Contract of employment and Employment relationship.doc

7 in other words from these two examples it is clear

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In other words, from these two examples, it is clear that giving orders and receiving payments are not by themselves proof of employment. An employee is different from an independent contractor. See the dicta of Denning LJ as he then was in Stevenson Jordan & Harrison v McDonnell & Evans (1952) 69 RPC 10 (Court of Appeal) where he stated that: "It is often easy to recognize a contract of service when you see it, but difficult to say where the difference lies. A ship's master, a chauffeur, and a reporter on the staff of a newspaper are all employed under a contract of service; but a ship's pilot, a taxi-man, and a newspaper contributor are employed under a contract for services. One feature which seems to run through the instances is that, under a contract of service, a man is employed as part of the business, and his work is done as an integral part of the business; whereas, under a contract for services, his work, although done for the business, is not integrated into it but is only accessory to it." What are the tests of employment? 1. The Control Test 8
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See: Yewens v Noakes (1880) L.R. 6 QBD 530, CA This is sometimes called the “what to do and how to do it” test. In other words, a person can tell another not only what job to do but how to do the job, when to do the job, where to do the job then there is the element of control. The more control that A exercises over B’s work, the more likely it is that B is an employee of A. it is then a question of the extent of power over the other person. The criticism to this test is that it is not a sufficient test when the worker was taken on because they possess a certain skill or is expected to have discretion in their work. See: Walker v Crystal Palace FC [1910] 1 KB 87 – Does the employer control the background arrangements for the work to be done? 2. the integration test Under this test, what is being considered is whether the person concerned is fully integrated into the supposed employer’s organization or institution. If a person is employed, his work is done as an integral part of the business of the organization but if one has simply been hired for a purpose, then his work is not integral to the business of the organization but is only an 9
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accessory. In other words, is the person part and parcel of the organization or institution? A criticism of this test is that it does not take into account modern work arrangements such as flexible employment arrangements or mixed contracts where one does work under both a contract of service and a contract for services? See: Stevenson Jordan and Harrison v McDonald & Evans (1952) 69 RPC 10, CA A management engineer purported to assign to publishers the copyright in a book which was based mainly on information acquired while he had been a servant and later an executive officer in the plaintiff company. Part of that information was the text of lectures delivered publicly by the author while working for the company and part was material acquired while on a particular assignment for an individual client of the company. Held, (1) the
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