Paying the Contractor for Services Provided
Even when terminating a relationship with an independent contractor, you must pay the contractor for all services or products delivered, regardless of whether you are satisfied with the work. If you have a dispute with a contractor about payment, it is wise to consult with an attorney to determine termination details and necessary payments.
Consequences of Wrongfully Terminating an Independent Contractor
If you terminate an independent contractor in violation of the agreement, the contractor has the right to file a lawsuit against the business. Depending on the circumstances, you may be liable for:
Lost wages – You may be required to cover actual wage uk phone data losses from the date of wrongful termination. You may also be on the hook for the independent contractor’s future wages if the agreement specifies the project’s duration.
Legal fees – If the lawsuit is successful, you must cover the contractor’s attorneys’ fees and court costs.
Beyond paying for the legal damages, you also risk damage to your reputation in the marketplace. Ultimately, it is best to adhere to the terms of the contract, ensure that it includes termination provisions, and compensate the independent contractor for all services rendered.
You may have grounds for a lawsuit if you were wrongfully terminated as an independent contractor. But you must have evidence that supports your claim. In addition to the written work agreement, it is wise to document what the employer said to you regarding your performance before you were fired. It may also be helpful to compile performance reviews, if available, showing that you met your performance goals.
The Takeaway
Independent contractors cannot be fired at will. A written work agreement between an independent contractor should spell out the performance expectations of the contractor and grounds for termination. In the event of disputes, it is wise to consult with an experienced employment litigation attorney.