...1.0 INTRODUCTION In this 21st century the distinction between an employee and an independent contractor or self employed is difficult but an imperative one. An employee may be said to be an individual employed under a contract of employment and there is existence of employment relationship, while an independent contractor of self employed are persons entering a contact for service. For instance, if I require the services of a security guard from an outsourcing company, they security guard would be an employee of the outsourcing company and under a contract of service with the company. However I am at the option of hiring a fellow that is not employed to be my security guard, in this situation he is an independent contractor and he is providing a contract for service. Employment relationship exists between an employee and employer but not with independent contractor. The employer and the employee have certain relationship that is present between the employer and the independent contractor. The differences are as follows 2.0 EMPLOYMENT PROTECTION Termination of employment There are several ways by which contract of employment can be terminated by either the employee or employer which are. 2.1Termination by Notice Notice to terminate an employment contract can be given by both the employer and the employee provided the time is reasonable and the number of notice. (s.86) [ ] it also provides the minimum period of notice to be given by the...
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...MEDIATION AND ARBITRATION IN LABOUR DISPUTES Name: Course: Tutor: Date: Arbitration and mediation are some of the employment dispute resolution (EDR) tools used by organization to solve some of the challenges facing employees or the disputes that are bound to emerge within the organization. Arbitration involved use of an unbiased third person to end a dispute. Mediation is where an independent person intervenes between disputing parties. Organizations prefer them to use the courts especially for smaller disputes (John & Arnold, 2001). The disputes may arise between the employer and employee, between the employees or even between the organization and outsiders. The two cases illustrated below help shed some light on the mediation and arbitration. Case 1: Dispute between produce manager and anchorwoman The dispute entails falling of the woman claiming that her fall resulted from a carelessly dropped banana peel. The couple threatened to sue the produce manager for the incident. The manager said that a woman would hear from the company. After analyzing the situation of the spot where the woman fell, there are doubts of whether the incident was genuine or not. The banana peel appeared untouched and furthermore; it was on top of the ribbed rubber mat. The shoes that the woman wore raises further suspicions as to what was the real cause of the fall. As such, some technicalities arise, that may make it very difficult for an organization to handle the case. From the report...
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...Situation 1: To resolve this situation alternative dispute resolution is best. Alternative resolution dispute is best known as a means of resolving a matter without having to go through the courts. Like everything else, there are steps to the process of alternative dispute resolution. “Alternative dispute resolution includes neutral evaluation, negotiation, conciliation, mediation, and arbitration.” Retrieved from www.law.cornell.edu, May 15, 2015. Neutral Evaluation is at mid-point between mediation and binding adjudication one that can stand on its own or be integrated with other dispute resolution processes much like mediation. Negotiation is best known as a discussion to reach common grounds where two or more parties agree upon the results. With conciliation and mediation there is not much that differs. In conciliation a third party listens to both sides and issues a non-binding suggested resolution. Mediation generally is a dispute between two or more people or parties. In mediation a third party or which we would refer to as the mediator, assists the parties to negotiate a settlement. The mediator must not be biased. Arbitration is a proceeding in which a dispute is resolved by an arbitrator who is impartial or unbiased to the situation. The arbitrator is whose decision the parties will take and the dispute agreed, will be final and binding. With Situation One, the best approach depends on which side we should view. The customer who fell, sounds as if she is more...
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...Employer-Employee Relations Employer-Employee Relations In the Little Lamb Scenario, individuals can see that Mary is her own boss and known as an independent contractor working of the Little Lamb Company and not one of their employees. In determining that Mary is not an employee, because Congress responded and stated that an employee is an individual who is “not classified as an independent contractor.” The National Labor Relations Act says, “The term employee shall not include any individual having a status of an independent contractor” however, it will not provide or give a definition of what constitutes independent contractors. The IRS says the following, “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done” (IRS Independent Contractor, 2013). An independent contractor is any individual who runs his or her own business. When hired by a company the company does not have to withhold federal, Social Security (FICA), state taxes or pay the individual unemployment. In Addition, the company does not have to pay the individual workers compensation insurance because the individual is an independent contractor. People know these individuals as consultants, freelance, self-employed, or business owners. If the company considered Mary an employee, she would have had to complete a trial period of employment before deemed as an integral part...
