Study Unit 3
Study Unit 3
Study Unit 3
1. Why is it important?
2. What are the implications?
3. Usually look at the contract first to determine the nature of
the relationship
Independent contractor
Pete is a construction
contractor
Stephan is a tele-
marketer
Object is the rendering of personal services between Object is the production of a certain specified service or
employer and employee the production of a certain specified result
Employee renders service at the behest of employer Independent contractor is not obliged to perform work
personally unless otherwise agreed
Employer may decide whether it wishes to have Independent contractor is bound to perform specified work
employee render service or produce specified result within a specified or reasonable
time
Terminated by the death of the employee Not terminated by the death of the contractor
Terminates on completion of the agreed period Terminates on completion of the specified work or
production of the specified result
Statutory employee
1. Control test
2. Organisation test
3. Dominant impression test
4. Economic test
Pete concluded a contract with another person in 2015, in terms of which
he would personally do deliveries for the other person. In terms of the
contract the worker works for a monthly commission. The other person
allows him the freedom to determine his own working hours (although he
has to work at least 30 hours a week). The contract provides that Pete may
not work for another company during the period of his contract. The
contract between the parties further stated that Pete has the obligation to
spend all the working hours performing his prescribed work, that he has
the obligation to perform the duties given to him from time to time by the
other person in a way as required, and he should comply with the internal
policies of the business. It is expected of Pete to provide the other person
with a monthly report summarising all the deliveries made that month. A
vehicle is made available to Pete to do the deliveries.
Statutory presumption: Who is an employee?