ADMS2610-Session9-Ch19 - ADMS2610 Session 9 Chapter 19(pg...

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ADMS2610 Session 9 Chapter 19 (pg. 352-370) Contract of Employment - Historically o Relationship of Master/Servant Master and Servant Act of 1867 Adopted in Canada - Common Law o Viewed it as a bargain struck between Master and Servant o Not one of pure contract Nature of the Relationship - Employment Contract o Requires the essential elements of a contract - Issue: Employment relationship or not o Employee or independent contractor - Fourfold Test o (1) Ownership of tools o (2) Control o (3) Chance of profit o (4) Risk of loss o replaced the simple control test o still had limitations so they added the Organization Test - Organization Test o A test for employment based upon an examination of the services in relation to the business itself Look at services of employee Are they an integral part of the business or something adjunct or accessory to normal business - Independent Contractor – Controls: o Initiative to do work o Manner in which the work is done o Does the independent contractor employ others? Indication one is not an employee - Checklist of Employment Factors o Fourfold Test Degree of control (high) Ownership of tools (low) Chance of Profit (low) Risk of loss (low)
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o OR Overall integral part of business (high) o If these tests are not met, then the person may be an independent contractor - Significance o Employee entitled to rights under law and benefits which independent contract is not Form of the Contract - Characteristics o Need not be in writing to be enforceable o May need to be in writing under Statute of Frauds If run for a fixed term for more than one year Informal evidence is allowed to prove the contract Exchange of letters Corporation books Many contracts are verbal of indefinite hiring No requirement for a formal document Duties of the Employer - Gen eral Rule o Employers cannot contract out of e m ploym ent legislation o Most provinces h av e e m ploym ent stand ards legislation which s ets out minimu m wag es, hours of work, overtime, holiday p ay, holidays - Two forms of Law o (1) Physical Aspect h e alth and s afety
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This note was uploaded on 03/25/2011 for the course ADMS 2610 taught by Professor Joshuasera during the Winter '10 term at York University.

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ADMS2610-Session9-Ch19 - ADMS2610 Session 9 Chapter 19(pg...

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