[ksahin]

In my understanding, it's not that it's illegal to hire a person as a contractor, it's just that it can be re-qualified by a judge as an employee, if some working conditions are met.

For example in France, which is known for its labor code that protects employees much better than other countries, here are some conditions that can lead to this: - Proven relationship of subordination - The contractor is only working for your company - Poorly written contract (specifically, obligation of means vs obligation of results)

[jalapenos]

Sham contracting is indeed illegal in the criminal sense in some countries. Either outright, or by consequences like failure to withhold tax according to law, or otherwise evading the burdens of employment law, if the facts indicate that was your intent.