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"Are 'project consultants' considered employees of my company?"

by , 13 May 2016
Recently, a subscriber of Labour Law for Managers asked:

'We're appointing employees as 'project consultants' and this raises a big question among my colleagues:

If we hired them as 'consultants', are they still employees of our company?

This is a very good question as there's a massive distinction between the two terms, one which will greatly affect the wording and layout of the employment contracts.

So keep reading to find out the answer to this question...

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Make sure your policies, forms and contracts are legally correct every time

Can you answer these questions?
  • Does your chairman cover all the necessary points when chairing a disciplinary hearing?
  • Are your employment contracts up-to-date and do they include the minimum law requirements?
  • Do you have all the relevant documentation to win your case if a dispute arises with an employee?
  • Have you given all your past employees a certificate of service?
If you didn't answer yes to all of these questions then you need to get your hands on this toolkit to make sure everything you do is legally correct or you'll land up at the CCMA.
The answer for our subscriber is…

To determine whether or not they are your employees will depend on what you expect of them…


If they are financially dependent on you,


If they fall under your control and discipline, and you regulate their hours of work, and give them instructions as to what they must do in the workplace,


If they work, or render their services, only for you, or


If they make use of your workplace's equipment, and if you provide them with company tools to perform their tasks…

Then your so-called 'project consultants' are regular employees of yours, and so you'll have to reconsider the base on which you hired them.

*To learn more on what makes someone an employee of yours, page over to Chapter E 03: Employees vs contractors in your Labour Law for Managers handbook.

Alternatively, click here to order your copy today if you don't already have one. 

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