What’s the difference between remote work and contract work?
We are often asked how remote work is different from contract work.
We have decided to set the record straight and describe the difference.
Let’s start with the legal aspect.
Employees who work remotely are part of the staff, and they need to be in the employer’s office to sign all documents. Contractors sign an agreement with the company as individual entrepreneurs, all documents are signed remotely, and these employees are NOT part of the staff.
Remote workers may work from any city in the Republic of Belarus, while contractors may work from various countries – Russia, Poland, Ukraine, Moldova etc.
The benefits package includes: medical insurance, paid vacation, paid sick leave, paid sick days, teambuilding activities, and New Year’s gifts from the company.
Under a Contractor Agreement, the benefits package is virtually non-existent, except for the New Year’s presents. As a rule, employees willing to work as individual entrepreneurs/on a B2B basis calculate their own social costs and include them in their rates.
Salary for remote workers is transferred to the employee’s bank card once per month based on the National Bank’s exchange rates. If necessary, an advance can be requested.
For contractors, the salary is transferred once a month based on the National Bank’s exchange rates. However, the salary is transferred not to their card, but their individual entrepreneur’s account.
For remote workers, the company pays 14% in taxes (income tax + payment to the Social Security Fund). Contractors pay their taxes themselves.
Remote work is suitable for employees with 1-2 years of production experience. They value professional and career growth, clearly defined processes, as well as the opportunity to act as mentor/curator/manager. This category includes Middle, Middle+, Senior developers, QA, BA, PM with 2 years of experience and up, and an English level of А2/B1.
Work under a Contractor Agreement is suitable for self-reliant mature engineers (Senior+ developers and testers with 4+ years of commercial projects, and an English level of at least В1) who can work with vaguely defined requirements, clarify them independently, take responsibility for their decisions, and defend them. They are able to devote as much time as possible to coding as they manage their work hours themselves and they have no “extracurricular activities”.
Remote work includes a 90-day trial period and an onboarding program. The Contractor Agreement, however, does not envision such activities.
The differences are clear, but what about the common elements?
In both cases the company offers official employment and work in clients’ dedicated teams where one can both develop their hard skills and practice their English.
The differences between remote work and contract work are significant. But everybody can find pros and cons in either option. The main rule to keep in mind is “more freedom means higher responsibility”.