You will be directed to enter a requisition. It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.If an independent contractor is later found to be a de facto employee and penalties are assessed, these costs would accrue to the contracted department. Some. It is vital that you understand the distinction between independent contractors and employees. For foreign companies hiring contractors in the Philippines, the Department of Labor and Employment (DOLE) has a set of guidelines. Independent contractor providing services pursuant to this Agreement. INDEPENDENT CONTRACTOR: Page 4.