get_misclassification_risk

Instructions

Implementation Reference

• src/main.ts:376-511 (schema)

  The MISCLASSIFICATION_RISK data dictionary — a typed Record mapping country codes to objects with risk_level, legal_test, enforcement_authority, typical_penalty, retroactive_liability, recent_enforcement_examples, red_flags, and safer_path. This is the data schema/backing store for the tool.

  const MISCLASSIFICATION_RISK: Record<string, {
    risk_level: string,
    legal_test: string,
    enforcement_authority: string,
    typical_penalty: string,
    retroactive_liability: string,
    recent_enforcement_examples: string[],
    red_flags: string[],
    safer_path: string
  }> = {
    uk: {
      risk_level: "High",
      legal_test: "IR35 status determination — Mutuality of Obligation, Personal Service, Control. Plus CEST tool from HMRC.",
      enforcement_authority: "HMRC + Employment Tribunal",
      typical_penalty: "Backpay of taxes + NI + interest + 0-100% penalty",
      retroactive_liability: "Up to 4 years (6 if deliberate)",
      recent_enforcement_examples: [
        "Multiple BBC presenters reclassified as employees post-IR35",
        "Pimlico Plumbers Supreme Court case re: worker status"
      ],
      red_flags: [
        "Same contractor working >2 yrs full-time exclusively",
        "Set hours, embedded in team, uses company equipment",
        "No right of substitution"
      ],
      safer_path: "EOR for true employee relationships. Genuine B2B contractor only with Statement of Work + multiple clients + own tools"
    },
    germany: {
      risk_level: "Critical",
      legal_test: "Scheinselbständigkeit / Statusfeststellungsverfahren — multi-factor test by Deutsche Rentenversicherung. Personal dependence, no entrepreneurial risk, integration into client.",
      enforcement_authority: "Deutsche Rentenversicherung Bund + tax office + Hauptzollamt",
      typical_penalty: "Up to 4 yrs back social security (employer + employee shares) + interest + criminal liability for principal",
      retroactive_liability: "Up to 4 years (30 yrs in fraud cases)",
      recent_enforcement_examples: [
        "Many crowd-working / gig platforms (Helpling, Foodora) reclassified",
        "Engineering consultants commonly caught"
      ],
      red_flags: [
        "Single client representing >5/6ths of contractor revenue",
        "Working from client premises with client equipment",
        "Fixed working hours imposed by client",
        "Reporting to a manager"
      ],
      safer_path: "EOR is the safe bet. Real Selbständigkeit requires multiple clients, own tools, own risk."
    },
    france: {
      risk_level: "Critical",
      legal_test: "Travail dissimulé (concealed employment). Lien de subordination (subordination link) test.",
      enforcement_authority: "URSSAF + Inspection du Travail + criminal courts",
      typical_penalty: "Up to 5 yrs back social security + 45,000€ fine + 3 yrs prison for principal",
      retroactive_liability: "Up to 5 years",
      recent_enforcement_examples: [
        "Uber drivers reclassified by Cour de Cassation 2020",
        "Deliveroo France criminal conviction"
      ],
      red_flags: [
        "Subordination — fixed hours, set tasks, no autonomy",
        "Long-term single-client relationship",
        "Use of client tools, branding, email"
      ],
      safer_path: "EOR for any worker integrated into the team. Portage salarial as alternative for senior independents."
    },
    spain: {
      risk_level: "Critical",
      legal_test: "Falso autónomo test. Inspección de Trabajo applies indices: dependence, exclusivity, integration.",
      enforcement_authority: "Inspección de Trabajo y Seguridad Social",
      typical_penalty: "Backpay social security + fine 626-187,515€ per worker + criminal liability for serious cases",
      retroactive_liability: "Up to 4 years",
      recent_enforcement_examples: [
        "Glovo riders nationally reclassified (Riders Law 2021)",
        "Major fines on consultancies misclassifying programmers"
      ],
      red_flags: [
        "TRADE (Trabajador Autónomo Económicamente Dependiente) territory: 75%+ revenue from one client",
        "Schedule, location, deliverables dictated by client",
        "Worker doesn't bear business risk"
      ],
      safer_path: "EOR or proper TRADE contract with explicit acknowledgment + protections"
    },
    netherlands: {
      risk_level: "High",
      legal_test: "Wet DBA (Deregulation Assessment of Working Relationships Act). Authority, embedded work, personal performance.",
      enforcement_authority: "Belastingdienst (tax authority)",
      typical_penalty: "Backpay payroll tax + social security + ~25-100% surcharge",
      retroactive_liability: "Up to 5 years",
      recent_enforcement_examples: [
        "Deliveroo couriers reclassified (Supreme Court 2023)",
        "Many platform workers under scrutiny"
      ],
      red_flags: [
        "ZZP working for one client long-term",
        "No real entrepreneurial risk",
        "Client controls how work is done"
      ],
      safer_path: "Modelovereenkomst (model agreement) approved by tax authority + multi-client reality, OR EOR"
    },
    mexico: {
      risk_level: "Critical (post 2021 reform)",
