Please note, this is a script from Episode Three of our video series, Employment Law: What to look out for in 2023, which you can access here.
Welcome to the third instalment of our series What to look out for in Employment Law in 2023. Today, we're going to be talking about Employees and Independent Contractors.
One of the topics getting a lot of coverage at the moment is the issue of employees and contractors. This is something that should be on the radar of all businesses that have workforce that are non-employees. So this could be independent contractors, consultants, agency workers performing services, or any other people performing work for your organisation who are not your employees.
The legal test for whether someone is an employee is the real nature of the relationship. Intention is relevant, but it's not determinative. That means you could engage an independent contractor under a contractor agreement and that person could still be found to be your employee at law. How the relationship operates in practise is going to be really important.
The courts have traditionally looked at four key tests when determining whether someone was an employee.
Four key tests
1. Intention of the parties
What did the contract say? And, what did the parties intend?
2. Level of control or supervision
What level of control or supervision is exercised by the business over the individual?
3. The fundamental test
Are they in business on their own account?...
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