Legal Updates

An employee who was integrate at the business of the employee may still be deemed an external contractor if other terms are met

April 18, 2016
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An employer terminated the services of an advisor and the advisor claimed to be an employee and that the services were unduly terminated.

The Labor Court held that the test for classifying a service supplier as an employee or an external contractor is the mixed classification exam the main aspect of which is the integration exam. One need check whether the service provider integrated, was he supervised, did he use tools supplied by the employer, how was the consideration paid and did he do other things in parallel to the work.

In this case, the positive aspect of the exam indeed existed as the advisor did integrate into the business and had a central role but at the negative aspect the advisor provided services to third parties against a tax invoice. The adviser was not closely supervised and was required to provide the service in person - a necessary condition for determining the existence of employer-employee relations. Compilation of all exams tip the scales toward a determination that there were no employer-employee relationship between the parties and the advisor’s services could have been terminated. Thus, the claim was denied.