You need to know whether you’re an employee or a contractor because your rights and responsibilities will be very different. Show
Health and safety laws apply to employees and contractors. Definitions
There are many differences between contractors and employees that affect the rights and responsibilities of the organisation and the employee. Legal testsTo make the correct decision you must focus on the real nature of the working relationship not just the label the parties are calling it. The courts have developed some legal tests to help you tell the difference, they are:
You need to think about your situation and apply all the tests to help you to decide. No one test will give you the correct answer. If you are still unsure after you’ve applied the tests, Employment Mediation Services can help you decide the real nature of your relationship, or you should seek legal advice. If you get it wrong
Intention testWhat the parties intended the relationship to be is relevant, but it doesn’t on its own determine the true nature of their relationship. You can usually work out what the intention is from the wording in the parties’ written agreement.
Control vs independence testThe greater the control exercised over the worker’s work content, hours and methods, the more likely it is that a person is an employee. A worker with greater freedom to choose who to work for, where to work, when to work, the tools used and so on, is more likely to be a contractor.
Integration testThis test looks at whether the work performed by the person is fundamental to the employer’s business (and whether they are ‘part and parcel’ of the organisation). Usually the work performed by a contractor is only a supplementary part of the business. A person is more likely to be considered to be an employee of the organisation if the work is:
Fundamental/economic reality testThis test involves looking at the total situation of the work relationship to determine its economic reality. A contractor is a person in business on their own account.
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