WHO IS AN EMPLOYEE - PART 6

ARTICLE 6

WHO IS AN EMPLOYEE – PART 6

If you will remember, the forth indicator of how to determine if the person is an employee is:

4). the person has worked for the other person for an average of at least 40 hours per month over the last three months.

Although this is self explanatory, please don’t confuse it with the fact that a ‘casual’ worker cannot work more than 24 hours in a month. Once they work more than 24 hours, they are no longer considered ‘casual’ and are entitled to company benefits. So please watch that one.

The fifth indicator of how to determine if the person is an employee is:

5). the person is economically dependent on the other person for whom he or she works or renders services.

This one can be a real ‘nasty’! You see if the person works for you and gets 80% or more of his/her monthly income from you, not only is he/she considered an employee but you are also responsible for paying his/her statutory payments (such as PAYE/UIF etc) over to the Receiver of Revenue.

The person will not normally be economically dependent if they are running their own Businesses as they would generally have other clients too. Please understand that if a Self Employed person does only have one client, this does not automatically mean that they have entered into an employee-employer relationship as there may be other reasons that they are currently only working for one client.

Again, please don’t fall into the trap that because a part time worker is also able to work part time at another client that they too are self employed. This would not change the fact that a part time employee is just that – an employee, albeit a part time one.

This would also include a full time employee who chooses to (and is given permission to) work at another job after hours in order to improve his/her income. They too still remain employees.

Should a person be free to contract with other Companies and/or Businesses to do work for them or provide services for them, then this would be viewed as an important indicator evidencing Self Employment.

Next week, we will look at the final two indicators.