Distinguishing between employees and independent contractors is crucial, as misclassifying workers as contractors to avoid entitlements is illegal. Employees typically work set hours, have limited control over their work, and receive wages; while contractors work independently, set their own hours, and complete specific projects. Ongoing contracts can blur the lines, so seeking professional advice is vital to avoid legal issues. Remember, employee rights are protected by law, so ensure proper classification to stay compliant.
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