Determining the employer employee relationship is most

determining the employer employee relationship is most

The traditional employer/employee relationship is being eroded as Under the factors I have previously mentioned, most courts would determine that the. The definition of "employee" and employer/employee relationship, This test was seen as too simplistic especially in recent years, when highly skilled. determining the employer-employee relationship under the Federal Revenue Service makes many rulings every year distinguishing em- ployees and.

Ontario also considers the intent of the parties as evidenced in the terms of a written contract and the mutual understanding of the parties at the time of entering into the contractual relationship. Such contracts will only be given weight if they accurately reflect the relationship between the parties.

determining the employer employee relationship is most

Control The control test is used to determine whether a person is in a position to direct or require not only what work is to be done, but also how it is to be done. The payer assigns specific tasks that define the real framework within which the work is to be done. The payer exercises control if he or she has the right to hire or fire, and decide where, when and how the work will be done.

If such is the case, then the payer clearly exercises control over the worker, who may then be considered to be an employee for EHT purposes. It is not necessary that control actually be exercised, only that it can be exercised. The control test may not be determinative when examining the employment of professionals who, because of their expertise and specialized training, may need less direction and supervision.

A professional who is subject to limited control and supervision may still be an employee based on other factors. Indicators that the worker may be an employee: The payer has the right to: In considering the equipment and tools owned and supplied by the worker, what is relevant is the significance of the investment in the rental or purchase of tools and equipment along with the related costs of replacement, repair, and insurance.

Ownership of the tools, however, is not always a determining factor. The employer also generally covers operating costs, which may include office expenses, employee wages and benefits, insurance premiums, and delivery and shipping costs.

Employer/Employee -

Hiring, Supervising, and Paying Assistants. If the person s for whom the services are performed hires, supervises, and pays assistants, that factor generally shows control over the workers on the job. However, if one worker hires, supervises, and pays the other assistants pursuant to a contract under which the worker agrees to provide materials and labor under which the worker is responsible only for the attainment of a result, this factor indicates an independent contractor status.

A continuing relationship between the worker and the person s for whom the services are performed indicates that an employer-employee relationship exists.

Determining the Employer/Employee Relationship - IPG-069

A continuing relationship may exist where work is performed at frequently recurring although irregular intervals. Set Hours of Work. The establishment of set hours of work by the person s for whom the services are performed is a factor indicating control. If the worker must devote substantially full-time to the business of the person s for whom the services are performed, such person s has control over the amount of time the worker spends working and impliedly restrict the worker from doing other gainful work.

An independent contractor, on the other hand, is free to work when and for whom s he chooses. The Control Test This was the first attempt to clarify the relationship between a worker and a payer.

Employer-Employee Relationships

It was set out in Regina v. The Control Test was simply assessing the presence or absence of control a manager or supervisor might or might not have over their worker. Walker, 27 L. Montreal Locomotive Works Ltd. Control in itself is not always conclusive.

MacDonald and Evans, This approach attempts to find if the service being provided by the worker is performed as an integral part of the business, or done on behalf of the business but not integrated into that business.

This "test" is best explained by an excerpt from the decision: MacDonald and Evans, [] 1 T. Making a determination for the purpose of the Canada Labour Code To help examine the issue of who is an employee or an independent contractor, it may be useful to envision a continuum.

On one extreme end of the continuum would fall a worker who is clearly an employee. For example, a person who is hired to be a mechanic, is paid by the hour and is closely supervised by a foreman, would be classified as an employee. On the other end of this continuum is a worker who will obviously be an independent contractor.

This would be a worker who has his own company and will perform work for a variety of companies. This worker is contracted for a specific task of upgrading a company's computer software, and who is paid a specified amount for the job, signs a contract for a specific time period, and is not supervised, but reports his progress to the department manager.

The points noted are not an exhaustive list. The difference is clear between the employee and the independent contractor in the example demonstrated in Appendix A. However, attempting to classify the workers in the middle of this continuum is where it becomes complicated. It is because the workers that fall in the middle of this continuum have characteristics of both an employee and an independent contractor, and are therefore not so readily classified.

Gathering of the information In order to make a decision if a worker is an employee or independent contractor, detailed information on how the relationship is structured must be gathered and assessed.

SYS 235 Attachment 2: Factors to Consider in Determining Employer-Employee Relationship

The Court first states that the level of control will always be a factor, but the central question is: Whether the worker provides his own equipment. Can the worker hire their own helpers?

determining the employer employee relationship is most

Can the worker contract out work to other contractors?