12 October 2011
Assignment 1 An employment contract is an agreement made between the employer and employee whom set out on the employment rights, responsibilities and duties. An employment contract is also an agreement whether in writing or verbally expressed or implied. However, an agreement is whereby a person had engaged as an Independent Contractor works under a contract for service, such as self-employed person engaged for a fee to carry out an assignment or a project for the company. Under such a work arrangement, there is no employer-employee relationship, and the employee is not covered by the Employment Act. Other factors that determine the nature of the relationship between an employer and a worker can be use under the multi factors test, though it is not a structured test that enables us to an exact classification of work relationship. Some relevant factors that are considered in this particular situation are the supplying of tools and equipment necessary for the work, whether the worker engaged in any distinct occupation or business and also worker engaged for a completion of a specific task. In this case, it relates that Jane Jones was an Independent Contractor of Total Mechanic Management Services (TMMS) commencement date as of 1st July 2009 with no contract or agreement signed. Jane was to provide her own van with no TMMS logo or signage printed and provide with all necessary tools and equipment to her clients place for mechanic repair. She was responsible for her own vehicle maintenance. Although TMMS jobs were placed as the top priority on a call by call basis, she was still permitted to attend personal jobs. Therefore, she was not categorizing under the employee after those considering points out. The substantial expense of the van and its maintenance was relevant. All the above weighty factors determine her as an independent contractor. This can be seen in the case of Australian Air Express v Langford (2005) NSWCA 96 where
References: 1) People Basics: http://thepeopleindairy.com.au/peoplebasics.htm 2) Fairwork Australia: http://www.fwa.gov.au 4