labour law
Contract of employment - This refers to an agreement between the employer
and employee/workman, whereby the employee agrees to provide his
services to the employer and the employer agrees to pay for these services a
consideration called a wage or salary.
*An employment contract generally contains terms and conditions, on the
following:
● Scope of work - type of service that employee perform/ask to
● Salary and benefits
● Increments and bonuses
● Working hour
● leave
● Termination
*verbal/written*
Internal Employees
Internal employees, often referred to simply as employees, are individuals
who work directly for a company and are on its payroll. They are entitled to
various protections and benefits under labor laws.
Employer Control: Employers have significant control over how, when, and
where employees perform their work. This includes setting work hours,
providing tools and equipment, and directing work processes.
Benefits and Protections: Employees are typically entitled to benefits such
as health insurance, retirement plans, paid time off, and workers'
compensation. They are also protected by laws related to minimum wage,
overtime pay, unemployment insurance, and anti-discrimination.
Taxes: Employers are responsible for withholding federal and state income
taxes, Social Security, and Medicare from employees' paychecks. They also
contribute to unemployment insurance and workers' compensation funds.
***Contract of service****-Contract of service - the employer can dictate
terms about the manner in which work should be done.
Independent contractor
An independent contractor is a person employed to do certain work but he has
a right to exercise his own discretion as to the time and manner of doing the
work.
,Autonomy: Independent contractors have more control over how they
perform their work. They often set their own hours, use their own tools and
equipment, and can work for multiple clients simultaneously.
Contract-Based: Their relationship with the business is defined by a contract
that specifies the scope of work, payment terms, and duration of the
engagement. They are typically paid per project or on a per-hour basis without
benefits like health insurance or retirement plans.
Taxes: Independent contractors are responsible for handling their own taxes.
They must pay self-employment taxes, including both the employer and
employee portions of Social Security and Medicare, and often make estimated
tax payments throughout the year.
***A Contract for Service is an agreement between a company and an
independent contractor. It outlines the terms under which the contractor will
provide specific services to the company.
Tests to determine the nature of employment
1. Control test- * whose in the control (employee/employer)
*Worker subjected to the command of the employer(where/when ,what, how)
*Employee can't delegate the work(can't ask someone to work for him)
*Cant work in any other place he wants
2. Integration tests- * the nature of the work that an employee performs is an
integral part of the business he is an internal employee
*if it is an accessory then it is an independent(cleaning, cafeteria)
3. Economic reality test-* if the worker does his work in his own account/works
for another person who bears the p/l at the end of the day.(independent
workers)
4. Multiple tests- *Examine multiple elements of the contract (merge all other 3
* Economic independence of the preson(ultimate profit
,equipment owners)
***Best test to apply***
1.‘’Yewens v Noakes (1880) is an English tax law case which decided that a
salaried clerk was not in a master servant relationship as “a servant is a person
, who is subject to the command of his master as to the manner in which he shall do
his work.” CT
2.Performing Right Society Ltd v Mitchell and Booker (Palais de Danse) Ltd [1924],
an agreement between a band and the dance hall company that determined that
the company has the right to control over the type of music that is to be performed
by the band and how they will behave on their performance. Here, the members of
the band are said to be employees as the dance hall company had control over the
members of the band. cT
3.In Stevenson, Jordan & Harrison Ltd v Macdonald & Evans Ltd (1952), Lord
Denning decided that even though the employer does not have any detailed
control of what the employee does, a person who is integrated with others in the
organization or business is an employee. IT
4.Montreal v. Montreal Locomotive Works [1946] UKPC 44
Employees’ Provident Fund Act (No. 15 of 1958) –
● The purpose of this Act is “to establish a Provident Fund for the
benefit of certain classes of employees, and to provide for matters
connected thereto.”
● “The Commissioner of Labour shall be in charge of the general
administration of this Act.” – S4
● This Act applies to all employers and employees in covered
employment. (explained in video)
● Superannuation scheme
● Employer’s contribution (12% of total earnings of employee) +
Employee’s contribution (8% of total of earnings of employees)
The Employees’ Provident Fund (EPF) was established under the EPF Act
No.15 of 1958 (Act) as a mandatory defined contribution retirement
scheme for the private and semi-government sector employees who do not
enjoy pension benefits.
Central bank of sl- monetary board (they invest)
deadline of depositing date is end of following month
● This total monthly contribution shall be remitted to the Fund, before
the last day of the succeeding month
● Withdrawal – S23
● Private Provident Funds
* Section 27 in Part IV of the Act permitted the creation of
PPFs
*The Commissioner has power to approve a PPF
Contract of employment - This refers to an agreement between the employer
and employee/workman, whereby the employee agrees to provide his
services to the employer and the employer agrees to pay for these services a
consideration called a wage or salary.
