Do a caterer’s event staff work as contractors or employees when I buy?

Ask for a roster of everyone who worked events recently, with how each person is engaged: on the payroll, paid as a contractor, or supplied by a staffing agency. Ask for the written agreements, if any. A tangled mix, or a roster with no paperwork behind it, is a flag worth raising early.

Next, ask how the seller decides the label. The way the work is actually done matters more than what the paperwork says: who sets the hours, who supplies the tools and uniforms, and whether people can send a substitute. Your lawyer and accountant can tell you whether the arrangement holds up, and what risk would come across to you in the sale.

Consider continuity as well. Event staff are often loyal to the people who book them. Ask who does the scheduling, whether staff have ever left for a competitor, and how many regulars you can count on for a busy weekend. A good bench is part of what you are buying. Finally, decide how you will handle the changeover. If staff are employees, discuss with your lawyer how their service and entitlements pass to you. If contractors, plan how you will confirm new terms with each.

Key takeaways

• Get a full roster showing how each person is engaged and paid.
• Judge the label by how the work is really done, with your accountant’s advice.
• Identify the regular core of staff and who schedules them.