Business Culture Relationship
Case Study 1
Types of Employment Contract
A contract of service is an agreement whereby one person agrees to employ another as an employee and the other agrees to serve his employer as an employee. Under a contract of service, the employer must contribute CPF, and provide relevant statutory benefits such as annual leave, sick leave etc. for its employees engaged.
However, a contract for services is an agreement whereby a person is engaged as an independent contractor, such as a self-employed person or vendor engaged for a fee to carry out an assignment or a project for the company. Under such a work arrangement, there is no employer-employee relationship, and the employee is not covered by the Employment Act.
Difference between employee and self-employed
If we apply multi factor test to lorry driver we can see there are several point to be consider him as self-employed 1) he had not been in supervision 2) he was not given any equipment to work with 3) he had no restriction to work with other companies 4) he manage his own financial affairs, including tax
All of above reason justify lorry driver as self-employed. Definition of the contract for service Contract for service is also called self-employment and it is based on the business to business contract between buyer and supplier. Contract for services come to end when the job/task is completed. Contract for service can also come to end if the terms of the contract are breached.
In a contract for service, there is no question of any employment involved because contract for service does not grant any employment rights and it does not constitute any relation of employment. In contract for services the contractor is considered the owner of the business and he can hire anyone to complete the task.
Damages and loss
Lori driver had contract for service with firm Thus for employer has no obligation for loss or damage to property and other losses, he have to deal own his own with farm owner
Types of Employment Contract
A contract of service is an agreement whereby one person agrees to employ another as an employee and the other agrees to serve his employer as an employee. Under a contract of service, the employer must contribute CPF, and provide relevant statutory benefits such as annual leave, sick leave etc. for its employees engaged.
However, a contract for services is an agreement whereby a person is engaged as an independent contractor, such as a self-employed person or vendor engaged for a fee to carry out an assignment or a project for the company. Under such a work arrangement, there is no employer-employee relationship, and the employee is not covered by the Employment Act.
Difference between employee and self-employed
If we apply multi factor test to lorry driver we can see there are several point to be consider him as self-employed 1) he had not been in supervision 2) he was not given any equipment to work with 3) he had no restriction to work with other companies 4) he manage his own financial affairs, including tax
All of above reason justify lorry driver as self-employed. Definition of the contract for service Contract for service is also called self-employment and it is based on the business to business contract between buyer and supplier. Contract for services come to end when the job/task is completed. Contract for service can also come to end if the terms of the contract are breached.
In a contract for service, there is no question of any employment involved because contract for service does not grant any employment rights and it does not constitute any relation of employment. In contract for services the contractor is considered the owner of the business and he can hire anyone to complete the task.
Damages and loss
Lori driver had contract for service with firm Thus for employer has no obligation for loss or damage to property and other losses, he have to deal own his own with farm owner