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Jane encountered problems pertaining to contractual work relationship issues with Total Mechanic Management Services Pty Ltd (TMMS). The Common Law Tests (Also known as case law) is used to establish the following two categories.

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  • Essay length: 1095 words
  • Submitted: 24/05/2012
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University Degree Employment Law

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Based on the information provided, Jane encountered problems pertaining to contractual work relationship issues with Total Mechanic Management Services Pty Ltd (TMMS). The Common Law Tests (Also known as case law) is used to establish the following two categories.

Contract of Service relates to employees who provide labour to the employers. The employers are held accountable for vicarious liability arising from any wrongdoings from an employee's action. Employees are accorded legislative protections and statutory rights, through welfare and benefits by the employers.

Contract for Service relates to independent contractors who provide services to their clients, in the capacity of a business entity and is self-employed. Unlike Contract of Service, separate general commercial law are covered for independent contractors and they are held responsible for vicarious liability in the event of any kind negligence.

It is a challenge to differentiate and identify the scope of Jane's employment status. However, a series of control tests shall determine that aspect.

1. The Control Test consists of two elements, which are the nature, and degree of control the employer has towards the employee. Federal Commissioner of Taxation v J Walter Thompson (Aust) Pty Ltd (1944) 69 CLR 227, states that

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