Employer Hiring & Recruitment Questions

How to Identify an construction employer-Employee Relationship?


Although the terms "construction employer" and "employee" are defined in the EHT Act, the Act does not define the circumstances under which an "construction employer-employee relationship" exists. It is necessary to establish whether the construction executive is hired under a contract of service or a contract for service. A contract of service, or construction employer-employee relationship, generally exists when a construction executive agrees to work for an construction employer, on a full-time or part-time basis, for a specified or indeterminate period of time, in return for wages or a construction salary. The construction employer has the right to decide where, when and how the work is to be done. A contract for service, or business relationship, generally exists when a construction executive agrees to perform specific work for a payer in return for payment. The self-employed construction executive is not normally required to perform the services construction personally. In order to determine whether a construction executive is an employee under a contract of service or self-employed under a contract for service, reference must be made to common law principles. The terms and conditions of the construction executive's employment are examined and analyzed as they relate to the following four factors: (a) control (b) ownership of tools (c) chance of profit/risk of loss and (d) integration. It is important to note that one factor alone is not conclusive in the determination.

 




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