Tag: a-typical employment

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When is an Independent Contractor actually an Employee?

Given the tough economic climate and the relatively high cost of employment, workforce flexibility becomes one of the most important considerations for any business. This is actively hampered by restrictive legislation which regulates Fixed-term and Temporary Employment and effectively makes it impossible for an employer to structure its’ business to make use of this form of employment.

An emerging trend has been the use of independent contractors, however this is not as simple as it seems. Section 200A of the Labour Relations Act (Act 66 of 1995), Assumption as to who is an Employee, sought to answer this question to a certain extent, and when read along with the Code of Good Practice, seems to favor a combination of tests, including the old Dominant Impression” test. This definition and test was created, in part following the judgement in Denel (Pty) Ltd v Gerber [2005] 9 BLLR 849 (LAC) which sought to answer this question. Read more “When is an Independent Contractor actually an Employee?”