MGT 2359 - Assignment 1: Employee or Independent Contractor (15%)Objective of this Assignment:

You will analyze a case study and compare the working relationship between the parties from a legal perspective.

Instructions

Step 1: Read the following case study

You are the Executive Director of a Retirement Home located in Ottawa, ON. This is a medium-sized Home with 50 residents and it is your job to manage all contracts (employment and otherwise). The Home is owned by a large organization with many Homes across the province. You have noticed that the Home is getting older and is requiring more and more repairs to be done. Previously, all maintenance work was being done by your Environmental Manager, but it is too time-consuming and he is unable to manage all the work. You decide that you will hire an external contractor and post an add for a "Maintenance Worker" with a rate of pay of $20/hr for an indefinite amount of time. After many applications, you select Dan Smalls for the job. Dan has his own company called "Smalls Maintenance" and he signs a contract with you to provide maintenance services. As the Home previously did their own maintenance work, the tools and equipment are already available, but it is not unusual for him to bring in additional tools for special jobs. Your contract with Dan states that he will be there at least 4 days a week from 9-5 but he will remain on-call if there are any repairs required outside of these hours. If he is required to come in, Dan would submit an invoice and he would be paid for these additional hours. Dan charges HST on his invoices. All work is very time consuming and Dan does not have any other clients. At the start of each week, you provide Dan a list of items that need to be repaired and it is expected that they be completed by the end of the week. Dan manages his own tasks and uses his own expertise and experience to complete the work. