What is an independent contractor in South African law?

The other contract (Independent contractor) is a Contract for Service, and is usually a contract where the contractor undertakes to perform a specific service or task, and upon completion of the agreed service or task, or upon production of the result agreed upon, the contractor will be paid.

Is an independent contractor protected in terms of Labour law?

A true independent contractor has no protection under the provisions of the Labour Relations Act and section 83A does not apply to persons who earns in excess of the amount determined by the Minister. It is for this reason that many employers will prefer to employ someone as an independent contractor.

What laws protect independent contractors?

It is important to know that independent contractors are not protected by California’s anti-discrimination laws. California’s Fair Employment and Housing Act (FEHA), however, protects independent contractors against workplace harassment. FEHA provides its own definition of an independent contractor at § 12940, subd.

Can an independent contractor claim unfair dismissal?

It is important to understand at the outset that an independent contractor does not have the same protection under employment law as does an employee. For example, the independent contractor cannot lodge an unfair dismissal dispute with the CCMA or the Bargaining Council.

Is it better to be employee or independent contractor?

An employee may be able to obtain better benefits than an independent contractor. An employee will probably not have many costs beyond commuting, business clothes and other costs of the profession. Independent contractors, however, often have office expenses and staffing costs.

How do I dismiss an independent contractor?

If your independent contractor agreement contains a provision that allows the parties to terminate the relationship at any time, revise the agreement to include a notice provision with at least some kind of a notice period required for termination of the contract.

How are employees and independent contractors different in South Africa?

Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Employees Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment. Basic conditions

What kind of laws apply to employees and independent contractors?

The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (“LRA”) the Basic Conditions of Employment Act 75 of 1997 (“BCEA”) and the Employment Equity Act 55 of 1998 (“EEA”), apply to employees and not independent contractors.

Can a contract be terminated in South Africa?

It allows for terminating the contract in a manner where the principle does not need to observe the employment laws of South Africa; and Will not bind the principle to making payment to the contractor in instances where the contractor takes annual or sick leave. The duration and time of the engagement should be agreed to.

Can a freelancer be an employee in South Africa?

As such, the contents of the Freelancer/Independent Contractor Agreement should state that the contractor is not an employee of the principle, and as such, their relationship is not subject to the employment laws of South Africa, such as the Basic Conditions of Employment Act.