Case Study on Employee and Independent Contractor Relationship

RUNNING HEAD: CASE STUDY
CASE STUDY
Name of the student
Name of the university
Author Note

1
CASE STUDY
Response to case study 1:
Issue:
The main issue regarding the provided case is whether William’s boss was right
regarding the information of being an independent contractor and an employee.
Rule:
An employee is an individual who gives services in favour of the employer exchanging
consideration that should be adequate. The adequate consideration will be the salary in exchange
for service provided by the employee. The term independent contractor is an individual
providing services to their clients for some specified fee.
The following test can be taken into account for determining whether the worker
providing service is an independent contractor or an employee:
Mutuality of responsibility: this is a type of requirement based on the fact that contractual
employment does not require wages in exchange of effort but also it provides a promise that
should be mutual for performing in the future.
The magnitude of control: details of the control about the task carried out by a worker is a good
indicator regarding the employment relationship.
Personal relationship: the term relationship can be defined in such a way that any employees be
obliged to the duty of fidelity and loyalty for the employer.