Startup Employment and Advisor Models
Start-ups and fast-growing companies often build their teams beyond full-time employment contracts: part-time staff, freelance developers, advisers abroad, early team members working for equity. We set up these flexible models with their employment, social security and intellectual property risks in mind, and prepare the contracts.
What is the difference between a contractor and an employee?
Whether a relationship with an individual is an employment contract or freelance work (a service or work contract) is determined by what actually happens, not by the title of the contract. If the person works on the employer’s instructions, at set hours, within the employer’s organisation and for regular pay, they may be treated as an employee even if the contract calls them an “adviser”.
In that case, retrospective social security contributions, severance and notice pay, overtime and annual leave claims may arise. Structuring flexible models correctly from the start therefore prevents significant costs later.
Who owns software produced by a freelancer?
Under the Law on Intellectual and Artistic Works, the economic rights in works created by an employee in the course of their work belong to the employer unless otherwise agreed. There is no such rule for freelancers: the rights remain with the person who created the work unless they are assigned by a written contract that lists the rights assigned one by one. This is one of the gaps most often found in due diligence for funding rounds.
Scope
- Setting up flexible employment, adviser and contractor models for start-ups and scale-ups
- Preparing consultancy, freelance and intellectual property assignment agreements
- Assessing part-time, remote and cross-border working models
- Reviewing existing relationships for employment law risk
How We Work
- Identifying the structure of the team and how each relationship works in practice
- Characterising each relationship correctly as employment, consultancy or freelance work
- Preparing suitable contract models and intellectual property assignment provisions
- Assessing, together with specialists, the tax and social security aspects for people working from abroad
- Remedying past gaps, especially missing intellectual property assignments
Team
Frequently Asked Questions
Can we give early team members equity instead of a salary?
If the person actually works as an employee, minimum wage and social security obligations do not disappear because shares are given. Equity should be structured as an incentive in addition to, not instead of, pay. If the person contributes to the company as a shareholder, that relationship should be set out separately in the shareholders' agreement.
How can we work with a developer living abroad?
Usually through a service contract under which the person invoices from their own country, or through an intermediary company providing employment services in that country. In both models, intellectual property assignment and confidentiality provisions should be included separately in the contract, and the employment and tax rules of that country should also be taken into account.
What should a contract with a freelancer cover?
The description of the work and delivery terms, fees and invoicing, assignment of intellectual property rights, confidentiality, non-compete and termination should be set out clearly. Provisions resembling an employment relationship, such as instructions, working hours and being tied to the workplace, should be avoided.
Are there additional rules for our company in a technopark?
Staff working in technology development zones and R&D centres benefit from tax and social security incentives; to qualify, the way and place in which staff work are subject to certain conditions. These conditions should also be taken into account when setting up flexible working models.
Would you like to discuss this service? Schedule a meeting with us — the first meeting is free of charge.
Schedule a meeting