Contract Betwee Advantages

1346 Words 6 Pages
The law classifies among contracts of service and contracts for services. “A contract of service means there is an employer–employee relationship; a contract for services means there is a principal–independent contractor relationship” . A series of tests have been established to distinguish the working relationship of a person to understand if they are an employee or not. The Court of Appeal located terms of written contract between an employee and an independent contractor. In the ERA the test is “…employer 's actions, and how the employer acted… a fair and reasonable employer could have done in all the circumstances at the time the dismissal or action occurred” .

The trustworthy verdict on the presentation of section 6 is the decision-making of the Supreme Court in Bryson v Three Foot Six Limited . In that decision, the Court stated: “in s 6(3)(a) ERA certainly include the written and oral terms of the contract
…show more content…
An advantage of being an independent contractor is work on demand. Meaning that when you are hiring an independent contractor they offer flexibility to the workplace. Another benefit is that they get the opportunities to work with more than one client making them versatile. A disadvantage of being an independent contractor is a risk of the contract not being renewed. Also limited benefits under the Employment Relations Act. In addition, independent contractors are usually not covered by an employer 's benefits package or workers ' compensation insurance. Independent contractors are also taxed differently than employees and are responsible for their own tax withholding, so organizations provide independent contractors with an Internal Revenue Service. There are numerous benefits that implement to employees in the form of tax credits and parental leave payments which does not concern independent

Related Documents