Contracts on service provision may take the form of a contract of service (employment contract) or a contract for services (independent contractor/consultant agreement). Independent contractor agreements involve entities or individuals who are genuinely self-employed, not the company’s employee. When issues arise, the Courts usually look into the substance rather than the form of such agreements to determine whether or not they are in fact employment contracts masked as independent contractor agreements to enable an employer avoid its obligations. Such an investigation into substance would include an examination of the contractual provisions in addition to whether or not the level of control amounts to employment. The following is a summary of the distinction between employees and independent contractors:
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