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...1028. One indicia of independent contractor (rather than employee) status is when the individual performing the services is paid based on tasks performed (rather than time spent). *a. True b. False 1029. In some cases it may be appropriate for a taxpayer to report work-related expenses by using both Form 2106 and Schedule C. *a. True b. False 1030. The IRS will issue advanced rulings as to whether a worker’s status is that of an employee or an independent contractor. *a. True b. False 1031. Jake performs services for Maude. If Maude provides Jake with a helper and tools, this is indicative of independent contractor (rather than employee) status. a. True *b. False 1032. A statutory employee is not a common law employee but is subject to income tax withholdings. a. True *b. False 1033. For tax purposes, a statutory employee is not treated the same as a common law employee. *a. True b. False 1034. If an individual is subject to the direction or control of another only to the extent of the end result but not as to the means of accomplishment, an employer-employee relationship does not exist. *a. True b. False 1035. The work-related expenses of an independent contractor will be subject to the 2%-of-AGI floor. a. True *b. False 1036. After she finishes working at her main job, Ann returns home, has dinner, then drives to her second job. Ann may deduct the mileage between her home and second job. a. True *b. False 1037. After...
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...Q.2 Reporting to John Consulting about between being an employee and Self employed. FROM MD ALMAS UDDIN WAHED FERDOUS WANG HUA Definition of an employee: An employee can be defined as a person employed under a contract of service .Essentially an employee is employed on a continuous basis to perform a series of recurring tasks, and they are subject to their employer’s instruction and control as to what task has to be performed and also method of performing it. Definition of Self employed: Self-employed individuals obtain their own work or sales and pay their own expenses. For example, a taxi driver would be classified as a self employed (independent contractor), who has a contract to provide services to his passengers. To determine whether an individual is an employee or self employed under the common law, the relationship of the employee and the business must be examined. All evidence of control and independence must be considered. Difference between An employee and self employed: An employee: * Statutory protection is only given to employee. For example the unfair dismissal act and the redundancy payment act only apply to employees. * An employee receives preferential payments upon the liquidation of a company. ...
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...Employment Law Scenario Meredith Andres Law 575 November 3, 2013 Professor Jonathon Jamieson Employment Law Scenario In managing a limited liability company (LLC), the managing team should have the ideas of the goals the company has set forth for the opening and future of the company. This includes the integrity of the management members which speaks volumes about the company they work for. Employment law is included in this ("The Fast And Easy Way To Form A Corporation Or LLC", 2013). From the time an ad is posts to the time the position is filled and after employment, the managing members of the LLC are held accountable for sustaining and maintaining the mission and vision of the company. The operation of the LLC is seen as an extension of the company’s mission and vision. The treatment and compensation extended to the employees show the value a company has in its employees. The law is in place to ensure that employers value those they employ. Employment law is something every company should review and know on the local, state, and federal level. Barbara’s Bakery, LLC are taking precautions to make sure that the company follows the employment law to the letter. In light of that, making sure that Barbara’s Bakery, LLC follows the law regarding the Fair Labor Standards Act of 1938 (FLSA) and Age Discrimination in Employment Act of 1967 (ADEA). FLSA is law put in place to established minimum wages, overtime pay requirements, and child labor laws. In regards...
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...Employment-at-Will Doctrine Zaccheus Williams James P. Laurie III LEG 500 - Law, Ethics, and Corporate Governance Employment-at-Will simply means that the employer and employee have a working arrangement where either party can terminate at any time, with or without cause and with or without notice and regardless of the manner in which wages are paid. On the surface this seems to be the way most employer or employee relationships should be. Precisely as may the employee cease labor at him or her pleasure, and, whatever be the reason, good, bad, or indifferent, leave no one a legal right to complain; so, upon the other hand, mat the employee discharge, and whatever be his reason, good, bad, or indifferent, no one has suffered a legal wrong. (Standler, 2011) The termination of an employee based upon requiring the employee to violate a state or federal Law, a state or federal Constitution, or professional regulations or codes of ethics is not allowed.(Abbyrose86, 2011). Thus creating a situation, where the employee is at the mercy of the employer for their livelihood and thus their ability to survive. This in turn creates an atmosphere of fear on behalf of the employee and thus he or she is more likely to condone whatever the employer dictates, even if it is against the individuals own ethics and beliefs. Often times the employee must put on a false persona while at work, in order to ensure they fit in so as not to place their job in jeopardy. It often is not enough that...
