By Rose A. Haché, Esq., CTIE, Attorney at Law Specializing in Travel Industry Law
With more people entering the travel agency sector – and many of them as independent contractors (ICs) – the role of the host agency takes on an even more important role than in the past. In Five, Rose Hache, CTIE and member of The Travel Institute’s Professional Educators Program, shares five best practices for host agencies to follow with their ICs.
Think of the IC as a micro travel agency, or travel account. Understand your contract is a “business to business” contractual relationship.
1. It is a “Best Practice” for the Host’s affiliation policy to solely engage with incorporated or LLC independent contractor entities. It is an extra layer of liability protection for the independent contractor in the event a trip goes awry. For the Host, a company does not “employ” a corporation or an LLC.
2. For those agencies with individual independent contractors, ask for proof the DBA was filed, and issue payment to the DBA name, not the individual’s name. Report commissions to the EIN#, not the Social Security number.
3. Payment for worker’s compensation insurance coverage is the sole obligation of the IC.
4. Each IC pays for their own business cards.
5. The IC’s business cards and email signature include: “An independently owned and operated business.”
