Arko Kumi was contracted for the delivery of chippings to Ashville Estates. The contract identified him as an “independent contractor” with agreed wages and expenses. Arko Kumi was to use his own vehicle, yet with a requirement that the vehicle be sprayed in the company colors of Ashville Estates. He was to drive the vehicle himself but under compliance with certain company rules including, the nature of vehicle repairs and maintenance.

Required:
i) Describe the type of employment Arko Kumi is engaged in. (2 marks)
ii) State TWO (2) terms and essential clauses that can be used to differentiate the various types of employment. (2 marks)
iii) Explain TWO (2) rights and duties of both the employer and the employee. (6 marks)

i) Type of Employment: Although the contract took the form of Arko Kumi being under the control of a company because his vehicle was sprayed in company colors, and he had to comply with certain company rules, the fact that he was to use his own vehicle does not place him completely under the control of the company. Mr. Arko Kumi is therefore, an independent contractor. (2 marks)

ii) Terms and Clauses to Differentiate Types of Employment:

  • Contract of Service:
    The worker (employee) is under the control of the employer: the employer tells him what to do, how to do it, and when to do it; and/or the skill of the worker/employee is an integral part of the business or work.
  • Contract for Services:
    The worker works on his own account; he is in his own person in business.

Clauses to Differentiate the Type of Employment:

  • Contract of Service:
    In a Contract of Service, (i) the income tax of the worker is deducted at source, (ii) social security deductions are made at source, (iii) the worker is entitled to benefits such as sick leave, sick pay, medical refunds, maternity leave, etc., (iv) the worker can make the employer vicariously liable for his torts, (v) the worker may have the privilege of employees’ shares in a company limited by shares, and (vi) tools are provided for work with possible allowances in their absence.
  • Contract for Services:
    The worker (i) pays his own taxes as income tax and VAT, (ii) is responsible for payment of his own social security, (iii) is responsible for his own torts, and (iv) procures his own tools for work. (2 marks)

iii) Rights and Duties of Both Employer and Employee:

Rights of the Employer:

  • Employ a worker, discipline, transfer, promote, and terminate the employment of the worker.
  • Formulate the policies, execute plans and programs to set targets.
  • Modify, extend, or cease operations.
  • Determine the type of products to make or sell and the prices of its goods and services.

Duties of the Employer:

  • Provide work and appropriate raw materials, machinery, equipment, and tools.
  • Pay the agreed remuneration at the time and place agreed on in the contract of employment or collective agreement or by custom without a deduction except as permitted by law or agreed between the employer and the worker.
  • Take practical steps to ensure that the worker is free from risk of personal injury or damage to health during and in the course of the worker’s employment or while lawfully on the employer’s premises.
  • Develop the human resources by way of training and retraining of the workers.
  • Provide and ensure the operation of an adequate procedure for disciplining the workers.
  • Furnish the worker with a copy of the worker’s contract of employment.
  • Keep open the channels of communication with the workers.
  • Protect the interests of the workers.

Rights of the Workers (Employee):

  • Work under satisfactory, safe, and healthy conditions.
  • Receive equal pay for equal work without distinction of any kind.
  • Have rest, leisure, and reasonable limitation of working hours and a period of holiday with pay as well as remuneration for public holidays.
  • Form or join a trade union.
  • Be trained and retrained for the development of skills.
  • Receive information relevant to the work of the worker.

Duties of Workers (Employees):

  • Work conscientiously in the lawfully chosen occupation.
  • Report to work regularly and punctually.
  • Enhance productivity.
  • Exercise due care in the execution of assigned work.
  • Obey lawful instructions regarding the organization and execution of the worker’s work.
  • Take reasonable care for the safety and health of fellow workers.
  • Protect the interests of the employer.
  • Take proper care of the property of the employer entrusted to the worker or under the immediate control of the worker.             (6 marks)