Page 19 - GA Maclachlan Tax Guide 2024

Indicator Suggests employee status Suggests independent
contractor status
Tools, Provides by employer, no Contractually/necessarily
materials, contractual requirement that provided by person
stationery, etc� person provides
Office/workshop, Provides by employer, no Contractually/necessarily
admin/ contractual requirement that provided by person
secretarial etc� person provides
Integration/ Employer’s usual business Person’s own/leased premises
Usual premises premises
Integration/ Person’s service critical/integral Person’s services are incidental
Usual business part of employer’s operations to the employer’s operations or
operations success
Integration/ Person has a job designation, Person designated by profession
Hierarchy & a position in the employer’s or trade, no position in the
organogram hierarchy hierarchy
Duration of Open ended/fixed term & Limited with regard to result,
relationship renewable, ends on death of binds business despite worker’s
worker death
Relevant Threat of Employer may dismiss on Employer in breach if it
terminates prematurely� Person
notice (LRA equity aside),
termination/
Breach of
worker may resign at will (BCEA in breach if fails to deliver
contract aside) product/service
Significant Employer finances premises, Person finances premises, tools,
investment tools, raw materials, training, etc� raw materials, training, etc�
Employee Especially if designed to reward Person not eligible for benefits
benefits loyalty
Bona fide No business expenses, travel Over-heads built into contract
expenses expenses and/or reimbursed prices� Registered under tax/
or statutory by employer� Registered with labour statutes & with trade
compliance trade/professional association professional association
Viability on Obliged to approach an Has other clients, continues
termination employment agency of labour trading� Was a labour broker or
broker to obtain new work independent contractor before
(particularly for independent this contract
business test)
Industry norms, Militate against independent Will promote independent
customs viability� Make it likely person is viability� Make it likely person
an employee is an independent contractor or
labour broker
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