An independent contractor is a person or business who performs services for another person under an express or implied agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The person who hires an independent contractor is not liable to others for the acts or omissions of the independent contractor. An independent contractor is distinguished from an employee, who works regularly for an employer. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays their own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage.
There are a number of factors which to consider in making the decision whether people are employees or independent contractors. No one factor is controlling, and the characterization of the relationship by the parties is also not controlling.
One of the most important considerations is the degree of control exercised by the company over the work of the workers. An employer has the right to control an employee. It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work performed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees. Whether or not such control was exercised is not the determining factor, it is the right to control which is key.
Another factor to be considered is the connection and regularity of business between the independent contractor and the hiring party. Important factors to be considered are separate advertising, procurement of licensing, maintenance of a place of business, and supplying of tools and equipment by the independent contractor. If the service rendered is to be completed by a certain time, as opposed to an indefinite time period, a finding of an independent contractor status is more likely.
Also, an independent contractor is more likely to be subject to the risk of taking a profit or loss in the work performed. An employee is generally paid on an hourly, salary, or commission basis, whereas an independent contractor is ordinarily paid an agreed amount, or according to an agreed formula, for a given job.
Title: Guam Agreement Between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service Introduction: The Guam Agreement Between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service is a legally binding agreement that governs the relationship between a self-employed independent contractor and the owner of a mobile tire repair service. This agreement outlines the terms and conditions under which the contractor will drive the mobile tire repair truck and provide tire repair services. This detailed description will provide an overview of the agreement, its purpose, and the various types of agreements that can exist within this context. Keywords: Guam Agreement, self-employed independent contractor, mobile tire repair service, drive, tire repair, terms and conditions, relationship, legally binding, overview. 1. Purpose of the Agreement: The Guam Agreement establishes a professional understanding between the owner and the self-employed independent contractor regarding the use of the mobile tire repair truck and the provision of tire repair services to customers. It ensures a formal, legal framework to protect the rights and responsibilities of both parties involved. 2. Roles and Responsibilities: This agreement defines the specific duties and responsibilities of both the owner and the self-employed independent contractor. The owner is responsible for maintaining and providing the mobile tire repair truck, while the contractor is responsible for driving the truck, performing tire repairs, and providing excellent customer service. 3. Payment Terms and Compensation: The agreement includes detailed provisions outlining the payment structure, including the contractor's compensation for services rendered. It may specify if the contractor is paid on an hourly basis, commission basis, or through a predetermined fee structure. 4. Duration and Termination: The duration of the agreement is agreed upon by both parties and can vary depending on the specific needs of the mobile tire repair service. Termination clauses may outline conditions under which either party can terminate the agreement, such as non-compliance with terms, contractual breaches, or changes in business circumstances. 5. Liability and Insurance: To protect both parties, the agreement may include provisions regarding liability and insurance. It can specify the extent to which the owner's business insurance covers the contractor while operating the mobile tire repair truck and performing tire repairs. Types of Guam Agreements between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service: 1. Standard Guam Agreement: This is the most common type of agreement that covers the basic terms and conditions for the contractor to drive the mobile tire repair truck and perform tire repairs. 2. Exclusive Guam Agreement: An exclusive agreement grants the contractor exclusive rights to provide tire repair services for a certain period or within a defined territory. 3. Non-Exclusive Guam Agreement: In a non-exclusive agreement, the owner may engage multiple contractors to provide tire repair services, allowing flexibility and availability to cater to a wider customer base. Conclusion: The Guam Agreement between a self-employed independent contractor and the owner of a mobile tire repair service is a comprehensive and legally binding contract that outlines the terms, responsibilities, and compensation details for the contractor's role in driving the mobile tire repair truck and repairing tires. Understanding the need for such an agreement and its various types ensures a smooth working relationship between both parties involved.
