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The law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.
In fact, by definition, 2026 an independent contractor is an agent in the broad sense of the term in undertaking, at the request of another, to do something for the other. As a general rule the line of demarcation between an independent contractor and a servant is not clearly drawn.1.
How do I create an Independent Contractor Agreement?State the location.Describe the type of service required.Provide the contractor's and client's details.Outline compensation details.State the agreement's terms.Include any additional clauses.State the signing details.
A sales agent is an independent contractor. They earn a percentage of what they sell or a commission based on sales. It is in the best interest of the sales agent to get the highest amount possible because the sales agent's pay is directly related to how much they sell for the client.
The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (LRA) the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA), apply to employees and not independent contractors.
Agents and independent contractors sell products or provide services within different legal boundaries. Agents are employees, while independent contractors are self-employed; this difference affects how services are performed.
A 1099 sales rep agreement is important to have for companies that employ sales representatives. It can be the difference between staying open and being forced to shut down the company. Employees who only get commissions are called 1099ers due to the 1099-MISC form that they receive every year.
Often Independent Contractors are completely unaware that they are not Employees as defined in South African labour legislation and therefore unprotected by labour legislation.
Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment.
A salesperson is an individual engaged in the selling of merchandise or services. The salesperson can be a common law employee, an independent contractor, an employee by specific statute, or an excluded employee by specific statute.