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The Common Law - Assignment

   

Added on  2021-06-14

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID

TAXATION LAW1Topic:The Common Law test for determining differentiating among the employee orindependent contractor is not any more relevant following the incorporation ofstatutory definition of employee in certain regimes of taxation:Introduction: Contracting has turned out to be a substitute in respect of the old-style employee-employer relations. A contract might engage with an enterprise either directly or as thenatural individual with the help of trust, through partnership, or company or may engage withlabour hire agency (Barkoczy 2014). At times contracting is regarded as the necessaryelement where an individual may require the skill of expertise which is not easily obtainableby hiring an employee. There are some individual that wish to be indulged as contractorsespecially in the event of providing service to numerous multiple clients. Contracting mayprove as the more cost efficient tool than employment. The current research study would be providing a thorough outline of the law, relevantrules, appropriate structures and the trends that creates an impact on the employment andindependent contract arrangements. The initial part of the research study would be based onthe discussion of the lawful framework that governs the contract and the arrangement foremployment in Australia (Belloc 2017). Whereas the later part of this research would bediscussing the related associated risks and exposure. The research would be addressing thecorrect structures and methods involved in structuring the arrangements for independentcontracts. Finally the research would deal with the current trends and cases along with theimplications of the cases on the employers and employee. Legal framework differentiating employees from Independent Contractors: The recent cases bought forward in Australian judges and court of law have in the lastyears handed huge penalties and compensations against those individuals that are caught in

TAXATION LAW2act of mischaracterising employees and relationships of independent contract. Such casesreflects the managers, employers, directors and the companies that hire labour to be moreunderstanding and utilising the definition of employment and arrangement for independentcontractor (Brokelind 2014). According to the “Fair Work Ombudsman” strong standpointagainst the bogus contracts and mischaracterised employment relationships acts as thewarning for those individuals that are either irresponsibly or decisively falsifying theiremployees or arrangements for contracts. The increasing amount of strong standpoint by the “Fair Work Ombudsman”, highcourt and the tribunals against those individuals that are failing to appropriately apply thecontract arrangements, it is necessary to recognize the difference between the contractors andthe employees (Coleman and Sadiq 2013). Similarly, difficult trading environment and highercosts of labour have created some of the contracting relationships to businesses that arelooking forward to maintain the competition and flexibility of labour in Australia.Nevertheless, there are hazards in indulging the individual as the contractor without havingcorrect understanding of the law. There might be an instances where a person is considered tobe an Australian employee under the law and this accompanies numerous lawful obligationsand liabilities if it is incorrectly interpreted. Factors determining the individual to be employee and independent contractor: According to the common law of Australia it identifies a differences between anemployer working relations and the employee relationship. The common law also identifiesthe differences between the working relationship of the principal and the independentcontractor. The former is identified as the “Contact of Service” while the latter is identifiedas the “contract for services”. There are significant lawful consequences whether theemployee is the worker or the independent contractor (Grange, Jover-Ledesma andMaydew2014). The concrete consequence of this outcome is that prior to indulging with any

TAXATION LAW3worker as the independent contractor, employers are required to evaluate the substantivenature of the working relations in order to ascertain whether the worker is actually anemployee or the independent contractor. Correctly evaluating the differences between the employee and the independentcontractor is important for four chief causes; a.Initially the two types of relationships is considered as mutually exclusive and asdefined each of the relationships results in fundamental different rights andobligations in contractual tortious and fiduciary contexts (James 2014). b.Statutory rights together with the responsibilities that are assigned to the independentcontractors are occasionally enjoyed. Likewise, the liability to tax for both theworkers and the employers creates a significant influence on the latter classifications. c.The acts that are done by the worker especially in respect of the vicarious liabilityoriginates for the employer chiefly where the workers is the employee, but not in thesituation where a person is an independent contractors (Kenny 2013). d.Lastly, under some jurisdictions there are statutory restrictions that would impact therights of the employees but would not affect the independent contractors, in respect ofthe ability to prosecute for damages that originates during the employment course. According to Krever (2013) differentiating between the employee and theindependent contractor is considered to be vital element of the Australian employment law.Consequently, there is a noteworthy form of well-defined principles that helps in helping thecourt in distinguishing between the two arrangements. There has been very restricted movement amid the statute or the common law as theattempt to define the employment or the employment relationship with particular reference toemployee-contractor contradiction. Instead, the status of worker is ascertained with reference

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