How to Fire an Independent Contractor

by Contributor; Updated September 26, 2017

How to Fire an Independent Contractor. Independent contractors work for you just like an employee, don't they? Of course, that is without benefits, and they are only responsible for the job they were hired to do. Therefore, when your satisfaction with their work wanes, you must fire them. There are a few things you need to remember, though, in the process of firing an independent contractor.

Step 1

Know your state's HR rules and regulations, particularly as they pertain to the IRS and breach of contract. If the contractor is in breach of contract, that's your reason for firing them.

Step 2

Read over the contract you signed when hiring the independent contractor in order to see what it spells out. Be prepared to prove the breach of contract or inappropriate work skills charge.

Step 3

Note the expected completion dates and details of the project you have outsourced. Show whether the contractor has met your expectations.

Step 4

Understand that it is against the law, in most cases, to fire independent contractors simply because your business is running slower than expected during the contract period.

Step 5

Sum it up by understanding that you have to have a good reason to end the contract. That reason will usually be that they are not doing a good job.

Tips

  • As protection for you, try to have a paragraph added to the usual contract to show you can fire an independent contractor if they do not live up to your work expectations.

Warnings

  • Don't assume that the same rules apply for independent contractor that pertain to employees.