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Michigan law requires employers to have workers' comp insurance for independent contractors. It only takes 1 employee working 35 hours or longer for 13 weeks or more to trigger this requirement. Failure to have workers' comp could result in civil and criminal penalties. Workers' comp benefits must also still be paid.
7 things you need to include in an employment contractLegal disclaimer.Job information.Compensation and benefits.Time off, sick days and vacation policy.Employee classification.The schedule and employment period.Confidentiality, privacy and responsibility.Termination, severance and survival.More items...?
For the acts of independent contractor the general rule is that the employer is not liable. There are a number of exceptions. These are the non-delegable duties. According to Winfield the question is always whether the damage is caused due to the employer's breach of duty.
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.
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.
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.
An employer is not liable for the tort of an independent contractor if he has taken care of while appointing a contractor. If a reasonable person takes due diligence and avoids every foreseen situation with care then he will not be held liable for any action of tort.
Under Michigan law, independent contractors are not entitled to workers' compensation benefits (unless they carry their own insurance coverage).
Employers should not be able to avoid liability unreasonably for the negligent acts performed by those they engage to perform work. It is a longstanding principle of the common law that an employer will be vicariously liable for the tortious acts of an employee but not for the acts of an independent contractor.
A servant is a person employed by another to do work under the direction and control of his master. As a general rule, master is liable for the tort of his servant but he is not liable for the tort of an independent contractor. It, therefore, becomes essential to distinguish between the two.