What Factors Determine Worker Classification (Employee vs. Contractor) in Bhutan?

Worker classification is an important part of payroll and HR compliance in Bhutan. Before deciding how to pay a worker, an organization should determine whether the individual is an employee working under a contract of employment or an independent service provider/contractor.

The distinction affects employment documentation, wages, working conditions, leave, benefits, payroll administration, tax handling, and the employer's legal obligations.