What are 1099 Employees: All you need to know

In the last few years, part-time work in the UAE is more common than you may think. Due to the rising economy of the region, the government is making changes to protect every type of worker. Therefore, having their interests lawfully protected is now a reality for 1099 employees or freelancers.

In this article, you will learn everything you need to know about 1099 employees. Independent employees usually have different benefits and rights than any other temporary worker. Subsequently, learning about the characteristics of these independent workers will help you differentiate them from regular employees. Let us take a look here:

  1. What are 1099 employees?
  2. Benefits of being a 1099 employee
  3. Who can work as a 1099 employee?
  4. Advantages of hiring 1099 employees
  5. What are my rights as a 1099 employee?
  6. How can EOR Middle East help you?

1. What are 1099 employees?

A 1099 employee is an individual who labors independently instead of being subject to a permanent contract. These types of workers are also called freelancers, self-employees, independent contractors, or sole proprietors. Ultimately, they are called 1099 workers due to the tax form that their managers are needed to fill out.

Companies frequently contract these types of workers to complete a specific project. 1099 employees do not have regular wages or salaries. Instead, they usually negotiate their payments and how frequent they are with employers before starting to work.

In this way, 1099 employee is in charge to manage their own business. Independent workers offer their skills and experience to companies that need to complete a certain job. Therefore, they provide a wide variety of services that cover many areas.

Usually, they work for various companies at the same time. 1099 employees are usually hired through a staffing agency. This is an easier option due to companies not having to worry about going through a long recruitment process by themselves. Requiring the support of an agency can give you many benefits.

Recruitment agencies can help employers and employees alike. For workers, they offer their services to receive their resumes and find the best job opportunities that will fit their expertise. On the other hand, for companies, agencies will be in charge of supplying experienced employees who can complete any necessary project.

2. Benefits of being a 1099 employee

Working as a 1099 employee can be very beneficial. Usually, these types of workers are self-employed, which means that they have control over their work. However, due to their independent status, they do not enjoy the regular perks that being a permanent employee can offer. Nonetheless, freelancers can enjoy many welfares such as:

2.1 Great work-life balance

1099 employees can work from the comfort of their homes. Usually, companies do not provide office space for these workers, therefore, allowing them to work remotely. These conditions can lead to having a better work-life balance by allowing employees the chance to choose their working schedule.

By working remotely, freelancers are not obligated to work overtime to finish a certain project. Usually, they can complete it in their own time. Also, they do not have to commute or spend hours driving to work. Therefore, obtaining more availability to have time for their families.

2.2 Opportunities to develop in many areas

Independent workers can always choose to grow in many areas. They can always take some time to enroll in new courses and train to further develop their skills. Additionally, 1099 employees, can sign up to finish more assignments to help develop their knowledge. Therefore, adding a layer of experience.

Having interest in other areas can also be very beneficial. For example, if an independent employee is working in a certain area and wants to expand to another all they have to do is acquire the necessary knowledge. Providing many skills can lead to much more job opportunities for you.

2.3 Obtaining a better income

Working as a 1099 employee can allow you to accept as many projects as you feel comfortable with. Therefore, you will be able to have many incomes at the same time. Ultimately, you are the one setting your rates and conditions with interested companies, providing yourself with work flexibility.

Having a bigger income leaves you with the possibility of saving money for emergencies or retirement. It is important to note that 1099 employees do not count with the same job benefits as permanent employees. Consequently, being careful with your finances can provide you with a stress-free life later on.

3. Who can work as a 1099 employee?

In the Middle East, any professional can work as a 1099 employee. Anyone can cover a job opportunity if they have the necessary amount of knowledge and experience. Usually, these workers bring their expertise and apply it to a project with no hesitation.

Nevertheless, there are certain job areas where independent employees are more popular than others. For example:

  • Consultants.
  • Web Developers.
  • Programmers.
  • Agriculturists.
  • Contractors.
  • Accountants.
  • Lawyers.
  • Writers.

Due to a rising economy, foreigners are finding a niche in the Middle East. Thanks to favorable working conditions and the availability of many job opportunities, independent workers are coming from everywhere. Therefore, being aware of the necessary permits and visas required in places like Kuwait is very important.

Remaining legally compliant is a must in the United Arab Emirates. Subsequently, contracting an agency that can help you deal with any legal queries before arriving in any Middle Eastern region is a very wise decision. These agencies can also help you find the right job opportunities for you.

Independent newcomers need to fulfill some basic requirements before starting to work. Before starting to work as a 1099 employee you need to assure that you qualify as a freelancer. This process is important so you are not misclassified. Misclassification of an employee can lead to serious law penalties.

