Independent contractor or employee? The true state of affairs
THIS QUESTION has been considered in a number of countries around the world. For example, in California, certain drivers have been ruled employees despite Uber having ‘employed’ them as independent contractors. What’s the significance between the two? In the case of employees, the Basic Conditions of Employment Act and Labour Relations Act (LRA) apply, and you would have to register for the Skills Development Levy, UIF, Workman’s Compensation, SITE and PAYE, which entail continuous monetary contributions. Ending an employee’s employment is also far harder than terminating an independent contractor. The LRA ensures that certain procedures, including disciplinary hearings, are followed before an employee can be dismissed. Independent contractors on the other hand are often simply issued a notice of termination. In South Africa, the NEDLAC Code of Good Practice sets out seven factors to determine whether someone is in fact an employee. These factors apply regardless of the for...