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.
Puerto Rico Self-Employed Independent Contractor Agreement with Sales Representative is a legal document that outlines the terms and conditions between a self-employed individual and a company or individual in Puerto Rico engaging their sales services. This agreement serves to establish a professional relationship, define responsibilities, protect the interests of both parties, and ensure compliance with applicable laws and regulations. This type of agreement typically includes the following key elements: 1. Parties Involved: The agreement begins with the identification of the contracting parties, including their legal names, addresses, and contact details. 2. Scope of Work: The agreement specifies the nature of the sales services that the sales representative will provide, whether it's selling products, promoting services, or securing new clients. 3. Contract Duration: The agreement defines the start and end dates of the contract, or establishes it as an ongoing arrangement until either party provides notice for termination. 4. Commission Structure: The commission structure outlines how the sales representative will be compensated for their efforts. This section may detail the percentage of commission earned for each sale, whether it's based on net or gross sales, and the frequency of commission payments. 5. Sales Targets and Performance Expectations: Some agreements may establish specific sales targets or performance expectations that the sales representative must meet to receive the full commission or other incentives. 6. Territory and Exclusivity: If applicable, the agreement may define the specific geographical territory in which the sales representative will operate, as well as any exclusivity rights or restrictions. 7. Confidentiality and Non-Disclosure: This section highlights the sales representative's obligation to maintain the confidentiality of sensitive information belonging to the company, including customer data, trade secrets, and proprietary information. 8. Intellectual Property: Any intellectual property rights, such as trademarks, copyrights, or patents, that are relevant to the sales representative's activities should be addressed in this section. 9. Independent Contractor Status: The agreement clarifies that the sales representative is an independent contractor and not an employee. As an independent contractor, they are responsible for their own taxes, insurance, and other statutory obligations. 10. Termination Clause: This clause explains the circumstances under which either party may terminate the agreement, such as breach of contract, non-performance, or mutual agreement. Other potential types of Puerto Rico Self-Employed Independent Contractor Agreements with Sales Representatives could include agreements specific to different industries or sales roles, such as real estate sales representatives, pharmaceutical sales representatives, or software sales representatives. Each of these agreements may have industry-specific terms, conditions, and provisions tailored to their unique requirements.
