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Worker classification on Fiverr Pro

What is worker classification? 

A worker classification audit is a service that Fiverr provides for clients who have worked with freelancers for a longer period of time. Its goal is to reduce the possibility of misclassifying independent contractors, which can result in financial and legal consequences. To ensure compliance with relevant labor laws and regulations, conducting this audit helps clarify the nature of the working relationship between the freelancer and the client.

Worker classification audits only apply to self-employed individuals (freelancers).

 

How it works for clients

The client must have made at least one payment to the seller who is being audited, either for a specific order or for hourly services.

Note: The audit process is handled by our trusted third-party, Greenlight, and not directly by Fiverr. Fiverr is not liable for the outcome of the audit conducted by Greenlight. Greenlight bears sole responsibility and accountability for the audit results. The decision to engage or decline to engage any freelancer remains entirely at the buyer's exclusive discretion.

  1. First-time clients will need to go to the freelancer's profile or inbox, click on the "Ensure this freelancer is compliant with your business" banner, and then select 'Worker classification.'
    For existing clients, click on "Worker classification" located under your freelancer profile, or your inbox.

  2. You will be prompted to answer the worker classification screening questionnaire. This is required to help understand your company’s relationship with your freelancer to avoid potential legal and misclassification issues.

    The questions are as follows:

    • Will your company directly manage the worker and direct day to day tasks?
    • Can the worker substitute another worker in his/her place as long as the assignment requirements are met?
    • Is the worker restricted from working for other clients?
    • Are there employees in your organization who do the same work as this assignment requires?

  3. Make a payment. Whether a payment is required depends on your subscription plan.
    The service is not able to be paid with Fiverr credits. The client will need to pay with one of the available payment method options or from their balance from deposits. Promo codes are also not able to be used when paying for a service.


    Note: Depending on your subscription plan, you may be eligible to receive a 10% discount. Check your Fiverr Pro subscription plan for more information.
  4. Track the audit progress. The process may take up to 16 days; the freelancer will have 14 days to authorize the request, and then up to 2 days for the review.

  5. Once the audit has been completed, you will receive an email notification. 

    Audit statuses:

    • Low risk: The audit indicated that the freelancer is correctly classified as an independent contractor.
    • High risk: The audit indicated that the freelancer could be classified as an employee and poses legal implications for your company.

    Note: On both occasions, you will need to review the report and make decisions based on your requirements.

  • If you decide to change your mind about the worker classification audit, you can request a refund within 24 hours of your initial request. After 24 hours, refunds will not be processed.

Addressing worker classification compliance risks

Ensuring your worker is classified correctly is crucial to avoiding legal and financial risks. If a recent audit reveals compliance concerns with your contractors or freelancers, taking the right steps can help protect your business and stay aligned with your local regulations.

Fiverr Pro now offers worker classification audits. Below, we outline steps to address compliance risks identified during an audit.

  • First, review the findings of your classification audit to identify areas of concern. A clear understanding of these risks is the foundation for effectively addressing them.

  • Working with an employment law professional or HR advisor is key to evaluating your next steps. They can:

    • Guide whether to reclassify contractors as employees.
    • Help you align your worker classification relationships with local laws.
    • Suggest immediate actions to minimize liabilities.
    • Leverage Employer of Record (EOR) services to streamline global hiring and compliance, especially for complex situations like reclassifications.

  • If you plan to continue working with contractors, ensure their contracts reflect compliance with applicable laws and consult with an adequate professional. Adjustments may include:

    • Redefining the scope of their responsibilities.
    • Limiting oversight or control over their day-to-day tasks.
    • Including clauses that clarify the independent nature of the relationship.

  • Once you have received adequate consultation from a professional expert regarding your options. You can put measures in place to prevent future compliance issues:

    • Conduct regular worker classification audits.
    • Implement clear, standardized contract templates for the freelancers you work with.
    • Train your team on the proper management of independent contractors.

    By addressing risks proactively, you can protect your business, build stronger relationships with your worker, and ensure compliance with ever-changing regulations. 

Disclaimer: Please note that Fiverr is not in a position to provide advice about your specific engagement with a freelancer. It’s important to consider your options carefully and consult an expert if needed. Additionally, the decision to engage or decline to engage any freelancer remains entirely at your exclusive discretion.

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