Employment Law: Independent Contractor vs Employee

Employment Law

TABLE OF CONTENTS
1. Whether Peter is an independent contractor or an employee of the Club or the Agency.......3
2. Determining the rights, obligations or any breach of implied duties as an employee............4
REFERENCES................................................................................................................................7

1. Whether Peter is an independent contractor or an employee of the Club or the Agency
Issue:
There has been a contract between ABC Agency and the Club which stipulates that Peter
is an independent contractor. The issue pertaining to the case is to determine whether Peter is an
independent contractor or an employee of the Club or the Agency based upon the working
instructions given to the Peter by the Club.
Legal:
As per the Australian Employment Law, the relationship between the employer and
employee of the company is known as contract of service while the relation between the
employer and the individual contractor is a called contract for service. An employee mainly
works full time, part time or as per the decision or the direction of the employer. But a contractor
mainly works for the hours which is required for the purpose of carrying out the task and
generally has more control over the ways of carrying out the task (Dixon, 2016). The main
difference between the two is that employee works within that business and is also considered as
a part of it while the contractor runs their own business. There are other factors as well to be
considered for evaluating the position of the person. For example, the employee cannot delegate
the work to someone else while a contractor can delegate the task by paying someone else to
work. The basis of making payment in case of an employee is either based on task completed or
the amount of time worked but on the other case, the worker is paid on the result achieved and
mainly on the hourly basis.
In case of an employee, the employer provides all the tools and equipment in order to
carry out the activities or the task in an effective way and in case the employee provides the same
then the amount is reimbursed by the business. On the other hand, the contractor brings all the
tools and assets required for completing the task and the worker does not receive and
reimbursement for the cost incurred (Silink & Ryan, 2018). The business has a complete control
over the right to direct the ways through which the worker requires carrying out the work which
is subjected to the terms of contract. In terms of independence, the worker is not working
independently of the business. The worker is working within and are part of the business. But,
worker under contract operates their own business and performs the activities as per the terms of
agreement and thus, can accept or reject the additional work. Therefore, these are the major