Question

Albert owns a local hardware store. For years it has been run only by him and his wife. He was able to work many hours so that they did not have to hire any employees. Now, unfortunately, Albert’s health is not good. His doctor has told him that he has to take six months off of work, at a minimum. Albert does not want to close his store so he has decided to run an ad in the local paper to invite people to apply for a job with him. He plans to hire 3 or 4 employees. He comes to see you for advice. He wants to hire them only for a six month period of time. Given that it may only be temporary, he does not want to deduct any income tax from their pay for the remittance to the government and he does not want to advise the Workers Safety and Insurance Board that he is hiring employees. He also does not want to put the contract in writing. Further, given it’s a slow time of the year and he thinks that its very ‘easy’ work to sit at a cash register in his store, he wants to start the new employees off at $12 per hour (which is less than minimum wage) and tell them to work 6 days per week at 9 hours a day. He does not want to pay overtime. Albert goes to see you, his lawyer.

1. What do you tell him about his above mentioned plans?

2. Advise him so that he may move forward, legally, with his plan.

Answer 1

1. The idea of Mr Albert to hire temporary employees to cope up the situation is good. As he wants to hire employees only for six months , the employement is in temporary basis. But some of his conditions specified in the plan doesnot meet the legal terms of employement so some changes in terms and conditions makes the plan legible and satisfying. Mr Alberts plan need some aiteration which includes that he has to firstly enter into a contract, a written contract or a fixed term contract , this clearly specifies the terms and condition , clarifies the role, responsibilities and period of employement etc. When hiring temporary workers, its best to be clear up front that the work is temporary. Temporary hiring is a easy means of hiring. Entering into contract avoid the chance of conflicts or confusions. Contract will often say how much and when the employee will be paid. Payment of IRS tax withholding rules apply to part time and temporary workers just as the regular or permanent employees. Lawyer also made him aware that even if employees are hired on temporary basis the safety and health of employees is protected by law so he has to take measures regarding it. They have the right to receive minimum wage and overtime pay. So his plan on payment of wages should be changed as it is not found legitimate.

2. The lawyer gave some advices to Mr. Albert on his plan which includes: The temporary workers just like the regular employees are protected by law dealing with harassment , discrimination and workplace health and safety. Temporary employees do not enjoy the same legal rights as permanent employees such as the business that use temporary employees is not responsible for paying unemployement insurance. Entering into written contract is must over the responsibilities, working hours and payment of wages etc. Temporary employees should fill out the required forms, that shows that the employees are legally allowed to work in the country. Payment of minimum wage and overtime pay for work are the rights of employees . Paying less than the minimum wages is violation of employees rights . Payment of IRS tax withholding rules apply to temporary workers .The temporary employees has the right to be payed fairely for all the work they do as well as to be paid on time. They must be provided with safe and healthy working conditions and also the employer should inform the workers safety and insurance board about the hiring. Making alteration in the plan as per advice makes it legally binding .

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