It is very important that you know what the difference is between employees, independent contractors, agency assignees, casuals and so on.
Not knowing the difference can cost you thousands! You could also be held liable for unfair labour practices, unfair dismissal and, on top of that, you could end up dishing out huge amounts in legal fees.
So to bring some clarity, here are five types of employees who are commonly confused with independent contractors:
1. Occasional employees/casuals
'Casuals' are those people who work less than 24 hours in any given month.
Note that South African labour law doesn't refer to the term 'casual'. It refers to 'employees who work less than 24 hours in a month'.
2. Temporary/fixed-term employees
A temporary or fixed-term employee is an employee who works for a limited duration.
In other words, the contract states:
· That the contract will expire on a specified date: or
· That the contract will end in a certain case.
3. Part-time employees
Last year, Government implemented over 70 changes to three of SA's most crucial labour Acts.
Among them were:
• When and how to issue employees with a fixed-term contract.
• Unfair discrimination and your employees' pay cheque.
• Steps you MUST take before you recruit a non-South African citizen.
• Labour brokers and the only time you can use them.
• And so many more.
How sure are you your HR department's current processes aren't a lawsuit waiting to happen?
How certain are you that one small oversight won't end up costing your company R2.7 million in fines?
How confident are you that you won't land at the CCMA defending a case for following a faulty HR process?
Don't take a chance when you don't have to.
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A part-time employee can be considered as an employee who works less than the general workforce.
4. Probationary employees
A probationary employee is one who is working on probation towards a full-time position.
Keep in mind that you mustn't treat probationers as fixed-term contract employees. In other words, you can't dismiss
them at the end of their probation period and get a fresh probationer.
5. Agency assignees
These employees include those from agencies, Temporary Employment Services (TES) and labour brokers.
So, there were are five types of employees who are commonly confused with independent contractors.
To find out more on these five employees, subscribe to the loose leaf service advertised below.
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