Legal Updates

The period in which a person gave external services prior to becoming an employee may be deemed ‎part of the employment period

May 18, 2017
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A person was engaged for a number of years as an external contractor and thereafter became an employee. The employer argued that the employment period commenced as of the registration as such and not at the period of external services.

The Court held that the terms of engagement indeed changed upon becoming an employee but one need examine the external services period under the tests reviewing existence of employer-employee relationship. Thus, insofar as the employee worked as a contractor for a significant time, on daily basis, continuously, and as part of the employer's core business, the Court would tend to recognize the person as an employee even where the parties agreed that her engagement would be as an external contractor. Thus, the Court held that the employee was employed as of the day she began working as an external contractor.