Frequently Asked Questions

Q: What are the characteristics of an independent contractor?

In trying to ascertain whether or not an employee is a contractor, a useful gauge is to look at the relationship between the employer and employee with some of the following factors which may be indicative of a contractor:

·         whether a written or oral agreement exists;

·         the level of direct supervision in relation to the work undertaken;

·         evidence of a separate business.

Generally speaking, employees are deemed to be an agent of the principal employer and will be paid for the provision of labour, and as a consequence, employees will usually be engaged under a contract of service. In contrast, contractors are usually independent actors with employers having vicarious liability for the actions of a contractor, and as a consequence, contracts will usually be engaged under a contract for services.

The general rule of thumb for contractors is that such employees are usually asked to perform a particular assignment, or to produce a particular result, with payment tied with the completion of the assignment, or achieving the desired result.



Findlaw

We welcome your feedback

Hi there! We want to make this site as good as it can for you, the user. Please tell us what you would like to do differently and we will do our best to accommodate!

   
Protected by FormShield


 
 
 
We've updated our Privacy Statement, before you continue. please read our new Privacy Statement and familiarise yourself with the terms.
Feedback