Question

These question of Business Law

1. Explain how a court will determine whether a person is an employee rather than an independent contractor.

2. what is a restrictive convent? what factors defermine whether it is enforceable?

Answer 1

The court will determine whether a person is an employee rather than an independent contractor using the following logic:

· Firstly, the court will supervise whether the person is getting regular wages along with various employee benefits, and tax withheld. If the person is provided monthly wages and employee benefits, then he must be an employee because employees are paid while independent contractors tend to get paid for specific projects.

· Secondly, the court oversees whether the employer is dictating terms, and conditions to the person, then he is the employee, not an independent contractor

· Thirdly, if training, and performance development programs are arranged for a person or a group of people, they must be the employees because an organization is not liable to provide training to any independent contractor.

· Fourthly, The presence of contractual elements differentiates employees from individual contractors.

· Lastly, if the person is related to core working area of the company, he must be an employee, not an independent contractor who is not related to any core tasks.