Worker Classification Tool

Omnivoo's Worker Classification Tool helps you assess whether your employment arrangements are compliant under the laws of each country where you hire. Correct classification is essential -- getting it wrong can lead to serious legal and financial consequences.

Why Classification Matters

Worker misclassification is one of the most common compliance risks for companies hiring internationally. The consequences can be severe:

• Back taxes and penalties -- Governments can require you to pay unpaid employer taxes, social contributions, and penalties going back several years.
• Lawsuits from workers -- Misclassified workers can sue for employment benefits they were denied (health insurance, paid leave, severance).
• Criminal liability -- In some jurisdictions, willful misclassification can result in criminal charges.
• Reputational damage -- Publicized misclassification cases can harm your ability to attract talent.

warning

Misclassification risk increases when employment arrangements do not align with local labor law definitions. Run a classification assessment periodically to ensure compliance.

How the Tool Works

The Worker Classification Tool uses a guided 3-step wizard to assess the working relationship and provide a recommendation based on the worker's country of residence.

Step 1: Select Country

1. From the Compliance Hub, click Worker Classification in the quick actions.
2. Select the country where the worker is based.
3. Review the country overview, which highlights key classification criteria used in that jurisdiction.

Different countries use different tests for classification. The tool automatically applies the correct legal framework for the selected country.

Step 2: Answer Assessment Questions

You will be presented with a series of yes/no questions across three categories:

Behavioral control -- Does the company control how and when the work is done?

• Do you set the worker's schedule?
• Do you provide specific instructions on how to complete tasks?
• Do you require the worker to attend regular meetings?
• Do you evaluate the worker's methods (not just results)?

Financial control -- Does the company control the financial aspects of the work?

• Does the worker use company-provided equipment or tools?
• Is the worker paid a fixed salary rather than per project?
• Does the worker have the opportunity for profit or loss?
• Does the company reimburse the worker's business expenses?

Relationship factors -- What is the nature of the ongoing relationship?

• Is the relationship ongoing/indefinite rather than project-based?
• Does the worker receive benefits (insurance, paid time off)?
• Is the work performed a core part of the company's business?
• Does the worker provide services exclusively to your company?

tip

Answer each question honestly based on the actual working relationship, not how the contract is written. Courts and tax authorities look at the reality of the arrangement, not the paperwork.

Step 3: Review Results

After completing the assessment, the tool generates a detailed results page with the following:

Recommendation -- The tool provides a classification recommendation based on local employment law, indicating whether the arrangement is consistent with an employment relationship and any areas of concern.

Risk Score (0-100%) -- A numerical score indicating the likelihood of misclassification risk. Higher scores mean greater risk.

Risk Score	Meaning
0-25%	Low risk -- Classification is likely correct
26-50%	Moderate risk -- Some indicators warrant attention
51-75%	High risk -- Significant misclassification indicators present
76-100%	Critical risk -- Strong evidence of misclassification

Confidence Score -- How confident the tool is in its recommendation, based on the consistency of your answers and the clarity of the country's classification rules.

Country-Specific Notes -- Guidance specific to the selected country's legal framework, including relevant court cases, regulatory guidance, or common pitfalls.

Risk Factors -- A list of the specific answers that contributed to a higher risk score, so you know which aspects of the relationship to address.

When to Reassess

Worker classification is not a one-time determination. You should re-run the assessment when:

• The scope of work changes significantly
• You start providing tools, equipment, or office space to the worker
• The worker's schedule becomes fixed or company-directed
• Laws change in the worker's country (you will receive a compliance alert when this happens)
• At least once per year as a best practice

Re-running the assessment takes only a few minutes and can protect you from escalating risk.