How to Reduce the Risks of Contract Reclassification

Borovtsov & Salei Seminar for the Association of International Pharmaceutical Manufacturers

On March 4, 2026, the law firm Borovtsov & Salei held a specialized seminar for members of the Association of International Pharmaceutical Manufacturers (AIPM) on one of the most sensitive issues in law enforcement practice: the risks of substituting civil law contracts for labor relations. The relevance of this topic is driven by the active use of contractor's contracts and paid service agreements by pharmaceutical companies when interacting with individuals, sole proprietors, and the self-employed. Given the increased scrutiny from regulatory/supervisory authorities, the issue of correctly classifying these relationships is of strategic importance to businesses.

Lada Maisenya, partner at Borovtsov & Salei, delivered an expert presentation. The seminar covered in detail:

• Key criteria for distinguishing between an employment contract and a civil law contract;

• Legal approaches of regulatory authorities to reclassifying relationships;

• Common mistakes when drafting contracts with individuals;

• Practical tools for mitigating reclassification risks;

• Potential legal and financial consequences of recognizing a relationship as employment (additional charges, fines, adjustments to personnel documentation).

A separate section was devoted to the specifics of interactions with sole proprietors and the self-employed, including an analysis of factual circumstances that may indicate the presence of employment characteristics in the relationship. Participants received a structured algorithm for legally assessing contractual models and recommendations for building a secure system for interacting with contractors and service providers.

Borovtsov & Salei has extensive experience supporting companies in the pharmaceutical sector and consistently develops educational initiatives for the professional community. As part of its collaboration with the Association of Pharmaceutical Producers (AMPP), further expert events are planned aimed at mitigating legal risks and developing sustainable compliance practices in the industry.