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Posted on February 21st 2006 in Legal Articles

Employee or Independent Contractor??

Employee or Independent Contractor??

There is no magic formula to determine whether a worker is an employee or independent contractor, rather each case must be considered on its own unique set of circumstances. According to the Federal Court of Appeal, the total relationship of the parties must be examined. This examination is generally made using “a four-in-one test, with emphasis always retained on . . . the combined force of the whole scheme of operations.”

The test includes a consideration of the degree of control that the employer retains over the worker, whether the worker has a chance to earn a profit, whether the worker has an actual risk of loss, whether the services provided by the worker are critical to the business or whether they are merely accessory and whether the worker has been hired to achieve a particular result, rather than being hired for a period without any reference having been made to a specific result.