Contractor hiring doesn’t have to mean compliance headaches.
With the right setup, you can access speed, flexibility, and specialist expertise, without exposing your business to unnecessary risk..
Handled correctly, contractor compliance is straightforward, scalable, and secure. Handled poorly, it can result in fines, reputational damage, and delivery disruption.
Here’s how to keep it simple, safe, and commercially smart.
Stay Compliant from Day One
Understand Local Regulations
From IR35 in the UK to AB5 in California, every market has its own rules for contingent workers. These laws define whether contractors are taxed as employees, whether they qualify for benefits, and what protections apply.
Why it matters:
Ignorance isn’t a defense. If you get it wrong, regulators may hold your business accountable.
Examples
- IR35 (UK): Decides if a contractor is “inside” or “outside” employment tax rules.
- AWR (UK): Gives contractors parity rights after 12 weeks under certain conditions.
- AB5 (California): Applies a strict three-part test for contractor status.
- FLSA (US): Federal law covering worker protections and pay standards.
Get the Classification Right
The single biggest compliance risk is misclassifying contractors as employees.
Why it matters:
If a contractor looks and works like an employee, regulators may reclassify them, leaving you liable for back taxes, benefits, and penalties.
Examples
- Do they control their own hours and methods?
- Can they send a substitute to deliver the work?
- Are they delivering outcomes, not just filling a seat?
Use Outcome-Focused Contracts
Strong contracts protect both you and the contractor. They prove independence, define expectations, and reduce liability
Avoid vague templates. Contracts should be tailored to the engagement and reviewed by specialists.
Must-have clauses
- Clear deliverables and timelines
- Payment terms and invoicing rules
- Termination rights
- NDA and confidentiality protections
- IP ownership terms
- Insurance and liability requirements
Protect Your Systems and Data
Contractors often need access to sensitive tools, environments, and customer data. Without proper controls, that access can become a compliance and security risk.
Why it matters:
Contractors may work with multiple clients. Strong protocols protect you against IP leaks, GDPR breaches, or regulatory exposure.
Best practices
- Grant only the access required for the role
- Enforce NDAs and security policies
- Use company-managed devices where possible
- Audit access regularly and revoke it immediately at project end
Partner With a Specialist
The fastest way to remove compliance risk is to work with a specialist partner who manages it for you.
Why it works:
You keep control over delivery. We handle the legal and administrative complexity.
With Tenth Revolution Group, you get:
- Pre-vetted contractors with right-to-work checks complete
- IR35, 1099, and A1 classification handled by in-house legal experts
- Market-specific contract templates
- Onboarding, insurance, and timesheet management included
- Exit and transition processes to ensure clean handovers
Why Tenth Revolution Group Makes It Easy
With 20+ years of experience and the world’s largest network of trusted tech talent, we help you access the right contractor at the right time, across cloud, CRM, ERP, security, AI, data, and beyond.
Compliance confidence
Contractors placed in days, not months
Reduced admin
contracts, onboarding, and insurance covered
end-to-end
end-to-end
Global expertise
support across 20+ countries with local market knowledge
Commercial clarity
no surprises, no hidden liabilities
Ready to Hire Contractors Without the Compliance Risk?
With TRG, you get speed, flexibility, and expertise, backed by full compliance confidence.
Why choose us?
We’re more than recruiters. We’re tech talent specialists with a global network and local focus.
