This document discusses the common law tests used to determine the employment status of a person. It also analyzes the employment status of Lorraine, a beauty technician working with Collagen Pty Ltd, and whether Collagen is liable to treat her according to the redundancy provisions mentioned under the policy developed by the same.
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Running head:HUMAN RESIURCES MANAGEMENT LAW 0 Human Resource Management Law 10/10/2019 Student’s Name
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HUMAN RESIURCES MANAGEMENT LAW2 Issue (a) The issue is to check the employment status of Lorraine. Whether the same should be considered as an employee or as an independent contractor. Rules (a) Common-Law gives some tests using that employment status can be checked. These tests have been given in the decisions of different cases. These tests are discussed in the following section. The very first test has been granted in the decision ofYewens v Noakes(1881) 6 QBD 530 and known as a control test. As the name shows, under this test, the control level of one party over another determines whether the person is acting in the capacity of an employee or whether the same is an independent contractor (Lawexplores.com, 2015). As per rules of this test a person is treated as an employee in those cases where the other person decides the manner of working in terms of shift hours, uniform and organizational rules. The second test provided by common law is the integration test. Under this test, courts check that how a person is integrated into the dealings of an organization. The test has been used and confirmed in the case ofCassidy v Ministry of Health[1951] 2 KB 34. Further in the case ofStevenson, Jordan & Harrison Ltd v MacDonald & Evans[1952] 1 TLR 101 the test again has been used where the court confirmed that if a person is an integral part of the entity then in such a situation the same is treated as an employee and not an independent contractor.
HUMAN RESIURCES MANAGEMENT LAW3 The last common law test to discuss here is the multi-factor test. Court founds some issues with control test and integrated test as they only focus on one or two factors hence in today's world courts use multiple tests (multi factors test). The earlier two tests i.e. control test and integration test has been absorbed into a multifactor test. Under this test, courts check and review many of the factors in a relationship between two persons and then make a conclusion. Every factor has a crucial role in determining the employment status of a person. The multifactor test has been given in the decision ofStevens v Brodribb Sawmilling Co Pty Ltd[1986] HCA 1. These factors have been given while deciding on different cases. For instance, in the case titled asACE Insurance v Trifunovski[2013] FCAFC 3, it was given that a person considers as an employee if the same needs to attend a training offered by the other person. Further the case ofOn Call Interpreters and Translators Agency v Commissioner of Taxation(No 3) [2011] FCA 366 stated that if a person is required to work as per the instruction of others then also such person is treated as an employee of the other person who gives such instructions.Humberstone v Northern Timber Mills(1949) 79 CLR 389 is another important case to discuss here where it was given that compulsion to wear the uniform of organization confirms the existence of an employer-employee relationship (Fairworklegaladvice.com.au, 2018). Hence, to state that using these three tests, courts may decide the employment status of a person. Application (a)
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HUMAN RESIURCES MANAGEMENT LAW4 Lorraine is working as a beauty technician and is associated with Collagen Pty Ltd (which runs salon). As no written contract exists between the parties, the help of common law tests discussed above seems to be required. As many of the aspects and factors are there in this case, hence multi-factor test seems to be the most relevant test to check the employment status of Lorraine. Lorraine had her own ABN and she used to charge additional charges for the extra treatment given to customers. This shows her independency at first instance but many other factors are also required to check here. She was using the material provided by the salon and her working hours were almost fixed from 9 to 5. Further, she could only leave when her supervisor allows so. Further, the salon control activities and manner of working of Lorraine. She is required to follow rules developed by salon such as no smoking, client etiquette, washing hands and so on in the manner that not following the same can dismiss her. In this manner, it is to state that the salon controls Lorraine's manner of working. Secondly, she provides beauty services to the client, which is an integral part of the business and not merely an accessory to it. ApplyingStevenson, Jordan & Harrison Ltd v MacDonald & Evans, Lorraine should be considered as an employee. She is also required to wear a uniform of salon hence applying the provisions of Humberstone v Northern Timber Mills,she seems to be an employee. Further, the other factors also demand Lorraine be considered as an employee as she has to keep herself free on Saturday and can also demand additional payment when she is done with daily targets. It means she has daily targets and shall be considered as employee applying On-Call Interpreters and Translators Agency v Commissioner of Taxation.
HUMAN RESIURCES MANAGEMENT LAW5 Conclusion (a) As per multiple tests, Lorraine is a party of the contract of employment. Issue (b) Considering Lorraine as the employee does Collagen is liable to treat her under according to the redundancy provisions mentioned under the policy developed by the same. Rules (b) An employment contract may be developed orally. Further, if a person is an employee then the same needs to be covered under organizational policies. In the case titledYousif v Commonwealth Bank of Australia(2010) 193 IR 212, it was given that a policy or code of an entity does not apply to an employee when it is agreed by the parties (Goodwin and Wiese, 2010). Application (b) In the given case, Lorraine is an employee of Collagen and noting regarding non-applicability is given. As no intention of non-applicability of policy has shown by the parties hence applying the provisions ofYousif v Commonwealth Bank of Australia, Lorraine Shall be covered under the policy that contains redundancy provision.
HUMAN RESIURCES MANAGEMENT LAW6 Conclusion (b) No matter that a written contract does not exist between the parties, if Lorraine is an employee then Collagen is liable to make her payment as per the redundancy provisions of policy developed by it.
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HUMAN RESIURCES MANAGEMENT LAW7 References ACE Insurance v Trifunovski[2013] FCAFC 3 Brodribb Sawmilling Co Pty Ltd[1986]HCA 1 Cassidy v Ministry of Health[1951] 2 KB 34 Fairworklegaladvice.com.au. (2018)A new way of putting it; employee or contractor?Retrieved from: https://fairworklegaladvice.com.au/a-new-way-of-putting-it-employee-or- contractor/ Goodwin, E., & Wiese, L.(2010).Employment contracts: The implied term of mutual trust and confidenceEmployment contracts: The implied term of mutual trust and confidence. Retrieved from: https://www.claytonutz.com/knowledge/2010/august/employment- contracts-the-implied-term-of-mutual-trust-and-confidence Humberstone v Northern Timber Mills(1949) 79 CLR 389 Lawexplores.com. (2015).Vicarious Liability. Retrieved from: https://lawexplores.com/vicarious-liability/ On Call Interpreters and Translators Agency v Commissioner of Taxation(No 3) [2011] FCA 366 Stevenson, Jordan & Harrison Ltd v MacDonald & Evans[1952] 1 TLR 101 Yewens v Noakes(1881) 6 QBD 530 Yousif v Commonwealth Bank of Australia(2010) 193 IR 212