The rise of intermediaries: useful, but watch out for risks

Intermediaries who connect freelancers with clients offer advantages, but the legal form determines the risks: in a mediation agreement, the intermediary merely brings parties together, whereas in an intervention agreement, the intermediary is personally involved and can be held liable. The latter form, in particular, resembles a temporary employment arrangement, with the risk that an employment relationship may be assumed. Well-drafted agreements are therefore crucial. Below, you will find the distinction and points to consider.

What does an intermediary do?

More and more clients are working with self-employed professionals, and at the same time, the number of intermediaries positioned between clients and self-employed professionals is growing. They offer benefits for both parties but also entail risks. Good agreements are essential to prevent problems.

The benefits of an intermediary

• Matchmaker: the intermediary knows both parties and makes the right match based on knowledge and experience;
• Buffer: he takes communication, administration, and sometimes complaint handling off your hands, so that the client and freelancer can focus on the project;
• Risk allocation: the intermediary can ensure a better distribution of risks and liability.

Mediation agreement or agreement of intervention?

An intermediary can offer its services in two ways, and the distinction is important.

Mediation Agreement

In a mediation agreement, the intermediary brings the client and the self-employed professional into contact with each other and plays no further role in the execution. A multi-party agreement is drawn up, or multiple agreements: a contract for services between the client and the self-employed professional, and a mediation agreement between the client and the intermediary. The self-employed professional is directly connected to the client; the mediator is not involved in the execution.

Intermediation agreement

In an intermediation agreement, the intermediary does act as a go-between: he accepts the assignment and has it carried out by a self-employed professional. He concludes an agreement with both the client and the self-employed professional; the self-employed professional has no direct agreement with the client. In this case, the intermediary is involved in the execution and can therefore also be held liable for errors or defects.

Note: intermediary or employer?

Caution is advised, particularly in the case of an intermediation agreement. This structure closely resembles a temporary employment arrangement, which could lead to a judgment that an employment relationship exists. If the intermediary is classified as an employer, this has far-reaching consequences, for example regarding social security contributions. The determining factors are the actual execution, the agreements made, and the contracts used. TODO_VERIFY: the assessment of employment versus self-employment (false self-employment) is evolving — have your structure reviewed.

Frequently Asked Questions

What is the difference between mediation and intervention?

In mediation, the intermediary merely brings parties together, and the self-employed professional is in direct contact with the client. In intervention, the intermediary contracts directly with both parties and is involved in the execution — entailing a higher risk of liability.

Can an intermediary be classified as an employer?

Yes, especially in the case of an intermediation agreement that resembles a temporary employment arrangement. This has major consequences, for example regarding social security contributions. The actual implementation is decisive.

Who is liable for errors made by the self-employed professional?

In the case of mediation, the intermediary is generally not liable, as they are not involved in the execution. In the case of intervention, however, the intermediary can be held liable.

Why are good agreements so important?

They clarify the relationships and responsibilities between client, intermediary, and self-employed professional, prevent disputes, and limit the risk of an unwanted employment relationship.

Working with intermediaries? Have your contracts drafted

The right agreement prevents ambiguity and limits risks, especially regarding liability and bogus self-employment. We draft suitable agreements and advise you on the best form.

Our employment and corporate law are happy to assist you. Schedule a no-obligation intake consultation.