.

What are the non-obvious benefits of the contract for the employer?
A company or individual overseas chinese in canada data entrepreneur can simultaneously conclude both a civil-law contract and an employment contract with a full-time employee. This is possible if the employee works on staff and in his free time is engaged in other activities that differ from his job responsibilities.

For example, a sales manager may work under a civil-law contract when making a company logo. But here it is important to avoid substituting labor relations, so as not to arouse suspicion from the tax authorities.

What is the non-obvious disadvantage of the contract for the employee?
In a contract for work, the customer can terminate the contract at any time, and the contractor will receive payment only according to the completed volume of tasks. Uncovered expenses must also be covered.

But the contractor has no right to demand compensation for lost income. Therefore, the civil-law contract must contain a separate clause specifying the conditions for early termination and compensation from both the employer and the contractor.

It is possible to use such methods, taking into account all the risks and limitations, while observing the law.

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Dmitry Svistunov
Dmitry Svistunov
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