An Employee and an Independent Contractor - Coursework Example

An Employee and an Independent ContractorEmployer-employee contract and contract with an independent contractor are significant and distinct types of contracts. The contracts define similarities and differences between an employee and an independent contractor and this paper seeks to explore the similarities and differences.Similarities between an employee and an independent contractor as established in formation and enforceability of their contracts that are governed by law of contract. Based on the law, a contract between an employer and both an employee and an independent contractor must satisfy essential elements of a contract for enforceability.

There must be agreement between the employer and the employee or the independent contractor and an “intention to create a legal relationship” (Gulshan and Kapoor 4). Other elements such as legality of the work to be performed, existence of consideration and contractual capacity, and free will into a contract are also common factors for enforceability of contracts between an employer and either employee or an independent contractor (Gulshan and Kapoor 4). The level of control by the employer however distinguishes between an employee and an independent contractor.

An employee operates under direct instructions from the employer while an independent contractor operates independently from an employer’s instructions. An employee also receives training on the job by the employer or senior employees of the employer while an independent contractor is employed for owned expertise. Another difference between an employee and an independent contractor is period of relationship. An employee’s contract is normally long-term and runs over many seasons while an independent contractor’s services run with the life of a contract in agreement.

An employee is also remunerated by rate while an independent contractor is paid per contracted job (Miami Dade College 1-3). Works citedGulshan, S., and Kapoor, K. Business law including company law. New Delhi: New Age International, 2008. Print. Miami Dade College. “Differences between employees and independent contractors.” Miami Dade School. N.d. Web. June 24, 2013. .