Question

What are the 7 criteria a court will use to determine whether a worker is an independent contractor or an agent?

Answer 1

Sir, I am providing this answer is very general in nature. the law of land may provide some exceptions regarding the same so basic criteria for the same are.

> He has the right to get into a contract with other parties also.

> The company will not provide any provident fund, social security amount and any employee benefit amount whatever the name called to any government department.

> In books of accounts the expense will not be categorized as employee benefits but will be under the head commission, professional service, contractual expenses.

> In case of any deficiency of work or in case of any loss the amount of loss can be recovered from contractor or agent but it will not the case of a worker.

> The contractor or agent has the right to hire someone else for his work but in case of a worker, it is not possible.

> The payment is made to the agent or contract only in the case when work is completed or deal is sealed but work needs to pay irrespective of the completion of work.

> The payment to contractor made as per the agreement or on completion of work but workers need to pay on a periodic basis.

> The contractor needs to pay service tax and employees need to pay employment tax on their remuneration.