Bogus self-employment: legal risks if you only have one client

A bogus freelancer is someone who appears to work on their own account but in practice has a disguised employment relationship with their client. It is an illegal situation that can have serious consequences for both parties.

When are you a bogus freelancer?

• The company sets your hours and working day.
• You work on the company's premises with its equipment.
• You have no other clients.
• The company assigns your holidays.
• You bear no business risk.

What is a TRADE?

An Economically Dependent Self-Employed Worker (TRADE) is someone who invoices more than 75% to a single client, but with their own organisation. It is legal, but requires a registered TRADE contract.

Consequences

The Labour Inspectorate can force the company to register you as an employee with retroactive contributions + penalties of up to €10,000. At DPL Asesores we assess your situation.