A worker’s employment status is not a matter of choice and will depend on the terms and conditions of the relevant engagement. It is important for contractors to know whether they are working as employed or as self-employed, independent contractors. It is an employer's responsibility to correctly determine the employment status of its workers. The status of the contractor will influence taxes and social security payments and consequently the overall income retention rate.

There is no set number of factors in any given country that denotes the worker as an employee or as an independent contractor, and no one factor stands alone in making this determination. The key is to look at the entire relationship and the overall situation of the contractor.