The Employment Rights Act Of Barbados And The Text Business Law

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In order to discuss the issues involving employment contracts it is first of the utmost importance to be able to identify what constitutes as a contract of employment. Both the Employment Rights Act, 2012 of Barbados and the text Business Law, Fifth Edition (this definition is taken from s 230 of the Employment Rights Act (ERA) 1996) have stated that a contract of employment can be seen as a contract of service or apprenticeship, whether express or implied, and if expressed, whether oral or in writing. Furthermore, the employee must demonstrate continuity of employment to benefit from employment rights legislation. A contract of employment must not be mistaken for a contract for services since employment rights are only taken into consideration where an employer/employee relationship can be distinguished; only a person characterized as an employee can be subject to employment rights.

A contract of employment refers to persons who can be characterized as employees, meaning that there is a master and servant relationship whereas a contract for services refers to persons hired as individual contractors or self-employed individuals. This distinction is important as both contracts have different terms for example, taxation, under a contract of employment the employer is responsible for statutory deductions such as PAYE (Pay as you Earn) and NIS (National Insurance Scheme) but this is not the same for a self-employed individual as he has to make such payments as an individual…

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