Institut Teknologi Pertama: School of Business and Management

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INSTITUT TEKNOLOGI PERTAMA

SCHOOL OF BUSINESS AND MANAGEMENT


DIPLOMA IN BUSINESS MANAGEMENT

BUSINESS LAW (TEST)

Name Id. No

:________________________ :___________________________

INSTRUCTION: ANSWER THE FOLLOWING QUESTION

In relation to Employment Law, explain the test used by the courts in deciding whether a person is an employee or independent contractor.

Necessary to distinguish between a contract of service and contract for service Court apply 3 tests: Control test Integration test Multiple test

The courts have developed several tests to decide what is a contract of service Control Test-does the employer control what the employee does, and how they do it?

Case: walker v crystal FC Facts: As a professional football player Walker claimed to be self employed. Held: he was employed under a contract of service as he was subject to the control of the master in the form of training, discipline and method of pay Integration Test-where the control test is inconclusive then it may be shown that the worker is fully integrated into the employers business

Case: Cassidy v Ministry of Health Facts: whether there was a master-servant relationship between the health authority and the surgeon. Held: the health authority in this case were the masters of people it employed on a routine basis despite the professional nature of their duties

Multiple test- where the first two tests do not give a clear indication of a workers status wider factors will be considered including:

a) Wearing of uniforms b) Provision of tools holiday/sick pay entitlements

c) Use of substitute labour d) Method of remuneration Case: RMS v Ministry of Pensions

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