Economically dependent self-employed worker (TRADE): What is it?
In the complex web of labour and business legislation, the figure of the economically dependent self-employed worker, commonly known as TRADE, emerges as a concept of particular relevance and growing interest.
With the aim of offering clarity and guidance on this subject, in this extensive presentation we will deal exhaustively with its foundations, characteristics, requirements and resolve the most common questions it raises.
What is an economically dependent worker?
An economically dependent self-employed worker is defined as a self-employed professional who, in the course of his work, has a business relationship with a main client from whom he obtains at least 75% of his income.
This contractual relationship must be formalised by means of a written agreement stipulating the services to be provided, the agreed financial compensation and the duration of the contract, the latter being crucial, since if it is not specified, it is presumed to be indefinite.
In any case, it must comply with the legal requirements. These requirements are included in Royal Decree 197/2009 of 23 February.
Characteristics of the economically dependent self-employed worker
Among the distinctive characteristics of this type of worker, we highlight the following:
Autonomy in work organisation
The economically dependent self-employed worker has autonomy in the organisation of his/her work activity. This implies that they have the capacity to establish their own timetables, working methods and processes, without direct intervention by the client.
Absence of subordination
A fundamental characteristic of this type of worker is the absence of subordination to the client. Unlike an employee, the TRADE is not subject to direct orders or constant supervision by the client in the performance of their duties.
Exclusivity in the commercial relationship
The economically dependent self-employed worker has an exclusive business relationship with his main client in terms of income. This means that the majority of their income comes from a single client, which may imply a higher degree of economic dependence.
Independence with legal and fiscal obligations
Despite their relative autonomy, TRADE is subject to legal and tax obligations similar to those of any other self-employed worker. This includes the payment of the self-employed contribution, quarterly tax filing and compliance with the provisions set out in the contract signed with the client.
Types of economically self-employed workers
We can classify the types of TRADE into 2 groups:
1. According to the sector of activity
Economically dependent self-employed workers can be classified according to the sector in which they carry out their activity.
This classification can include professionals from different fields, such as the service sector, industry, commerce, among others.
2. According to the type of business relationship
Another way of classifying the economically dependent self-employed is according to the type of business relationship they have with their clients.
Some may have an exclusive relationship with a single client, while others may work with several clients, although most of their income comes from one main client.
Requirements to be considered TRADE
In order for a worker to be recognised as an economically dependent self-employed worker, he/she must meet a series of requirements established by current labour legislation.
These requirements include the formalisation of a written contract with the main client, the non-existence of subordinate employment ties with said client, and the availability of own resources to carry out the work activity without depending on the means provided by the client.
Frequently asked questions TRADE
In order to provide a comprehensive understanding of the subject, it is pertinent to address some of the most frequently asked questions that often arise in relation to the economically dependent self-employed:
Is TRADE the same as bogus self-employment?
No, TRADE and bogus self-employed are distinct concepts characterised by fundamental differences in nature and scope.
While the TRADE has a legitimate contractual relationship with a main client, from whom it obtains the majority of its income, the bogus self-employed performs work that, in terms of hours, working hours and obligations, resembles that of an employee, but assumes the obligations of a self-employed person.
Is a TRADE the same as a collaborating self-employed person?
The collaborating freelancer differs from the TRADE in that it is a self-employed professional who collaborates with a family member in the development of a business activity.
Although they share the status of self-employed, the characteristics and obligations of each figure are different.
For example, the collaborating self-employed person is usually exempt from paying the self-employed quota and is not obliged to file quarterly returns.
Is there severance pay for a self-employed worker who is economically dependent?
Although there is no severance pay in the traditional sense for the economically dependent self-employed worker, in the event of breach or termination of the contract, damages may apply, the amount of which will be determined according to various factors, such as the time remaining on the contract and the seriousness of the breach.
Are there any bonuses or benefits for the TRADE?
In addition to the benefits inherent to their status, such as rest days and the right to compensation for non-fulfilment, the economically dependent self-employed worker can access additional benefits, such as the termination benefit, as long as they meet the established requirements. They may also benefit from reductions in their personal income tax return and other tax incentives, depending on their particular situation.
Asesoría Orihuela Costa: personalised advice for TRADE
In conclusion, the economically dependent self-employed worker represents a relevant figure in the contemporary employment landscape, characterised by relative autonomy and economic dependence on a main client. Through a clear understanding of its fundamentals, characteristics and requirements, professionals can make informed decisions and make the most of the opportunities offered by this modality of work.
Do you need personalised advice for your specific situation as a TRADE?
At Asesoría Laboral Orihuela Costa, we are committed to providing you with the guidance and solutions you need to successfully manage your activity as an economically dependent self-employed worker.
Contact us and find out how we can help you to optimise your work performance and comply with your legal and fiscal obligations efficiently.
Don’t wait any longer to take the next step towards success in your career as a TRADE!
