Thus, clarifying whether someone who performs work is an independent contractor or an employee from the beginning, and treating them accordingly, can save a company from trouble later on. The default status of a worker is an employee unless specific guidelines are met, which can be determined by the ABC test. A lot of workers that fulfill gigs are often hired as independent contractors.Īs a general principle of employment law, in the United States, there is a difference between an agent and an independent contractor. Independent contractor Īn issue that arises in most companies, especially the ones that are in the gig economy, is the classification of workers. In a corporate context, an employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.
9 Globalization and employment relationsįurther information: List of largest employers, List of professions, and TradesmanĪn employee contributes labor and expertise to an endeavor of an employer or of a person conducting a business or undertaking (PCB) and is usually hired to perform specific duties which are packaged into a job.7 Models of the employment relationship.
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