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...To determine whether an individual is an employee or is self-employed commonly referred to as an independent contractor; an analysis should be made of the individual's employment activity. Factors such as the following should be considered in the evaluation of the individual’s employment activity. For example we may look to see, if the individual works for many firms or clients or just work for one firm or client, if the individual's services are readily available to the public, if they determine their own work hours and schedules, or does the individual receive regular payments from one firm or from a variety of firms. All of these factors play an important role in determining who is an employee and who is an independent contractor. After reviewing Revenue Ruling 87-41 it is a little easier to determine who is an employee under the common law rules. Under these rules twenty factors have been identified in aiding the determination of an individual as an employee. Some of those factors include Instructions where the person for whom the services are performed have the right to require compliance with instructions to determine whether an individual is an employee or is self-employed no one factor should be considered as controlling, but rather all these factors should be reviewed. From a taxable income perspective, I believe it is better to be an independent contractor because all trade or business expenses are deductible for AGI, whereas, if the individual is an employee...
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...Compare and contrast being an employee and an independent contractor. Which one would you rather have as a business owner? Which one would you rather be as a worker? Why? There are many differences between the relationship of an employer and an employee, and the relationship between an organization and an independent contractor. Among the many differences these relationships have the most important when it comes to services is the compensation practices. Employees have a continual relationship with the employer as they are compensated periodically and have a somewhat regular schedule for their work. The employer in this situation has the right to determine how, when, and where the employee’s duties are preferred. On the other hand, an independent contractor is hired for a service and the client has no control or authority over how the contractor works but has a decision on whether to accept or decline the final product. As a business owner there are several considerations before making a decision with as much of a risk as the potential profit. Depending on the situation, meaning the number of hours predicted to work and the scheduling, it may be more beneficial for the company to hire an independent contractor for tax and payroll incentives. This creates a profit for the client because it does not have to be liable for FICA if the person is self-employed and does not have to pay payroll administrative costs to compensate the contractor. Keep in mind however that the IRS does have...
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...Assignment 1 Leshondra Davis Scott Levasseur Leg 100 Business Law I October 15, 2014 Situation 1: Due to the nature of the situation I would advise our leadership to seek an alternative dispute resolution through mediation. Mediation is defined as the process where “the parties agree to try to reach a solution with the assistance of a neutral third party (mediator) who helps them find a mutually satisfactory resolution.” (Managers and the Legal Environment, p.68). Mediation is less hostile and more private than litigation. Eliminating the need for lawyers, judges, and court dates, mediation has proven to be less time consuming and more cost effective than litigation. Also, with the process of litigation, the company would be required to file public documents that may contain sensitive or confidential information that can be leaked through the media. Being that this is a premises liability claim, the complainant would have to prove fault on the stores behalf. “To legally be held responsible for the injuries someone suffered from slipping or tripping and falling on someone else’s property the owner/possessor of a store, restaurant, or other business (or an employee of the business): A) Must have caused the spill, worn or torn spot, or other slippery or dangerous surface or item to be underfoot; B) Must have known of the dangerous surface but did nothing about it; or C) Should have known of the dangerous surface because a “reasonable” person taking...
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...lady was wearing high heels. The organization can easily find evidence that demonstrates that women wearing high heels have a lot of difficulties moving from one place to another. The facts involved show that there is a high possibility that the woman tripped over a ribbed rubber mat. As a result, the organization would not be liable for the injuries that she had incurred. In order to be successful in the litigation process, the organization needs to adhere to diligence. First, the legal department will have to investigate the issue. The move will enable it to understand the facts of the case and to spot if there are areas where the organization can be exposed to a judicial process. Second, the in-house attorney should study the American law in order to understand the obligations of the organization to their clients and other people who visit their premises. Third, the legal department will have to evaluate the credit of the claims describe by...
