CONTEMPORY EMPLOYMENT RELATIONS EMPLOYEE-CONTRACTOR CASE

Introduction: 148
There are a few different ways in which organisations can employ people. The two most common methods that businesses use are to employ people into the company as an employee or as a contractor. According to the IRS, under common-law rules, ‘anyone who performs services for an employer is an employee if the employer can control what will be done and how.’ On the other hand the IRS defines a contractor as ‘an individual is an independent contractor if the organization has the right to control or direct only the result of the work, not the means and methods of accomplishing the result.’ This case study will use the ‘multi factor test’ to explore and analyse the dilemmas identified in the case study. Precedent cases will be used to arrive at decision as to the employment relationship between Joseph Raphael (“the Plaintiff”) and Vincent Van Gallery (“the Defendant”).

Body: 1100 Elements of a contract
According to Lord Diplock in United Dominions Trust Ltd v Eagle Aircraft Services Ltd, “a bilateral contract is where each party undertakes to the other party to do or to refrain from doing something, and in the event of his failure to perform his undertaking; the law provides the other party with a remedy”. There are four main elements that create the backbone of a legally binding contract. The first requirement for a valid contract is an agreement, which consists of an 'offer' and an 'acceptance'. In the case study, there is a verbal offer from Vincent however there is no evidence that Joseph accepts, rather it is assumed that he has accepted the offer seeing that the commences the work.
Consideration is the second element; it is the price that is asked by the promisor in exchange for their promise. There is also information in the case study to suggest there was consideration