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Questions and Answers
What was the basis of the claim made by the builder’s labourer in the Ferguson case?
What was the basis of the claim made by the builder’s labourer in the Ferguson case?
- He sued for wage deductions.
- He argued he was owed legal duties as an employee. (correct)
- He sought compensation for lost commissions.
- He claimed unfair dismissal.
In Massey v Crown Life Assurance, why did the claimant's claim for unfair dismissal fail?
In Massey v Crown Life Assurance, why did the claimant's claim for unfair dismissal fail?
- He had opted for self-employment and his status was consistent with that. (correct)
- The employer provided less work than agreed upon.
- The claimant had insufficient evidence of control over his work.
- He had been employed for less than six months.
What are the key tests historically applied to determine the employment status of individuals?
What are the key tests historically applied to determine the employment status of individuals?
- Income taxation test and profit-sharing test.
- Duration of service test and benefit eligibility test.
- Control test, integration, and economic reality test. (correct)
- Employment utility test and job satisfaction test.
What did the builder’s employer in Ferguson case provide that indicated an employer-employee relationship?
What did the builder’s employer in Ferguson case provide that indicated an employer-employee relationship?
What primarily distinguishes a contract of service from a contract for services?
What primarily distinguishes a contract of service from a contract for services?
In the Mersey Docks & Harbour Board case, what was the main issue that needed to be settled?
In the Mersey Docks & Harbour Board case, what was the main issue that needed to be settled?
Which test is NOT among the three tests used to distinguish between employees and independent contractors?
Which test is NOT among the three tests used to distinguish between employees and independent contractors?
What fundamental requirement does a contract of employment have according to the content?
What fundamental requirement does a contract of employment have according to the content?
Which of the following best describes 'workers' in relation to employment status?
Which of the following best describes 'workers' in relation to employment status?
What rights do workers typically have compared to those who are employed?
What rights do workers typically have compared to those who are employed?
Which of the following was NOT a condition examined to determine if an individual is an employee?
Which of the following was NOT a condition examined to determine if an individual is an employee?
In determining whether someone is an employee or self-employed, the court's main focus is on:
In determining whether someone is an employee or self-employed, the court's main focus is on:
What did the stevedores in the Mersey Docks case do under their contract with the harbour board?
What did the stevedores in the Mersey Docks case do under their contract with the harbour board?
Which statement is true regarding the definitions of 'employee' and 'independent contractor'?
Which statement is true regarding the definitions of 'employee' and 'independent contractor'?
Which of the following would generally NOT be classified as a worker?
Which of the following would generally NOT be classified as a worker?
Which of the following options does NOT impact the classification of an individual as an employee or independent contractor?
Which of the following options does NOT impact the classification of an individual as an employee or independent contractor?
Study Notes
Contract of Service vs. Contract for Services
- Contract of Service: Employment, different rules for taxation, health and safety, contract protection, and liability.
- Contract for Services: Independent contractor, distinct rules for the above areas.
Distinguishing an Employee from an Independent Contractor
- Three key tests:
- Control test: Employer's control over how the employee performs duties.
- Integration test: Employee's integration into the employer's organization.
- Economic reality test: Employee's financial dependence on the employer.
Employee Definition
- Individuals who have entered into or work under a contract of employment.
- Contract of employment: Agreement (express/implied, oral/written) for service or apprenticeship.
Worker Definition
- Anybody who works for an employer under a contract of employment or other contract.
- They personally perform work or services, excluding truly self-employed individuals.
- Includes agency workers, short-term casual workers and some freelancers.
- Basic employment rights and protections.
Case Studies: Contract of Employment
- Ferguson v John Dawson & Partners (1976):
- Facts: Builder's laborer paid without tax deductions, working as a self-employed contractor. Employer directed tasks, provided tools, and dismissed him.
- Decision: Despite the "self-employed" arrangement, laborer was an employee under a contract of employment.
- Massey v Crown Life Assurance (1978):
- Facts: Claimant started as an employee, then transitioned to self-employment at his request. Continued same duties, but employer stopped deductions. Employer ended the arrangement, and claimant claimed unfair dismissal.
- Decision: Claimant's choice for self-employment, and alignment with that status, negated his unfair dismissal claim.
Key Point
- Courts look beyond the arrangement's form to assess the actual nature of the relationship.
Control Test Example
- Mersey Docks & Harbour Board v Coggins & Griffiths (Liverpool) (1947) :
- Facts: Stevedores (dockworkers) hired a crane and driver from the harbor board under a contract stating the driver was their employee. Driver's negligence injured a checker.
- Decision: The case explored who was the employer for vicarious liability purposes due to the driver's negligence.
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Description
This quiz explores the distinctions between a Contract of Service and a Contract for Services, focusing on employment and independent contractor definitions. Learn about the key tests for differentiating employees from independent contractors, including control, integration, and economic reality tests.
