Document background
The Independent Contractor Offer Letter is a crucial document used when a company wishes to engage the services of an external service provider on a contractor basis in South Africa. It serves as the initial formal communication and contractual framework, clearly establishing the nature of the relationship as that of an independent contractor rather than an employee. This distinction is particularly important under South African labour law, which has specific tests and criteria for determining genuine independent contractor status. The document typically precedes or may serve as a simpler alternative to a full Independent Contractor Agreement, particularly for shorter-term or less complex engagements. It should include essential terms such as scope of work, compensation, duration, and key conditions while maintaining compliance with relevant South African legislation including tax laws and labour regulations.
