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Criticaly examin ethe extent to which orthodox contract law principles should govern employment status in the context of sham self employment arrangements - Essay Example

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Criticaly examin ethe extent to which orthodox contract law principles should govern employment status in the context of sham self employment arrangements

A take on it would in the shallowest of arguments call it a ‘disguise’ or a ‘facade’ that has been evidently put up to hide or to conceal the real underlying factor. Lockhart J. defines it as;
“... Something that is intended to be mistaken for something else or that is not really what it purports to be. It is a spurious imitation, a counterfeit, a disguise or a false front. It is not genuine or true, but something made in imitation of something else or made to appear to be something which it is not. It is something which is false or deceptive.”
As such, sham self employment arrangements are done to disguise an individual as self employed while they are not. This could be done for a myriad of reasons. These reasons could be known to both the employee and the company or the employee could be oblivious of them; this is an unusual case though. Mostly, the employers stand to gain though at times it benefits the employees too. It is an employment strategy to defraud the authorities especially on tax related grounds. There is an arrangement to engage workers as independent contractors where the parties want to create an employment relationship disguised from the real deal with adaptations that do not genuinely reflect their intentions (Waddams, 33)
Disguising the employment status could be done in a number of ways. It happens even under written contracts where it is common knowledge to both the employee and the employer and could also happen if a worker is hired on a more or less informal basis to provide their labour, and simply assumes or is told that they are a contractor. Mostly there is interposition of an entity that contracts with the business rather than the worker in his personal capacity. This allows drafting faulty contracts due to the absence of the contractor to review the terms therein provided for (Burne, 23)
Businesses sometimes do not register their workers as employees. This benefits both the business and the workers who are treated ...Show more

Summary

To understand what effect the principles of orthodox contract laws should have on sham self employment arrangements, and to what extent, we should first understand the terminology that is used therein so as to critically analyze the topic and deduce the extent to which these…
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