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Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment.
FEHA typically protects independent contractors as well as employees.
Often Independent Contractors are completely unaware that they are not Employees as defined in South African labour legislation and therefore unprotected by labour legislation.
Simply put, being an independent contractor is a way of being self-employed. Is an independent contractor self-employed? Yes. Independent contractors are self-employed who earn an income but do not work as employees.
A 1099 employee is a US self-employed worker that reports their income to the IRS on a 1099 tax form. Freelancers, gig workers, and independent contractors are all considered 1099 employees.
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.
The Labour Relations Act applies to all employers, workers, trade unions and employers' organisations.
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 other contract (Independent contractor) is a Contract for Service, and is usually a contract where the contractor undertakes to perform a specific service or task, and upon completion of the agreed service or task, or upon production of the result agreed upon, the contractor will be paid.
The worker performs work that is outside the usual course of the hiring entity's business; and. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.