Contracts of Employment - What They Mean to You

The Difference Between Employees and Contractors
To determine whether someone who's hired by a business is a contractor or an employee, courts consider a variety of factors:
If the work is done on the company premises
Who provides the tools and resources to complete the work
Who controls the work and work product
Duration of the relationship
Skill required
Whether the hiring party has the right to assign additional projects
The hired party's discretion over how long and when they work
The method of payment
The hired party's role in hiring and paying assistants
Whether the work is part of the regular business of the hiring party
Whether the hiring party is in business
Whether or not benefits are provided
The tax treatment of the hired party
A court will examine the facts and weigh each of the above to reach a conclusion. A legal agreement that sets forth the responsibilities of the parties involved can also help determine the result.
Approaches and Obligations: Employees vs. Contractors
The chart below outlines some of the differences in the ways your business should approach employees and contractors. You should note that:
employment law is very state-specific,
the information below can vary substantially for companies who handle projects for, and/or receive funding from, the government, and
you should definitely consult with an attorney for advice on these matters in your jurisdiction.