*An employment contract generally contains terms and conditions, on the
following:
● Scope of work - type of service that employee perform/ask to
● Salary and benefits
● Increments and bonuses
● Working hour
● leave
● Termination
*verbal/written*
Internal Employees
Internal employees, often referred to simply as employees, are individuals
who work directly for a company and are on its payroll. They are entitled to
various protections and benefits under labor laws.
Employer Control: Employers have significant control over how, when, and
where employees perform their work. This includes setting work hours,
providing tools and equipment, and directing work processes.
Benefits and Protections: Employees are typically entitled to benefits such
as health insurance, retirement plans, paid time off, and workers'
compensation. They are also protected by laws related to minimum wage,
overtime pay, unemployment insurance, and anti-discrimination.
Taxes: Employers are responsible for withholding federal and state income
taxes, Social Security, and Medicare from employees' paychecks. They also
contribute to unemployment insurance and workers' compensation funds.
***Contract of service****-Contract of service - the employer can dictate
terms about the manner in which work should be done.
Independent contractor
An independent contractor is a person employed to do certain work but he has
a right to exercise his own discretion as to the time and manner of doing the
work.
,Autonomy: Independent contractors have more control over how they
perform their work. They often set their own hours, use their own tools and
equipment, and can work for multiple clients simultaneously.
Contract-Based: Their relationship with the business is defined by a contract
that specifies the scope of work, payment terms, and duration of the
engagement. They are typically paid per project or on a per-hour basis without
benefits like health insurance or retirement plans.
Taxes: Independent contractors are responsible for handling their own taxes.
They must pay self-employment taxes, including both the employer and
employee portions of Social Security and Medicare, and often make estimated
tax payments throughout the year.
***A Contract for Service is an agreement between a company and an
independent contractor. It outlines the terms under which the contractor will
provide specific services to the company.
Tests to determine the nature of employment
1. Control test- * whose in the control (employee/employer)
*Worker subjected to the command of the employer(where/when ,what, how)
*Employee can't delegate the work(can't ask someone to work for him)
*Cant work in any other place he wants
2. Integration tests- * the nature of the work that an employee performs is an
integral part of the business he is an internal employee
*if it is an accessory then it is an independent(cleaning, cafeteria)
3. Economic reality test-* if the worker does his work in his own account/works
for another person who bears the p/l at the end of the day.(independent
workers)
4. Multiple tests- *Examine multiple elements of the contract (merge all other 3
* Economic independence of the preson(ultimate profit
,equipment owners)
***Best test to apply***
1.‘’Yewens v Noakes (1880) is an English tax law case which decided that a
salaried clerk was not in a master servant relationship as “a servant is a person
, who is subject to the command of his master as to the manner in which he shall do
his work.” CT
2.Performing Right Society Ltd v Mitchell and Booker (Palais de Danse) Ltd [1924],
an agreement between a band and the dance hall company that determined that
the company has the right to control over the type of music that is to be performed
by the band and how they will behave on their performance. Here, the members of
the band are said to be employees as the dance hall company had control over the
members of the band. cT
3.In Stevenson, Jordan & Harrison Ltd v Macdonald & Evans Ltd (1952), Lord
Denning decided that even though the employer does not have any detailed
control of what the employee does, a person who is integrated with others in the
organization or business is an employee. IT
4.Montreal v. Montreal Locomotive Works [1946] UKPC 44
Employees’ Provident Fund Act (No. 15 of 1958) –
● The purpose of this Act is “to establish a Provident Fund for the
benefit of certain classes of employees, and to provide for matters
connected thereto.”
● “The Commissioner of Labour shall be in charge of the general
administration of this Act.” – S4
● This Act applies to all employers and employees in covered
employment. (explained in video)
● Superannuation scheme
● Employer’s contribution (12% of total earnings of employee) +
Employee’s contribution (8% of total of earnings of employees)
The Employees’ Provident Fund (EPF) was established under the EPF Act
No.15 of 1958 (Act) as a mandatory defined contribution retirement
scheme for the private and semi-government sector employees who do not
enjoy pension benefits.
Central bank of sl- monetary board (they invest)
deadline of depositing date is end of following month
● This total monthly contribution shall be remitted to the Fund, before
the last day of the succeeding month
● Withdrawal – S23
● Private Provident Funds
* Section 27 in Part IV of the Act permitted the creation of
PPFs
*The Commissioner has power to approve a PPF
