Can Contractors Get Severance Pay

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In an organization, employees typically work for an employer. They're usually contracted for a specific period. The relationship between employees and an employer is usually based on long time frames, like years. The employer provides the work tools, office space, supervises the work done, and determines how the work should be done.

The law can deem you as a contractor if you set your schedule, determine overseas chinese phone number list how the work is done, and have the ability to employ other workers. Independent contractors can still be categorized as employees by law due to their relationship with the employer.

Usually, independent contractors aren't entitled to severance pay. This is because they aren't considered employees of an organization. However, there are three special occasions under which they may get compensated if the contract is terminated:

As stated In The Contract
Before working for an organization, some terms and conditions can be set. One of the terms set could be about the severance package. If the agreement states that the contractor is to be paid, the employer must pay the stipulated amount. It’s usually crucial for a contractor to involve a legal practitioner when signing contracts to get the best out of it.