Interactive tool
Independent Contractor vs Employee Assessment
Answer questions about the working relationship to assess whether it is more likely to be classified as employment or independent contracting under South African law.
For general guidance only. This tool provides general guidance only and does not constitute legal advice. The classification of a working relationship depends on all the facts and circumstances. Always obtain professional advice before structuring or challenging a working arrangement.
Factor 1
Does the engaging party control not just what work is done, but how and when it is done?
Control over method and timing is the strongest indicator of employment.
Factor 2
Does the worker work exclusively or predominantly for one party?
Working for multiple clients is a strong indicator of independent contracting.
Factor 3
Does the worker use the engaging party's equipment, premises, or tools?
Providing your own equipment is a contractor indicator.
Factor 4
Is the worker paid a fixed salary or wage (rather than a project-based fee on invoice)?
Fixed salary = employment indicator. Invoice-based payment = contractor indicator.
Factor 5
Is the worker integrated into the engaging party's organisation (attends meetings, uses their email, appears on their org chart)?
Integration into the organisation is a strong employment indicator.
Factor 6
Can the worker subcontract the work or send a substitute to perform it?
The ability to delegate or substitute is a contractor indicator.
Factor 7
Does the worker bear the economic risk of profit and loss on the work?
Bearing financial risk (e.g., cost overruns, defective work) is a contractor indicator.
Factor 8
Does the worker have their own business registration, VAT number, or professional indemnity insurance?
Having an independent business structure supports contractor classification.