What is independent contractor law?
California Labor Code § 3353 states that an. “Independent contractor” means any person who renders service for a specified recompense for a specified result, under the control of his principal as to the result of his work only and not as to the means by which such result is accomplished.
When does an employee become an independent contractor?
A contract that designates an employee as an independent contractor, but in terms of which the employee is in a subordinate or dependent position, remains a contract of service. In other cases, employers have claimed that a person who was formerly an employee has been ‘converted’ into an independent contractor.
Who is an independent contractor under common law?
(b) any persons treated as one employer under section 4, and includes a person who is an employer; An independent contractor is someone who is NOT defined in the above section. But this doesn’t exactly clear things up nicely, so, instead, we move on to the common law definition of “independent contractor”.
How is an employee different from an independent contractor in Germany?
In Germany, the decision whether a person is an employee or an independent contractor, depends on numerous criteria. German law indicates in the Commercial Code ( Handelsgesetzbuch – HGB) that an independent contractor has the distinction of being able to freely determine his/her performance as well as his/her working time.
How are employees and independent contractors different in South Africa?
Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Employees. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment. Basic conditions.
What makes you an employee vs. an independent contractor?
An independent contractor is a worker who is responsible for delivering a certain result , and he or she decides how to achieve that result. That level of control is what distinguishes a contractor from an employee . Employees, on the other hand, are workers who do what you tell them, when you tell them and how you tell them to do it.
How is an independent contractor different from an employee?
An employee works solely for the employer, whereas the independent contractor works for several clients. Inputs like tools, materials, equipment or any other resources to perform the task are provided to the employee by the employer. On the other hand, the independent contractor uses his own resources.
Should you hire employees or use independent contractors?
In situations where you need to exercise a maximum degree of control over the worker, should you probably hire an employee. Simply put, a business cannot exercise much control over an independent contractor, and utilizing a contractor in situations where such a degree of control over the time, means, and supervision of the work may lead to a situation where you need to exercise control, but can’t.
Should I be an employee or an independent contractor?
The worker has the professional expertise or is someone who needs little supervision. The decision to hire a worker as an employee or independent contractor is done on a case-by-case basis, but you should be aware that the IRS considers a worker to be an employee unless you can prove otherwise.