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Protecting a business from reclassification: a contract with a contractor in the cleaning industry

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Usifoh Isaac
Lawyer
United Kingdom / England
Usifoh Isaac

i

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Publication date: 30.06.2025

My specialization: Drafting legal documents, contract law, labor law, business compliance, immigration support, and cross-border consulting.

Introduction

This was one of the most important commercial law cases in my practice. A rapidly growing UK-based cleaning company reached out to me for legal support in structuring safe and compliant engagement terms for independent contractors delivering cleaning and maintenance services.The client needed a flexible yet legally sound agreement that would minimise regulatory risks, ensure GDPR compliance, and clearly define the non-employment nature of the working relationship.

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The company needed not only to avoid the risk of worker misclassification, but also to have a practical, reusable agreement suitable for everyday business use.

 

Case Summary

 

My client is a private cleaning company in the UK, providing services to both individuals and businesses. They planned to officially engage self-employed cleaners as contractors, not employees.

The company’s legal team needed to:

  1. maintain flexibility in cooperation,
  2. avoid violations of UK employment law,
  3. protect the business from potential claims by tax and regulatory authorities (including HMRC).

Challenges

  1. Risk of contractor misclassification as an employee, which could lead to tax liabilities and penalties.
  2. Lack of a unified template suitable for daily use with new contractors.
  3. Need for a simple yet legally robust contract that can be tailored for each engagement.
  4. Obligations related to GDPR compliance, as the company collects personal data through third-party platforms.
  5. Requirement to regulate payment terms, safety standards, quality of service, and dispute resolution.

Strategy

 

I proposed to develop a universal independent contractor agreement template that: is written in plain English, includes editable fields for flexibility, clearly allocates responsibility between parties, and ensures non-conflict with UK employment regulations.

The following solutions were implemented:
✔️ Defined that the contractor operates independently, manages their own schedule, and provides their own tools.
✔️ Included clauses on confidentiality, IP, GDPR compliance, dispute resolution, and cancellation policies.
✔️ Introduced mutual indemnity provisions, including liability for third-party claims.
✔️ Added optional sections on subcontracting, service expansion, or temporary exclusivity.
✔️ Standardised the process for engaging contractors via online platforms, including e-signatures.

Result

  • The contract was completed ahead of schedule and fully tailored to the company’s operational model.
  • The company successfully began engaging contractors without legal complications.
  • Risk of misclassification was avoided, as confirmed by internal compliance audit.
  • Clear policies for engagement, payment, and liability were established.
  • The client received a ready-to-use template with guidance for future adaptation.

 

Conclusion

This case demonstrated that even seemingly straightforward agreements require a professional legal approach — especially in the UK, where the line between contractor and employee is thin and legally sensitive.

A well-drafted contract protects not only the business but also the professionals it engages.
Legal clarity in working with self-employed service providers is key to sustainable growth and risk mitigation.

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