Contractuals Versus Regular Employees What Would Be Most Beneficial to your Company

Ann Gabriel | ExecutiveChronicles

Many Filipino workers are forgoing the traditional office job and are considering to go contractual or freelancing. Although going for contractualization may mean savings of time and money for your company, no painstaking trainings, and giving out health benefits or contribute to social security, you might just be forgetting something.

Contractuals aren’t fully committed and passionate about the job.

Be careful when hiring contractuals, you need to make sure your workers are properly classified.

Make sure that the specific terms of your arrangement with contractuals are laid out and understood by the independent contractor — number of working hours per day,  the immediate head of the contractor, how does he get paid, etc. These are things that you need to think about to avoid a possible lawsuit if you made those mistakes of not clearly indicating specifics in the contract.

Regular employees on the other hand are entitled to certain labor policies and benefits that independent contractors aren’t. The Department of Labor and Employment, together with the Bureau of Internal Revenue are on the lookout that companies might be not fulfilling their responsibilities to its workers.

Here are some things that you need to consider when hiring people.

1.Work processes and policies

Contractuals work for specific outputs, and within their comfort zone.

Most employees are required to be in the office for a set time and work within company policies.

2.Tools of trade

Should you provide the worker with his tools of trade or not? Does the tool of trade need specialized equipment or software which the worker does not have?  Will he be given access to company office supplies? Independent contractors should supply most or all of his or her own materials to complete a job.


Freelancers are generally paid for doing the job. Workers that get paid monthly or yearly amounts must be categorize d as an employee.

4. Training

Only employees are given appropriate training. Contractors are expected to do and know the job as soon as they sign one.


Workers who work for one company are closer to employee status.

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