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...Contract for service EMPLOYERS & MANUFACTURERS ASSOCIATION (NORTHERN) INC 159 Khyber Pass Road Grafton, Auckland New Zealand. Private Bag 92066 Auckland 1030. Contract of service MEANING OF EMPLOYEE TESTS Control Integration Fundamental or economic reality test Independence Intention APPLICATION OF LAW BEST PRACTICE CHART OF DIFFERENCES APPENDICES: IRD CHECKLISTS Appendix 1: Control test checklist Appendix 2: Integration test checklist AdviceLine For telephone advice and assistance, call or email the EMA AdviceLine and talk to one of our employer advisors: 09 367 0909 or 0800 800 362 AdviceLine@ema.co.nz Appendix 3: Independent test checklist Appendix 4: Intention test checklist Appendix 5: Economic reality test checklist Appendix 6: Employee Checklist 2 2 3 3 3 3 4 5 5 5 6 6 6 7 8 9 9 11 12 13 14 14 A-Z of Employing is available to EMA members only, via email, or online at www.emadvice.co.nz Contact AdviceLine to obtain your password. AdviceLine is open 8am – 8pm Monday to Friday (excluding public holidays) Contracts for Services OVERVIEW 1 2 3 A contract for service contrasts with a contract of service. An employee is a person under a contract of service and a contractor is a person who enters into a contract for service. The concern with the correct classification of a relationship is usually over whether a person has been prevented from accessing rights and protections available only to employees. The Employment Relations Act 2000 does not define a contract of...
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...Queensland University of technology | Employee-Contractor Case Study | By Monil Mehta | | Word Count: 1450 | 8/21/2014 | n8911941 | 1.0 Introduction The main purpose of this report is to distinguish and provide evidence to the fact that Anne Parish, a former employee at Ace Accident Insurance in Cairns was treated unfair by her former employer. In employment relations all employees should be treated and remunerated fairly, irrespective of them being an independent contractor or an employee (Fair Work Act, 2009). In this report it shall be determined whether Anne Parish was an employee or an independent contractor to Ace Insurance Co. using the multi-factor test. Further it shall also be argued upon whether Anne was dealt fairly or not. 2.0 The Multi- Factor Test The Multi- Factor test is important because it determines the entitlements for a worker as an independent contractor or an employee. The test started to be used by the legislature and federal courts from 1990’s to determine and decide upon, if an individual or group of individuals is an employee or a contractor (Stewart, 2009). The multi-factor test takes into account certain criteria’s and facts to determine whether a person is an Employee or Independent contractor . This facts fall into 3 main category namely behavioral control, financial control and type of relationship (Megerdomian, n.d). Behavioral...
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...How is employment-at-will applied in your organization or in one with which you are familiar? Employment-at-will is defined as “an employment relationship where there is no contractual obligation to remain in the relationship; either party may terminate the relationship at any time, for any reason, as long as the reason is not prohibited by law, such as for discriminatory purpose.” (Bennett-Alexander, D. & Hartman, L. 2007). The employment-at-will is actually a concept that my current company speaks about weekly to our employees. I currently work for a staffing and recruiting firm that employs candidates in engineering, nursing, administrative, and IT roles in the state of Michigan. Discussion on this topic is weekly due to what my company’s actions are. Since we do employ candidates, we have to discuss the at-will scenario. This does not just apply to our candidates we staff out but to our recruiters and staff members as well. We are employed at the employer’s discretion and have a strict policy on our employment. If goals and matrix are not met, there is a disciplinary action. This results in counseling with team leaders and managers. The first round is verbal consult which describes what is going on. If the matrix is still not achieved, a written warning will than issued allowing the recruiter or employee to have at least 30 days to improve. After the time frame, if the matrix is not met and no movement has taken place, the employee is than let go. Within our organization...
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