A Contract of service or contract for service is type arrangement that designate kind of relationship between worker and organization. It is important to determine this relationship, because employment status influences on the compliance of legislation such as the Canada Pension Plan and the Income Tax Act. Contract of service is an agreement to work in return for salary, so it means that the worker is an employee. Contract for service is a business relationship and it means that the worker is self-employed individual. Information to examine worker’s employment status can be found in the Canada Revenue Agency guide. In this case the Canada Revenue Agency (CRA) applies a two-step approach. Step 1: The first step is to establish what the intent was when the worker and the payer entered into the working arrangement. Did they intend to enter into an employee-employer relationship …show more content…
(contract of service) or did they intend to enter into a business relationship (contract for service). The CRA must determine not only how the working relationship has been defined, but why it was defined that way. Step 2: The CRA then considers certain factors when determining if a contract of service or a contract for service exists.
In order to understand the working relationship and verify that the intent of the worker and the payer is reflected in the facts, they will ask a series of questions that relate to the following factors: • the level of control the payer has over the worker • whether or not the worker provides the tools and equipment • whether the worker can subcontract the work or hire assistants • the degree of financial risk taken by the worker • the degree of responsibility for investment and management held by the worker • the worker’s opportunity for profit • any other relevant factors, such as written contracts (PCL, Factors used to determine the type of contract, 1-27) The CRA guide explains each factor and shows indicators that whether the worker is an employee or self-employed individual (https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4110-employee-self-employed.html, p.6). In Tina’s case the factors are detailed as follows
Control • Tina does not have anyone overseeing her. Tools and equipment • Tina uses her own small tools and accordingly is responsible for cost of repairs Subcontracting work or Hiring Assistants • Tina hires part-time workers to assist her Financial risk • She pays the hired helpers • Tina is paid a flat amount monthly, and she does not receive any protection or benefits from the payer Responsibility for investment and management • She has capital investment, manages her staff, hires and pays individuals to help do the work Opportunity for profit • She is compensated by a flat fee and incurs expenses in carrying out the services. As a consequence, it can be determined that Tina has a contract for the service with Johnson Insurance Brokers.
The retail industry is an important indicator for the overall situation of the Canadian economy. Being one of the biggest employers, according to the latest census conducted in 2011, it was ranked first in terms of share of total employment at 11.5%, with more than 1.9 million workers, which clearly demonstrates the strength of the sector.
Third party contracts are comprised of the following: what the providers earn, the conditions of payments, required evidence of
In order to have a valid contract, there are six elements that need to be established. The following is a defined list of these elements, as well as analysis pertaining to the case at hand.
The final factor that will be used to determine if Employee A is covered under the FMLA, is...
What are the expectations of both parties? How can the companies ensure that these expectations will be met?
Human Rights, O. (2012, 05 01). Employment discrimination based on family status (fact sheet) - see more at: http://www.ohrc.on.ca/en/employment-discrimination-based-family-status-fact-sheet
Minster of Public Works. (2012) Is Working Working?: Work Laws That do a Better Job. Law Commission of Canada.
...da, "Employment Equity Act Review: A Report to the Standing Committee on Human Resources Development and the Status of Persons with Disabilities." Last modified March 3, 2003. Accessed April 5, 2012. http://www.hrsdc.gc.ca/eng/lp/lo/lswe/we/review/report/main.shtml.
Evaluate the internal control to confirm that the payroll payments are for existing employees. This test should include examining every employee’s time card as well as their personnel files. If there is an employee time card for an employee who does not have a personnel file, or if their file indicates that they are no longer an employee of the company, then that indicates that there is an issue and more investigating should be conducted.
“Service” is the process whereby a defendant is provided with a copy of an application filed to the court or other legal documentation prior to the commencement of proceedings . In some cases, actual notice is required. Actual notice occurs when documents are personally delivered to the defendant (“Personal Service”). Personal Service is a strictly constructed mechanical procedure that is generally required when effecting the service of an OP for pro...
Workforce Analysis - compares the levels of representation of the designated groups on staff to representation numbers in the general population from which the company hires and record any gaps that might exist.
The express terms , that parties put down in the contract that is in writing and stated in the contract and cannot be ignored .
will get paid for their work or labour. It is known to be one of the most common work forms in the
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.