      legal_test: "LFT defines vínculo laboral: subordination, salary, personal service. 2021 reform criminalized non-REPSE outsourcing.",
      enforcement_authority: "STPS (Labor Ministry) + IMSS + SAT",
      typical_penalty: "Backpay employee benefits (PTU, vacation, aguinaldo, IMSS, INFONAVIT) + fines + criminal for non-REPSE",
      retroactive_liability: "5 years",
      recent_enforcement_examples: [
        "Massive 2021 reclassifications post-outsourcing reform",
        "Many tech companies fined"
      ],
      red_flags: [
        "Independent contractor with single client + subordination",
        "Use of client tools, branding",
        "Specialized services without REPSE registration of provider"
      ],
      safer_path: "EOR through REPSE-registered provider OR direct hire"
    },
    brazil: {
      risk_level: "Critical",
      legal_test: "CLT vínculo empregatício recognition: pessoalidade, habitualidade, onerosidade, subordinação.",
      enforcement_authority: "Justiça do Trabalho (Labor Courts) + Ministério do Trabalho",
      typical_penalty: "Backpay all CLT rights (FGTS, 13th, vacation, PIS, INSS) + 40% FGTS penalty + 50% sometimes punitive",
      retroactive_liability: "5 years (rolling)",
      recent_enforcement_examples: [
        "Numerous PJ-to-CLT reclassifications in IT/tech",
        "Many platform delivery workers cases ongoing"
      ],
      red_flags: [
        "PJ contractor working full-time exclusively for years",
        "Use of company email, equipment",
        "Reporting structure same as employees"
      ],
      safer_path: "EOR (CLT) or strict PJ with multiple clients + entrepreneurial reality"
    },
    ireland: { risk_level: "Medium", legal_test: "WRC Code of Practice + 2021 Code on Determining Employment Status", enforcement_authority: "Revenue + WRC + DSP", typical_penalty: "Backpay PAYE + PRSI + USC + interest + penalties", retroactive_liability: "4 years", recent_enforcement_examples: ["Domino's Pizza drivers reclassified 2023"], red_flags: ["Long-term single client engagement", "Fixed hours, premises"], safer_path: "EOR or genuine contractor with multiple clients" },
    india: { risk_level: "Medium", legal_test: "Industrial Disputes Act 'workman' definition + control & integration tests", enforcement_authority: "Labor Department + EPFO + GST", typical_penalty: "Backpay EPF + ESI + gratuity + interest", retroactive_liability: "3-5 years", recent_enforcement_examples: ["Multiple IT consultancy reclassifications under EPFO"], red_flags: ["Long-term consultant on payroll-like arrangement"], safer_path: "EOR or true freelancer with multiple clients" },
    japan: { risk_level: "Medium-High", legal_test: "Disguised employment (gisō ukeoi) test by Labor Standards Inspection Office", enforcement_authority: "Ministry of Health, Labor, and Welfare", typical_penalty: "Backpay social insurance + reputational damage", retroactive_liability: "5 years", recent_enforcement_examples: ["Several gyōmu itaku contracts reclassified"], red_flags: ["Long-term contractor in subordinate relationship"], safer_path: "EOR or true independent" },
    singapore: { risk_level: "Low-Medium", legal_test: "MOM/IRAS examines control, financial dependence, personal service", enforcement_authority: "MOM + IRAS + CPF Board", typical_penalty: "Backpay CPF + tax + fines", retroactive_liability: "5 years", recent_enforcement_examples: ["Several tech contractor reclassifications 2023-25"], red_flags: ["Single-client long-term arrangement"], safer_path: "EOR or properly structured contractor" },
    nordics: { risk_level: "High", legal_test: "Each country has own test — generally personal subordination, exclusivity, integration. Strong union involvement.", enforcement_authority: "Skatteverket (SE), Skatteetaten (NO), etc.", typical_penalty: "Backpay social fees + tax + arbetsgivaravgift + penalties", retroactive_liability: "Up to 6 years (varies)", recent_enforcement_examples: ["Foodora couriers Sweden/Norway reclassifications"], red_flags: ["Long-term single client", "No real entrepreneurial risk"], safer_path: "EOR with kollektivavtal compliance" }
  };

• src/main.ts:682-686 (registration)

  Tool registration in the ListToolsRequestSchema handler — declares get_misclassification_risk with a description and inputSchema requiring a country parameter validated against MISCLASSIFICATION_RISK keys.

  {
    name: "get_misclassification_risk",
    description: "Country-specific misclassification (false self-employment) risk analysis. Returns risk level, legal test, enforcement authority, typical penalty, retroactive liability period, recent enforcement examples, red flags, safer path.",
    inputSchema: { type: "object", properties: { country: { type: "string", enum: Object.keys(MISCLASSIFICATION_RISK) } }, required: ["country"] }
  },

• src/main.ts:739-744 (handler)

  The handler (within CallToolRequestSchema switch) — extracts country from args, looks it up in MISCLASSIFICATION_RISK, throws if unknown, and returns the risk data wrapped in a JSON response with module label.

  case "get_misclassification_risk": {
    const country = args?.country as string;
    const risk = MISCLASSIFICATION_RISK[country];
    if (!risk) throw new Error(`Unknown country: ${country}`);
    return { content: [{ type: "text", text: JSON.stringify({ module: "Misclassification Risk", country, ...risk }, null, 2) }] };
  }