Idaho Employment Agreement with Construction Worker
Description
How to fill out Employment Agreement With Construction Worker?
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FAQ
The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (LRA) the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA), apply to employees and not independent contractors.
When you hire someone, they will be classified as either an employee, or an independent contractor. With employees, you'll have more control, but more compliance obligations. With contractors, you'll have less compliance obligations, but less control.
An employee is on a company's payroll and receives wages and benefits in exchange for following the organization's guidelines and remaining loyal. A contractor is an independent worker who has autonomy and flexibility but does not receive benefits such as health insurance and paid time off.
Contracted workers are not technically employees since they provide services on a short-term or individual project basis. Also, unlike full-time employees, contract workers do not have to be offered employment benefits by the businesses that hire them.
Simply put, there is no time limit on how long you can work for one company as a contractor. When working for a company long-term it is important to take into consideration what your role there is and how it could be perceived from a tax perspective.
Some general protections provided under the Fair Work Act 2009 extend to independent contractors and their principals. Independent contractors and principals are afforded limited workplace rights, and the right to engage in certain industrial activities.
The question of how long a contractor can work for the same company has a surprisingly simple answer. There is no maximum time limit. If a contractor and a company are both happy to continue working with each other then that's perfectly fine.
But in a strict sense, self-employed contractors do not have the rights and protections afforded to employees and workers. However, even if someone is described as being self-employed in their contract and pays tax as a self-employed person, they may in fact have 'worker' or, in some cases, 'employee' status.
This is because employees are considered the most expensive cost to any company, and the most risk. Companies address these costs by hiring long-term contractors. When engaging a professional, a contract staffing agency takes on the risk, finances the employees' benefits, and matches all taxes.
The client's HR department has certainly got the wrong end of the stick, as there is no legislation that states that contractors or freelancers gain the right to demand permanent employment after two years. Contractors like Liam are business-to-business service providers.