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Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment.
The other contract (Independent contractor) is a Contract for Service, and is usually a contract where the contractor undertakes to perform a specific service or task, and upon completion of the agreed service or task, or upon production of the result agreed upon, the contractor will be paid.
The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (LRA) the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA), apply to employees and not independent contractors.
Employees are covered by the unemployment insurance law; independent contractors are not covered. If a worker is or has been "performing services for pay" for an employing unit, there is a presumption in the law that the worker is an "employee," not an independent contractor.
Are independent contractors required to have workers' comp coverage? No, but the state of Wisconsin enforces a strict, nine-part test to determine whether the person is a legitimate independent contractor.
The Labour Relations Act applies to all employers, workers, trade unions and employers' organisations.
Often Independent Contractors are completely unaware that they are not Employees as defined in South African labour legislation and therefore unprotected by labour legislation.
Independent contractors are self-employed workers who provide services for an organisation under a contract for services. Independent contractors are not employees and are typically highly skilled, providing their clients with specialist skills or additional capacity on an as needed basis.
Under the Worker's Compensation Act (Act), you must carry worker's compensation insurance if you do any one of the following: Usually employ 3 or more full-time or part-time employees. You must have insurance immediately upon employing a third person.
Under the Act, a sole proprietor who does not have any employees working in Wisconsin is not required to carry worker's compensation insurance.