Hey, we’re Thera: The platform built for hiring and paying contractors, all over the world. We’ve got locally-compliant contracts in more than 150 countries—written to comply with local contracting laws in places like Tanzania.
The good news: Thera’s free until you pay your first contractor. So, grabbing your contractor agreement costs you a grand total of $0. Hit the button below to pick up your locally-compliant contract in Tanzania. It takes all of 2 minutes to sign up.
You may have questions. We’re here to answer them. Below, you’ll learn all the extra stuff you should probably know before putting together an independent contractor agreement for Tanzania.
An independent contractor agreement is a legally binding outline of the details of your partnership with a contractor. They force you and a contractor to agree to specific terms, making dissolving any future disputes an easier process. Beyond this, they are vital in protecting your company from potential penalties.
The Tanzania Revenue Authority considers several factors when determining if an independent contractor has been misclassified, subjecting the hiring company to tax liability. For a worker to be considered an independent contractor, the hiring company must not dictate the way the contractor completes their work, pay the contractor via a fixed repetitive payout, prevent the contractor from taking on other clients, or provide employee-like benefits to the contractor. Deviating from any of these guidelines can put your company at risk for hefty financial penalties, so ensuring your arrangement is consistent with the contractor's freedoms is paramount. A compliant agreement provides a record of the nature of your partnership, helping to protect your company from misclassification penalties by proving your terms did not venture into employee territory.
So is it worth having a written independent contractor agreement? Yes. For the protection of your business, a written contract is ideal.
Every contractor agreement in Tanzania (and, the rest of the world) can be broken up into two parts:
The hiring process for independent contractors is less extensive than for employees, often saving businesses time, money, and stress. Before you begin the process with a contractor, though, you should understand the full scope of differences between contractors and employees.
Here are a few of the key things that make contractors different from employees in Tanzania:
It’s probably clear why so many professionals are choosing to work this way. Independent contractors get more autonomy than typical employees, empowering them to take charge of their careers and take on work that aligns with their interests. Meanwhile, companies can find talented workers with ease without adding the stress of the employee hiring process or expending resources to supervise them. If this is right for your business, we can help you get started with an independent contractor agreement.
*With Thera, you can get your contractors access to sign up for premium global health insurance, from SafetyWing, at a 50% discount.
Click here to learn more about hiring your team in Tanzania.
Book a demo to get started.