Workplace Law: Employee or Contractor, Binding Policies, and Justified Dismissal

Running head: WORKPLACE LAW
Workplace Law
Name of the Student
Name of the University
Author Note

1WORKPLACE LAW
Question 1
Issue
Whether Bob still remained an employee or he is a contractor at present.
Rule
The Employment Laws under the common law regime is applicable only to the employees
with respect to their relationship with the employer. It does not extend to the contractors, as
they are different from employees (Anderson, Brodie, & Riley, 2017). The differentiation
between the contractor and the employee can be made applying the multi factor test that has
evolved under the common law with several cases. The threefold test formulated in the case
of Ready Mixed Concrete Ltd v Minister of Pensions [1968] 2 QB 497, has been the
inception to the multi factor test.
The factor of the multi factor test, which is of paramount importance, will be the control
factor. The control of the work performed is one of the main decisive factors in distinguishing
a contractor from an employee. The control over the work performed by the employees is
mostly exercised by the employer and the employees are required to carry out their duties
under the authority of the employer (Sappideen, O'Grady, & Riley, 2016). On the other hand,
the discretion with respect to the work to be carried out by the contractor lies with the
contractor only. The contractors are basically, independent in performing their work and the
employer does not have any control over the same. The mode that the contractor chooses to
perform his work in, depends upon the desire of the contractor. However, in performing the
work, the contractor needs to make regards to the terms of the contract that has been entered
with the employer.

2WORKPLACE LAW
The power in relation to delegation is another significant factor of distinction between the
employer and the contractor. The contractors are generally required to appoint other people to
perform their work whereas the employees needs to complete their work by themselves and
no power of delegation is available to them.
Exclusiveness in performing work is yet another factor in drawing distinction between a
contractor and an employee. The services rendered by employees are exclusive to the
employers. However, contractors might deal with more than a single client.
The mode of payment of remuneration is also a factor of difference between the employee
and a contractor. In case of employee the payment of timely remunerations are made while
the contractors are paid in units of work completed.
The timing of the work performed is another decisive factor in making distinction between
the contractor and the employee. The contractor has the discretion of carrying out their work
at any time they prefer. But in case of employees, the work needs to be performed at a time
fixed by the employer and the employee does not have much independence on it.
In the case of Short v J W Henderson Ltd [1946] 62 TLR 427, manner of suspension,
control of conduct, remuneration and dismissal has been identified as the decisive factor.
The obtaining of Australian Business Number (ABN) does not make a person contractor
automatically. The multi factor test also needs to be complied with for becoming a contractor.
Application
The nature of the relationship between Bob and RSL has traces of both an employee-
employer relationship and a client- contractor relationship. The multi factor tests exist to
adequately determine the exact nature of this relationship. The first test is control. In this
scenario RSL has full control and supervision over the actions and activities of Bob. They
determine the nature, scope and all the other details for Bobs work along with the pay. The
next test is the ownership of tools and equipment, as Bob works as a sommelier he only has