Contractor of record

Engage contractors the right way, everywhere

Correct worker classification, a compliant contract, and weekly pay — without you needing to become a labour-law expert in every country you hire from.

How it works

From engagement to weekly payout in four steps

1

Define the engagement

Scope, rate, duration, and deliverables. The compliance engine checks the arrangement against the local classification test to confirm contractor status is legally defensible in that jurisdiction.

In the US, that's the IRS 20-factor test and any state-specific tests (California's AB5/ABC, Massachusetts' ABC). In the EU, subordination and control tests that vary by member state. In Brazil, the absence of CLT employment indicators. The platform applies the correct test — it can't be overridden.

2

We generate the contract

A locally compliant contractor agreement is issued automatically. It covers the scope of work, payment terms, IP assignment, confidentiality, and termination provisions — all tailored to the contractor's jurisdiction.

IP assignment clauses vary by country. In the US, work-for-hire may apply directly for certain categories. In most other jurisdictions, explicit assignment clauses are required. The contract generator knows which applies where.

3

Worker gets paid weekly

The contractor receives 100% of the agreed rate every Friday, through whichever payment rail works in their country. No invoicing back and forth, no chasing payment, no net-30 waits.

Payment rails include bank transfer, Stripe Connect, Wise, and local mobile money rails. The contractor chooses their preferred method; settlement is automatic once the engagement is active.

4

Compliance runs in the background

The platform monitors for misclassification risk throughout the engagement. If the working relationship evolves in a way that makes contractor status indefensible — increasing supervision, fixed hours, integration into the team's org chart — you're flagged before regulators find it.

Misclassification penalties range from back-taxes and benefits to fines and criminal liability in some jurisdictions. The monitoring is automatic: the system tracks indicators and flags changes.

Contractor of record pricing

$39/worker/month

Flat fee, added to your platform subscription. The contractor receives 100% of the agreed rate. Corpshore charges the client, never the worker.

✓Classification compliance

✓Contract generation

✓Weekly payment processing

✓IP and confidentiality clauses

✓Ongoing monitoring

✓Full audit trail

Full pricing breakdown

Worker classification

Every country has a different test. The platform applies the right one.

Worker classification isn't a checkbox — it's a jurisdiction-specific legal analysis. Here's what the compliance engine evaluates in key markets.

United States

IRS 20-factor test + state-specific tests

The IRS looks at behavioural control, financial control, and type of relationship. California's AB5 presumes employment unless the hiring entity proves all three prongs of the ABC test. Massachusetts has its own ABC variant. The platform applies the federal test plus any relevant state test.

European Union

Subordination and control tests (varies by member state)

Most EU countries use a subordination test: if the person works under the direction and control of the hiring entity, with fixed hours and integration into the organisation, they're an employee regardless of what the contract says. The specific indicators vary by country.

United Kingdom

IR35 and employment status tests

IR35 targets 'disguised employment' — contractors who work like employees but bill through a personal service company. The test looks at mutuality of obligation, personal service, and control. Since April 2021, medium and large companies determine the status, not the contractor.

Brazil

CLT employment indicators

Brazilian law presumes employment when there's subordination, habitual work, and personal service. The CLT (Consolidação das Leis do Trabalho) doesn't have a formal 'contractor test' — instead, the presence of employment indicators overrides the contractual label.

Australia

Multi-factor common law test

Australian courts look at the totality of the relationship: control, integration, economic dependency, and the parties' characterisation. The High Court's 2022 decisions in CFMMEU v Personnel Contracting and ZG Operations v Jamsek clarified that the written contract is the primary reference point, but the test remains multi-factorial.

India

Principal employer tests under labour codes

India's four consolidated Labour Codes (2019-2020) define 'employee' and 'worker' broadly. Contract labour is governed by the Contract Labour (Regulation and Abolition) Act. The key factors are supervision, control, and whether the contractor serves multiple clients or just one.

Contractor of record questions

What if the classification test says this should be employment?+

Then you can't engage the person as a contractor through Corpshore Work. The platform can't be overridden to classify someone as a contractor when local law says they're an employee. If the arrangement looks like employment — fixed hours, ongoing direction, integration into your team — the compliance engine will recommend EOR instead.

Does the contractor have to use Corpshore for invoicing?+

The platform handles invoicing automatically. The contractor doesn't need to create, send, or chase invoices — payment is settled weekly through the platform. They see a clear record of every payment in their dashboard.

Can I convert a contractor to a full-time employee later?+

Yes. A conversion buyout applies: 20% in the first 12 months, 10% at 12-24 months, 0% after 24 months. The compliance engine transitions the engagement to EOR: new employment contract, tax withholding, benefits enrolment, and any mandatory notices.

What's included in the $39/worker/month fee?+

Classification compliance (initial check plus ongoing monitoring), contract generation and management, weekly payment processing, IP assignment provisions, confidentiality clauses, and a full audit trail. The contractor receives 100% of the agreed rate — the fee is charged to you, never deducted from the worker's pay.

What if local law changes and the contractor is reclassified?+

The compliance engine monitors regulatory changes. If a jurisdiction changes its classification rules in a way that affects your engagement, you're flagged proactively. We can help transition to EOR if the new rules mean contractor status is no longer defensible.

How does misclassification monitoring work in practice?+

The system tracks indicators that courts and regulators use to determine employment status: duration of engagement, degree of control, exclusivity, integration into the organisation, and dependency. If the pattern shifts toward employment — for example, the contractor starts working exclusively for you for an extended period — the platform flags it and recommends a review.

Hiring someone full-time instead?

If the role needs full employment status rather than a contractor relationship — statutory benefits, labour law protections, indefinite employment — employer of record is the better fit.

Contractor of record | Corpshore Work