The contractor who works like an employee is a risk to both of you
If someone has worked full time for you for two years, uses your tools, follows your hours and has no other clients, most tax authorities will call them an employee. Convert them before an auditor does.
Conversion included in the Employer of Record fee. No separate onboarding charge.
Two reasons, one legal and one human
Misclassification risk
Spain, Portugal, Germany, the Netherlands, California and the UK (through IR35) all run active enforcement. The typical outcome of a reclassification is back-dated employer contributions for several years, penalties, and in some countries personal liability for directors. A contractor can also bring the claim themselves, usually after the relationship ends badly.
Retention
Contractors leave for a pension, paid leave and a mortgage application that goes through. Senior people in particular reach a point where the flexibility stops being worth it. Offering employment is often the difference between keeping them and recruiting their replacement.
Ubique's Contractor Management plan scores each contractor's risk continuously. When a score moves to high, the dashboard suggests a conversion and shows the cost.
Signs an auditor looks for
- Fixed hours and a line manager
- One client for more than 12 months
- Company laptop, email and Slack
- Paid a monthly amount, not per deliverable
- Cannot send a substitute
Ubique Shield
For contractors who should stay contractors, Ubique Shield covers reclassification claims. For the ones who should not, conversion is the fix.
One afternoon, four steps
The contractor already exists in your dashboard. Conversion reuses what we know and adds what employment requires.
Set the terms
Pick a start date and a gross salary. Ubique Calculator converts the contractor's day rate into a salary with equivalent take-home pay, including employer contributions.
Close the contract
We generate a termination of the contractor agreement and a final invoice run, dated the day before employment starts, so there is no gap and no overlap.
Sign the employment contract
A locally compliant contract in the local language and English. Probation is usually waived, because the person has already been working with you.
Enrol and pay
Tax, social security, health and pension enrolment. The first payslip arrives on the next local payday. Equipment and benefits can be added at the same time.
In Ubique-run countries the registration steps complete within two to five business days. Partner-served countries take one to two weeks longer.
Same job, same manager, different safety net
| Before (contractor) | After (employee via Ubique) |
|---|---|
| Invoices you monthly, chases payment | Local payslip on the statutory payday, tax withheld at source |
| Arranges own pension, if any | Enrolled in the mandatory pension scheme, employer contribution paid |
| Unpaid time off | Statutory paid annual leave, public holidays, sick pay, parental leave |
| Private health cover at own cost | State health cover, plus optional private plan via Ubique's partner brokers |
| No notice protection | Statutory notice period and severance rules apply |
| Carries reclassification risk with you | Risk removed. Ubique is the legal employer |
“I was a contractor for two years. Converting to an employee through Ubique took one afternoon, and I finally had a pension and proper leave. My manager did not change. My payslip did.”
Not sure whether a contractor should convert?
The Misclassification Risk Check is a free five-minute questionnaire based on the tests used in the UK, EU and US. It gives you a risk level per contractor and a plain-English explanation. No account needed.
Convert the people you cannot afford to lose
Bring a list of contractors. We will show you the risk and the cost for each one.