Solutions · Convert contractors to employees

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.

Where contractors most often convert through Ubique
PortugalUbique-run
SpainUbique-run
ArgentinaUbique-run
PhilippinesPartner
Why convert

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.

How it works

One afternoon, four steps

The contractor already exists in your dashboard. Conversion reuses what we know and adds what employment requires.

1

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.

2

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.

3

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.

4

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.

What changes for the person

Same job, same manager, different safety net

Before (contractor)After (employee via Ubique)
Invoices you monthly, chases paymentLocal payslip on the statutory payday, tax withheld at source
Arranges own pension, if anyEnrolled in the mandatory pension scheme, employer contribution paid
Unpaid time offStatutory paid annual leave, public holidays, sick pay, parental leave
Private health cover at own costState health cover, plus optional private plan via Ubique's partner brokers
No notice protectionStatutory notice period and severance rules apply
Carries reclassification risk with youRisk 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.”

Inês Ferreira
Senior engineer, converted from contractor to employee via Ubique in Portugal
Cost note. Employment is more expensive than a contract for the same take-home pay. In Portugal, employer social security is 23.75% of gross salary. Ubique's fee is £499 a month on top. Most customers find that the removed risk and the retention are worth it for people they intend to keep.
Start here

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.