Events

5. Regulation of outsourcing and contracting

31 Mar 2009

Independent contractors fall outside the scope of the LSA. However, if a purported ‘independent contractor’ is in substance an employee, then the courts will deem that the worker is covered by the LSA. In deciding whether a worker is in substance an ‘employee’, the court will examine whether the principal was empowered to decide the time, place and intensity of services provided by the worker, and the degree of control or supervision exercised over the worker. The greater the degree of control or supervision exercised by the company, the more likely it is that the court will find a deemed employment relationship. If the court finds that the worker had a great discretion as to how to perform their work, they are more likely to be an independent contractor. In this case, the relationship between the parties will be governed by the Civil Code.


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