Rehiring employees as contractors is legally accepted. Learn how to determine whether a person providing a service to you is an employee or an independent contractor.Watch out for independent contractors who are former employees performing the same job as before. Use an independent contractor agreement to establish the terms of the working relationship. Your employer IS in breach of contract. An independent contractor agreement is a contract between a client and contractor that outlines the scope and obligations of the business relationship. You can meet with the IC, agree on the terms of your arrangement, and have an oral contract or agreement that is legally binding. Yes, businesses may hire former employees as independent contractors if the relationship can support that classification. When I started my job I was told I was being classified as an independent contractor, but I was treated as an employee. (Set hours, company…