20 ways to differentiate between an independent contractor and an employee

ForeignManpowerConference:IndependentContractors&Employees

20WaystoTelltheDifference

PresentedBy:

KitsonFoongLL.B(Hons.),CLP,DCC,PMP,MCJ

January14,2009(12PM‐1PM)

ForeignWorkers&theMalaysianEconomy

Conference“TakeAways”

•  Defini5ons–Contracts‘For”and‘Of’Services

•  KnowWhytheDifferenceisImportant

•  KnowHowtoDeterminetheDifference

MyGoalsToday…

a.WhyIt’sImportantto

KnowtheDifference

MyGoalToday…

b.ShowYou20Ques5ons

thatHelpYou

DeterminetheDifference

Difference Between a Contract ‘For’ and ‘Of’ Services

‘FOR’or‘OF’Services

WhyistheDifferenceImportant?

IndependentContractororEmployee:20WaystoTelltheDifference

[DrinkingfromaFirehose…]

A:FinancialControl

B:BehavorialControl

C:RelaZonshipBetweentheParZes

CommonLaw“Control”Test

#1:WhohastheRighttoInstruct:When,Where,andHowtoWork?

#2:DoYouProvideTraining?

#3:WhoCanHire,Supervise&PayforAssistants?

#4:WasthePersonHiredtoOfferServicePersonally?

#5:AretheWorker’sServicesINTEGRATEDintoDailyBusinessOperaZons?

#6:IsaConZnuingRelaZonshipIntended?

#7:WhoSetstheWorkingHours/Time?

#8:AreYouExpecZngFullTimeDevoZon?

#9:Who’sGetstoSetWorkSequences?

#10:Reports‐Frequency&Submissions?

#11:RighttoQuitWithoutIncurringLiability?

#12:HowisWorkPaidFor?

#13:CanExpenseClaimsbeReimbursed?

#14:WhoSuppliestheToolsandMaterials?

#15:DoestheWorkerSignificantlyInvestinEquipment&FaciliZes?

#16:DoestheWorkerEarnaProfitOrSufferaLoss?

#17:IsExclusivityofServiceDemanded?

#18:CantheServicebeMadeAvailabletothePublic?

#19:DoYouControlWhereS/heWorks?

#20:WhoGetstoFire?

ForeignManpowerConference:IndependentContractors&Employees

20WaystoTelltheDifference

Kitson Foong LL.B(Hons.), CLP, DCC, PMP, MCJ

kitsonfoong@gmail.com