<aside> đź’ˇ Outlining the options how working with Bonnet might look like. For any questions, please check with Eltje.

Last edited: July 2023

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UK employment contract

We usually hire people on the ground in the UK. So everyone in the UK will be employed directly with Bonnet Ltd and will be on UK payroll via Pento - any taxes, pension payments and other (taxable) benefits will be deducted from your gross pay automatically.

For all other details, please check your employment contract.

Freelance contract

A freelancer is a self-employed individual who works for clients as their own boss.

Freelancers and independent contractors are responsible for their own tax contributions and are not eligible for company benefits such as health insurance contributions or sick pay. Please make sure you talk to a tax adviser or local solicitor to understand the exact impact as we won’t be able to give you (tax) advise). Generally, in most places, the trade off for freelancers is a lower tax burden combined with more flexible working hours, in a destination of your choice.

We use this for everyone outside of the UK where an EOR set up isn’t necessary based on their employment law. You’ll have to invoice us on a monthly basis for the days worked, and you can expect payment on the last working day of each month. We usually set the notice period to 30 days, in line with the UK employment contract conditions.

Employer of Record

We use Deel to set up an Employer of Record contract whenever there’s a high legal risk around [disguised employment](https://www.deel.com/glossary/disguised-employment#:~:text=Disguised employment refers to a,an employer-employee relationship exists.) (e.g. Germany, France)

An employer of record (EOR) is an organisation that acts as the legal employer for their clients’ foreign employees. The EOR is the middleman that assumes all legal responsibilities regarding employment (contracts, salaries, benefits, taxes) and ensures that their clients can hire from different countries in full compliance with local employment laws.

Setting up an Employer of Record contract is complex, lengthy and expensive, so we try to limit our use to those countries where it is necessary.