Additionally, you need to register your business with the necessary authorities. Moreover, it is essential to acquire a vocational license if your occupation requires it and obtain a tax registration certificate. Once you complete every process, you can start providing your services as a 1099 employee under Middle Eastern laws.

4. Advantages of hiring 1099 employees

Sometimes it can be difficult for a company to decide between hiring a permanent employee and an independent 1099 employee. But, in the end, they will choose the one who offers more value to their company. Nonetheless, hiring freelancers can bring many conveniences to a company, such as:

4.1. Exceptional Work Quality

1099 employees are qualified, experienced, and skilled to perform any type of job. Freelancers are passionate about their work, allowing them to deliver high-quality projects. They will do anything in their power to meet any deadlines, arranging their schedules to provide a top-of-the-notch service in no time.

It is easier for companies to acquire freelancer services than to train an employee to complete a certain task. Therefore, having a talented 1099 employee within your workforce brings value to your company. Also, employing workers from countries like can help you expand your company to new territories.

4.2. Less Management

Due to their experience in the business, 1099 employees help you avoid any difficulties. They usually require less supervision than a permanent employee and they are likely to receive directions right the first time. Ultimately, they know how to approach certain projects easier and wiser to obtain better results.

With the support of independent workers, managers can focus on other projects. Also, freelancers are exceptional at delivering projects in a short amount of time. They are ready in case an emergency presents and their schedule tends to be flexible. Usually, they are available for hire at any time.

4.3. Cost Efficiency

Hiring 1099 employees can help you stay within budget. Companies are not obligated to cover benefits such as paid day-offs, social security, or healthcare. Therefore, allowing themselves to save money when necessary. Freelancers often work remotely, subsequently, keeping employers from having to provide office space.

Businesses often hire the services of an agency to help them suffice their employees’ payroll. Consequently, paying any remote worker is not a problem that managers should be worried about. With the right kind of support, providing payments to your workforce should be an easy process for everyone involved.

4.4. Short-Term Commitment

When hiring a 1099 employee you do not have to worry about their livelihood or their expectations of long-term job security. Freelancers’ contracts are usually valid for a short period. In this way, they allow companies to have more flexibility when necessary.

Also, if an independent employee is not the right fit, they can hire a new one for the next project. With the help of a recruiting agency, your business will be always able to find, hire, and onboard 1099 employees quickly. Additionally, you will increase diversity and have new perspectives.

5. What are your rights as a 1099 employee?

With the work market changing quickly, there are numerous doubts about independent work. Nevertheless, is very important to be sure about your privileges as a 1099 employee, so you do not have any legal inconveniences with companies. More businesses are hiring freelancers every day, therefore, knowing their rights is imperative:

5.1. Work Convenience

As an independent, you have the right to work at your time and place. You should be able to create your schedule, one that is tailored to your occupations. Nonetheless, if a client expects you to be present during a project, you should be there.

Also, you need to be able to provide the necessary equipment and tools for a specific project. You have to be aware that your responsibilities are not the same as a permanent employee, therefore, that could be misclassified. A recruitment agency will allow you to be aware of any mishaps.

5.2. Contractual Privileges

1099 employees need to be aware that their contracts are legally compliant. Before starting to work on any projects, you need to make sure that a contract is in its right place. These contracts need to specify the amount and frequency of payments, working hours, and duration of the project.

Additionally, the contract needs to specify the termination conditions. If these conditions are not in place, any of the parts could end the contract without notice. Discussing the termination process before starting a project is a good idea. It is necessary to set contractual clauses that protect both parties.

5.3. Right to Advertise

As a 1099 employee, you can promote your business as much as you want to. You can offer your services to many companies at the same time. It is important to remember that you are not permanently restricted to any contract. You have the right to work for numerous businesses. 

Also, you have can manage your business and profits. If any company does not complete your required payments, you are permitted to take legal actions for breach of contract.

6. How can EOR Middle East help you?

Associating with a Professional Employer Organization will do wonders for your business. Obtaining the help of our specialists will help you deal with many inconveniences. Whether you are looking for an employee or a job opportunity, EOR Middle East is here for you.

We offer a large variety of services that will help employees and employers alike. If you are looking to expand your business, we are the right option. Our agency can help you expand to any region of the Middle East. We have the tools to support any of your endeavors.

Are you looking for a 1099 employee in the Middle East? If you are interested in our PEO services, call us at 00 971 433 16 88. Or send us an email at [email protected]. Our dedicated agents will clear any of your doubts

Furthermore, if you are looking for a job opportunity, go to thetalentpoint.com and submit your resume or CV. You can also send us an email at [email protected] and we will gladly receive your application.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.


Get In Touch

We help you to compliantly hire, pay, and manage the Right Talent across Middle East Regions