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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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Introduction

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. ...read more.

Middle

Therefore, the Integration Test has failed to identify Jane's true nature of employment contract. 3. The Business/ Economic Reality Test distinguishes whether the worker is providing his services on his own account as a business entity or if the worker is an employee with the company. There is a need to establish whether TMMS hired Jane as an independent contractor. Market Investigations Ltd v Minister of Social Security (1969) 2 WLR 1, states the Market Investigations has detailed control over the interviewer. In relation, Jane was paid an hourly rate for the number of hours worked and was provided allowances for petrol. Although Jane is permitted to take on private call, TMMS jobs are given first priority. Therefore, Jane is depended economically for TMMS to provide enough jobs for her livelihood. Abdalla v ViewDaze Pty Ltd (2003) 122 IR 215, gave an insight and determined that Jane is not an independent contractor because she did not received any commission for her completed work, but was drawing only a fixed hourly payment. ...read more.

Conclusion

It does not justify that Jane is an independent contractor. Sham Arrangement is defined where an employer intends to conceal the true employment relationship of contract of service, to avoid the responsibility of fulfilling legal entitlements that are rightfully due to an employee. Fair Work Ombudsman (FWO) v Centennial Financial Services Pty Ltd (2010) , demonstrated that the HR manager had breached the Workplace Relation Act 1996 by not granting the employees their due entitlements. In relation, Sam had intentionally forced Jane into signing the revised contract of employment, so that he could evade the responsibility of vicarious liability and legislatives law, protecting Jane who is an employee. In conclusion, the facts have established that Jane is duly an employee employed under terms of contract of service. She will have the right to claim accident compensation from TMMS under the Workers' Compensation and Injury Management Act 1981. Reference List: Waarden N. 2011. Employment Law: An outline (2nd Edition). Australia: LexisNexis Workers' Compensation and Injury Management Act. 1981 http://www.austlii.com/au/legis/wa/consol_act/wcaima1981445/ Workplace Relations Amendment (Australian Workplace Agreements Procedures) Bill 2000 http://www.workplace.gov.au/workplace/Publications/Legislation/WRAct/ ?? ?? ?? ?? 1 ...read more.

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