An independent contractor is a person or business who performs services for another person pursuant to an agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays his/her own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage.
There are a number of factors which to consider in making the decision whether people are employees or independent contractors. One of the most important considerations is the degree of control exercised by the company over the work of the workers. An employer has the right to control an employee. It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work performed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees.
Another factor to be considered is the connection and regularity of business between the independent contractor and the hiring party. Important factors to be considered are separate advertising, procurement of licensing, maintenance of a place of business, and supplying of tools and equipment by the independent contractor. If the service rendered is to be completed by a certain time, as opposed to an indefinite time period, a finding of an independent contractor status is more likely.
Restrictions to prevent competition by a present or former employee are held valid when they are reasonable and necessary to protect the interests of the employer. For example, a provision in an employment contract which prohibited an employee for two years from calling on any customer of the employer called on by the employee during the last six months of employment would generally be valid. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area.
Guam Self-Employed Independent Contractor Agreement with Sales Representative is a legally binding document that outlines the terms and conditions between a business or individual (referred to as the "Company") and a sales representative (referred to as the "Contractor") who operates as an independent contractor in Guam. This agreement is crucial for establishing a clear understanding of the roles, responsibilities, and obligations of both parties involved. Key terms and provisions included in a typical Guam Self-Employed Independent Contractor Agreement with Sales Representative may include: 1. Parties: Clearly identify the names and contact information of both the Company and the Contractor. 2. Agreement Purpose: State the objective of the agreement, which is to establish a working relationship between the parties for the sale of products or services in Guam. 3. Independent Contractor Status: Clarify that the Contractor is an independent contractor and not an employee of the Company, highlighting the absence of employment benefits, taxes, or legal obligations associated with employment. 4. Territory: Define the specific geographical area in Guam where the Contractor will operate and conduct sales activities. 5. Duties and Responsibilities: Detail the specifics of the Contractor's role, including the products or services they will represent, their sales targets, and any additional responsibilities such as attending trade shows or providing regular reports. 6. Compensation: Clearly define the remuneration structure, which may include a base salary, commission, bonuses, or any other incentives, along with the payment frequency and method. 7. Expenses: Address the reimbursement of reasonable and documented business expenses incurred by the Contractor, such as travel, accommodation, or advertising costs. 8. Non-Competition and Non-Solicitation: Restrict the Contractor from engaging in similar business activities with competitors or soliciting Company clients or employees within a specified period after the termination of the agreement. 9. Confidentiality: Protect the Company's proprietary information and trade secrets by requiring the Contractor to maintain strict confidentiality. 10. Term and Termination: Specify the agreement's duration, any renewal provisions if applicable, and the circumstances under which either party can terminate the agreement, including notice requirements. 11. Governing Law and Jurisdiction: Determine the laws and jurisdiction of Guam that will govern and interpret the agreement in case of any disputes. Different types of Guam Self-Employed Independent Contractor Agreement with Sales Representative may also exist depending on the specific industry or business requirements. These could include variations tailored to real estate agents, medical device sales representatives, pharmaceutical sales representatives, or software sales representatives.Guam Self-Employed Independent Contractor Agreement with Sales Representative is a legally binding document that outlines the terms and conditions between a business or individual (referred to as the "Company") and a sales representative (referred to as the "Contractor") who operates as an independent contractor in Guam. This agreement is crucial for establishing a clear understanding of the roles, responsibilities, and obligations of both parties involved. Key terms and provisions included in a typical Guam Self-Employed Independent Contractor Agreement with Sales Representative may include: 1. Parties: Clearly identify the names and contact information of both the Company and the Contractor. 2. Agreement Purpose: State the objective of the agreement, which is to establish a working relationship between the parties for the sale of products or services in Guam. 3. Independent Contractor Status: Clarify that the Contractor is an independent contractor and not an employee of the Company, highlighting the absence of employment benefits, taxes, or legal obligations associated with employment. 4. Territory: Define the specific geographical area in Guam where the Contractor will operate and conduct sales activities. 5. Duties and Responsibilities: Detail the specifics of the Contractor's role, including the products or services they will represent, their sales targets, and any additional responsibilities such as attending trade shows or providing regular reports. 6. Compensation: Clearly define the remuneration structure, which may include a base salary, commission, bonuses, or any other incentives, along with the payment frequency and method. 7. Expenses: Address the reimbursement of reasonable and documented business expenses incurred by the Contractor, such as travel, accommodation, or advertising costs. 8. Non-Competition and Non-Solicitation: Restrict the Contractor from engaging in similar business activities with competitors or soliciting Company clients or employees within a specified period after the termination of the agreement. 9. Confidentiality: Protect the Company's proprietary information and trade secrets by requiring the Contractor to maintain strict confidentiality. 10. Term and Termination: Specify the agreement's duration, any renewal provisions if applicable, and the circumstances under which either party can terminate the agreement, including notice requirements. 11. Governing Law and Jurisdiction: Determine the laws and jurisdiction of Guam that will govern and interpret the agreement in case of any disputes. Different types of Guam Self-Employed Independent Contractor Agreement with Sales Representative may also exist depending on the specific industry or business requirements. These could include variations tailored to real estate agents, medical device sales representatives, pharmaceutical sales representatives, or software sales representatives.
