Employment Law Questions? Ask an Employment Lawyer.
Hello and welcome.
This is a tough one. The inclusion of a fine/penalty provision is probably the best thing you can do. You may also wish to include a clause permitting early termination of the contract. Beyond these solutions, the only thing you can really do is replace your employees with people who are more reliable. Failing to complete basic job functions is simply not acceptable, and sometimes the only thing you can do is find better quality people to work for you.
I hope that you find this information helpful. Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.
Thank you for your reply.
Assuming these individuals are properly classified as independent contractors, they are not protected by the labor code. This means they are not entitled to minimum wage, overtime, or any protections relating to deductions from earned wages. The only protections and rights that an independent contractor has are those afforded to them through their contract. This means that a clause providing for fines would be perfectly legal to include in a contract for an independent contractor. If the contractor agrees to the clause, it is enforceable. Simple as that.
I hope this clarifies things. Again, please feel free to let me know if you have any further concerns.