Contractor Management is a new way to hire and manage contractors through Remote People. Unlike our existing Contractor of Record (COR) model, where Remote People sits between the client and the contractor as the contracting party, with Contractor Management, the contract is directly between the client and the contractor.
Remote People's role shifts from contracting party to enabler: we provide the contract, the platform, and the payment infrastructure, but we are not a party to the agreement itself.
This gives clients more flexibility in how they structure the relationship, while still getting a compliant, structured process and a single platform to manage the contract, invoicing, and payment.
Contractor Management vs. Contractor of Record
| Contractor Management | Contractor of Record (COR) |
Who's the contract between | Client and contractor, directly | Remote People and the contractor |
Remote People's role | Enables and facilitates the relationship (contract, invoicing, payments) | Is the contracting party; manages compliance and payments on both sides |
Money flow | Money flows directly from client to the contractor; Remote People automatically facilitates this transfer via compliant payment rails, with no extra effort required on your part | Flows through Remote People, who then pays the contractor |
Invoicing | Two separate invoices: one for the contractor payout, one for Remote People’s service fee ($19 per payout) | Consolidated through Remote People |
If a client wants Remote People to remain the formal contracting party and handle the full relationship end-to-end, COR is still the right model. Contractor Management is for clients who want a direct relationship with the contractor with Remote People providing the contract, tools, and payment rails.
Setting Up the Contract
Contractor Management has its own dedicated flow in the product for setting up the agreement between the client and the contractor.
The contract is generated directly between the client and the contractor (not between Remote People and the contractor).
It uses a different set of fields than a COR contract, reflecting that it's a direct agreement rather than one where Remote People is a party.
Template only for now: we currently offer a preset contract template. Clients and contractors will see the standard DC template when setting up the agreement. Custom contract support is planned for a future release.
KYC/KYB verification: Know Your Customer (KYC) and Know Your Business (KYB) verification is currently handled manually by our specialists who review all documentation. Automated KYC/KYB options are in development.
Identifying Contractor Management Contractors in Billing
Under Billing → Contractors, Contractor Management contractors are tagged so clients can easily tell them apart from COR contractors at a glance.
Invoicing: Two Invoices, Not One
Because the contractor is paid directly rather than through Remote People, a Contractor Management payment always produces two separate invoices:
Contractor payout invoice: the amount owed to the contractor for their services.
Service fee invoice: Remote People’s platform fee — $19 per payout.
This is different from the COR model, where everything is consolidated into a single Remote People invoice. With Contractor Management, the money for the contractor's payout and the money for our service fee are tracked and paid separately, since funds flow directly to the contractor rather than through Remote People.
Currency, FX, and the FX Buffer
Service fees are always in USD and will display in USD in the product, regardless of the contractor's local currency.
Contractors are paid in their local currency, converted from the client's payment at the exchange rate locked in at the time of payment.
On the payment screen, clients will see a line item called FX Buffer. This is a small additional amount collected on top of the invoiced amounts to cover exchange rate movement between when the payment is authorized and when it actually settles (typically 1–3 business days later) — so the contractor always receives exactly what they invoiced, in their own currency, even if rates shift in the meantime. Any unused portion of the FX Buffer is automatically transferred back to your client wallet.
Payment methods: Currently, only Direct Debit (DD) is supported for Contractor Management payments and wallet top-ups. Direct Debit transactions typically complete within 48 hours.
Client wallet: Clients have access to an internal wallet account from which payments are executed. Future FX buffers are charged from the wallet first; any remaining balance is debited directly from the client's account.
Regional availability: Contractor Management is not currently available for contractors located in India or China.
Frequently Asked Questions
What currency do I pay in as a client?
You authorize payment from your bank account, and the total includes the contractor's payout (converted to USD for the debit), Remote People's service fee (in USD), and the FX Buffer. The contractor still receives their payout in their own local currency.
What currency is the contractor paid in?
The contractor is paid in the currency specified on their invoice/agreement — their local currency, not USD (unless their local currency is USD).
What currency is Remote People's service fee charged in?
Always USD, and it will always display in USD in the product.
What is the FX Buffer, and why am I being charged it?
It's a small buffer added to your payment to protect against exchange rate fluctuations between the time you authorize payment and when it settles a few days later. It ensures the contractor receives the full amount they invoiced in their local currency, even if rates move. Unused buffer amounts don't just disappear — a self-service wallet to track and reuse that balance is coming soon; it isn't live yet.
Will I get a refund if the exchange rate doesn't move as much as the buffer covers?
Yes, the unused portion is automatically transferred back to your client wallet, where you can use it for future payments.
Who handles taxes on the contractor's payout?
Because the contract is directly between you and the contractor (not with Remote People as an intermediary party), tax treatment follows the terms of that direct agreement. Remote People facilitates the contract and payment but is not a party to it, so please confirm tax handling and withholding responsibilities with your own compliance/tax advisor based on the contractor's location and your agreement.
Can I customize the contract terms?
Currently, Remote People provides a standardized contract template for all Contractor Management agreements. Custom contracts cannot be uploaded, and modifications to the template are not supported. Future iterations will support custom contracts.
How do I tell which of my contractors are Contractor Management vs. Contractor of Record?
Go to Billing → Contractors — Contractor Management contractors are tagged there so you can identify them easily.
Why do I see two invoices instead of one?
Because payment goes directly to the contractor rather than through Remote People, we separate the contractor's payout invoice from Remote People's service fee invoice, so each amount is tracked distinctly.
What payment methods are supported?
Currently, only Direct Debit (DD) is supported for Contractor Management payments and wallet top-ups. Direct Debit transactions typically complete within 48 hours.
Can I raise ad-hoc invoices?
Yes, ad-hoc invoices can be issued, and payments are processed as soon as we receive them.
Is Contractor Management available for all countries?
Contractor Management is not currently available for contractors located in India or China.