Book and Medical T... 1 2 75% + H Alberta (Employment Standards Officer) v. Smit The appellants operated a wholesale distribution business known as S.A.M. Distributors. They engaged Usselman and Deis as sales representatives, paying them a commission of 15 percent on sales. Usselman sold goods worth approximately $7000, but the appellants failed to deliver the goods, as the drop in the value of the dollar made filling the orders unprofitable, Accordingly, no commissions were paid either. At that point, the sales representatives claimed that minimum wages be paid pursuant to the Employment Standards Code, The issue before the Umpire was whether an employment relationship existed at all of whether the claimants were independent contractors, in which event the Employment Standards Code would not apply. The Umpire reviewed the tests that have been developed in common law for determining whether a person is an employee or an independent contractor these being the control test and the organization test. He referred to Lord Wright's enunciation of the control test in the Montreal (City) v. Montreal Locomotive Works Lid Case "It has been suggested that i fourfold test would in some cases be more appropriate, a complex wrelying () control (2) ownership of the tools. (3) chance of profit. (4 trisk of loss. Chunal itself is datamay conclusive howmany cases the question can which canshture time in shine cases possible to decide the an other words by usking whetherthe party is an ng It on for himself or Applying these pring plus the relationship between the parties to he that of employer and ti citalives did not have exclusive control of their respective stiles a verenquireil to attend sale meetings and provide an explanation if a meeting was missed. They were subjout to the duection of a sales manager. An order to pay minimum wages was upheld For nur purposes, this case ithistminus the distinction between an independent contractor and an employee or servant and how each case must be considered independently. You cannot simply say that if a person is paid by commission, the person is an independent contractor. You must look beyond that