VISULE NAJELA 57865434 MRL 3702 NOVEMBER EXAM 2020
QUESTION 1
1.1 I) The Labour Relations Act 66 of 1995 and Basic Conditions of Employment Act
75 of 1997(BASIC CONDITIONS OF EMPLOYMENT ACT 75 OF 1997) define an
employee as ‘any person, excluding an independent contractor, who works for
another person or for the State and who receives, or is entitled to receive, any
remuneration and any other person who in any manner assists in carrying on or
conducting the business of an employer’.
Independent contractors are excluded from this definition.
There are tests developed by the courts and the legislative presumption as to who
is an employee in drawing this distinction:
The control test: control is an essential feature of a contract of employment. The right
to control is more extensive in the employment contract than in other types of contract,
such as the contract of an independent contractor or an agency contract.
The organisation (integration) test: this test depends of a determination of whether
a person is part and parcel of the organisation
The multiple or dominant impression test: It is often seen as the standard test
currently used by our courts and it relies on various indicators to determine whether
or not the relationship in question is one of employment. The factors, or indications,
that the court would take into consideration to obtain a dominant impression, include
the following –
• The right of supervision, in other words, whether the employer has the
right to supervise the other person, (i.e. ‘the worker’).
• The extent to which the worker depends on the employer in the
performance of duties.
• Whether the worker is allowed to work for another. Normally, someone
who is an employee in terms of an employment contract is not allowed
to work for anyone else.
• Whether the worker is required to devote a specific time to his/her work.
• Whether the worker is obliged to perform his/her duties personally.
Usually, someone working for another in terms of an employment
contract is obliged to render the services personally. In the case of an
independent contractor, it does not really matter who does the work as
long as the job gets done.
• Whether the worker is paid according to a fixed rate or by commission.
• Whether the worker provides his/her own tools and equipment.
• Whether the employer has the right to discipline the worker. The
existence of this right would normally indicate control, which, in turn,
would be indicative of an employment contract.
All the factors together create what is called a ‘dominant impression’.
1
, VISULE NAJELA 57865434 MRL 3702 NOVEMBER EXAM 2020
The courts in certain instances used a ‘productive capacity’ test.
A new presumption has been added to the LABOUR RELATIONS ACT 66 OF 1995
(section 200A) and the BASIC CONDITIONS OF EMPLOYMENT ACT 75 OF 1997
(section 83A) which provide guidelines to be utilised in ascertaining whether someone
(for instance, an applicant in a CCMA or court case) is an employee. If one or more of
the lists of factors mentioned in the section is present, the person is presumed to be
an employee. The factors are as follows:
(a) the manner in which the person works is subject to the control or direction of
another person;
(b) the person’s hours of work are subject to the control or direction of another person;
(c) in the case of a person who works for an organisation, the person forms part of that
organisation;
(d) the person has worked for that other person for an average of at least 40 hours
per month over the last three months;
(e) the person is economically dependent on the other person for whom he or she
works or renders services;
(f) the person is provided with tools of trade or work equipment by the other person;
or
(g) the person only works for or renders services to one person
We can summarise the distinction between an employee and an independent
contractor by the table below:
Employee Independent contractor
Object of contract is to render Object of contract is to perform
personal services specified work or produce specified
results
Employee must perform services Independent contractor may usually
personally perform through others
Employer may choose when to make Independent contractor must perform
use of services of employee work (or produce result) within period
fixed by contract
Contract terminates on death of Contract does not necessarily
employee terminate on the death of the
employee
Contract also terminates on expiry of Contract terminates on completion of
period of service in contract work or production of specified results
2
QUESTION 1
1.1 I) The Labour Relations Act 66 of 1995 and Basic Conditions of Employment Act
75 of 1997(BASIC CONDITIONS OF EMPLOYMENT ACT 75 OF 1997) define an
employee as ‘any person, excluding an independent contractor, who works for
another person or for the State and who receives, or is entitled to receive, any
remuneration and any other person who in any manner assists in carrying on or
conducting the business of an employer’.
Independent contractors are excluded from this definition.
There are tests developed by the courts and the legislative presumption as to who
is an employee in drawing this distinction:
The control test: control is an essential feature of a contract of employment. The right
to control is more extensive in the employment contract than in other types of contract,
such as the contract of an independent contractor or an agency contract.
The organisation (integration) test: this test depends of a determination of whether
a person is part and parcel of the organisation
The multiple or dominant impression test: It is often seen as the standard test
currently used by our courts and it relies on various indicators to determine whether
or not the relationship in question is one of employment. The factors, or indications,
that the court would take into consideration to obtain a dominant impression, include
the following –
• The right of supervision, in other words, whether the employer has the
right to supervise the other person, (i.e. ‘the worker’).
• The extent to which the worker depends on the employer in the
performance of duties.
• Whether the worker is allowed to work for another. Normally, someone
who is an employee in terms of an employment contract is not allowed
to work for anyone else.
• Whether the worker is required to devote a specific time to his/her work.
• Whether the worker is obliged to perform his/her duties personally.
Usually, someone working for another in terms of an employment
contract is obliged to render the services personally. In the case of an
independent contractor, it does not really matter who does the work as
long as the job gets done.
• Whether the worker is paid according to a fixed rate or by commission.
• Whether the worker provides his/her own tools and equipment.
• Whether the employer has the right to discipline the worker. The
existence of this right would normally indicate control, which, in turn,
would be indicative of an employment contract.
All the factors together create what is called a ‘dominant impression’.
1
, VISULE NAJELA 57865434 MRL 3702 NOVEMBER EXAM 2020
The courts in certain instances used a ‘productive capacity’ test.
A new presumption has been added to the LABOUR RELATIONS ACT 66 OF 1995
(section 200A) and the BASIC CONDITIONS OF EMPLOYMENT ACT 75 OF 1997
(section 83A) which provide guidelines to be utilised in ascertaining whether someone
(for instance, an applicant in a CCMA or court case) is an employee. If one or more of
the lists of factors mentioned in the section is present, the person is presumed to be
an employee. The factors are as follows:
(a) the manner in which the person works is subject to the control or direction of
another person;
(b) the person’s hours of work are subject to the control or direction of another person;
(c) in the case of a person who works for an organisation, the person forms part of that
organisation;
(d) the person has worked for that other person for an average of at least 40 hours
per month over the last three months;
(e) the person is economically dependent on the other person for whom he or she
works or renders services;
(f) the person is provided with tools of trade or work equipment by the other person;
or
(g) the person only works for or renders services to one person
We can summarise the distinction between an employee and an independent
contractor by the table below:
Employee Independent contractor
Object of contract is to render Object of contract is to perform
personal services specified work or produce specified
results
Employee must perform services Independent contractor may usually
personally perform through others
Employer may choose when to make Independent contractor must perform
use of services of employee work (or produce result) within period
fixed by contract
Contract terminates on death of Contract does not necessarily
employee terminate on the death of the
employee
Contract also terminates on expiry of Contract terminates on completion of
period of service in contract work or production of specified results
2
