Transition from employment to B2B - what can go wrong?

A B2B contract allows for the absence of social benefits, although it does not exclude them. No one is stopping you from negotiating paid leave days. Also, the conditions for terminating the contract can be formulated more favorably for you, for example, with a provision guaranteeing you orders during the notice period. Remember that contracts are made for bad times. No one reads it when things are going well. So think about what you are afraid of and demand the addition of appropriate provisions to the contract. The biggest risks I see in self-employment, which an employment contract mitigates to a significant extent, are a long and serious illness, such as cancer. As a self-employed person, you are subject to social insurance, and the amount of this insurance depends on you - there is a minimum that you must pay, but no one prohibits you from increasing these contributions. You will receive a potential disability pension depending on the amount of contributions you pay, so that is not where I see the danger. The problem will arise if, due to illness or accident, you are unable to regularly provide services. An employee with a contract who appears at the company for a month and then goes on sick leave will be an organizational nuisance for the employer, but if they work well, the employer will not have grounds to dismiss them. In the case of B2B, I believe that after the second sick leave, you would receive a notice of termination. The second risk is potential liability for losses. As an employee, you are financially liable up to 3 times your salary. As a contractor - according to the provisions in the contract - potentially with all of your assets. And there is also the issue of occupational health and safety and a potential workplace accident. In the case of an employment contract (but also a contract for services), the employer is responsible for ensuring your safety. In the case of B2B, these issues can be shifted onto you.

Hi. I have been self-employed for about 12 years. Initially, I was employed full-time, but the boss decided that I cost him too much (the rest of the team as well), so he came up with an idea for us to start a business. The good thing was that he added VAT (for those who wanted to be on VAT), social security contributions (ZUS), and income tax to our net invoice (i.e., what we actually earned). It was beneficial for him because he could deduct the entire invoice as a cost, so he got a lot back. It was also fine for us because we had paid social security and taxes, and we could deduct some expenses from our taxes if we incurred any. The downside was when someone had an accident and was unable to work for some time. The compensation from ZUS was meager, and the boss was not eager to help us either. So we had to count on ourselves. But it's a matter of the boss's approach and how we can negotiate with him. The second downside is that the ZUS contribution I receive is minimal, so if someone is counting on a good state pension, they will most likely be disappointed (I don't count on it, so it doesn't bother me).

Transition from employment to self-employment (B2B) - what can go wrong? Transitioning from employment to self-employment can involve certain challenges and potential difficulties. Although there are various benefits associated with self-employment, there are also many factors that can negatively impact this change. One of the main problems that one can encounter is a lack of financial stability. While working as an employee, one has the certainty of a regular salary, whereas as a self-employed individual, there may be larger variations in income. This can make it difficult to plan a monthly budget and can lead to improper or unreliable bookkeeping, which can cause problems with tax authorities. Another difficulty can be the responsibility for one's own health and social insurance. By transitioning from employment to self-employment, the individual becomes responsible for paying health and social insurance contributions, which can result in higher costs. Moreover, self-employment requires self-discipline and the ability to manage one's own work hours. The lack of supervision from an employer and the inability to control one's own productivity can lead to a decrease in work efficiency and a deterioration of the work-life balance. In summary, transitioning from employment to self-employment can bring benefits for both the employer and the employee, but it also comes with certain risks and difficulties. It is important to approach and prepare for such a change thoughtfully in order to avoid unpleasant consequences.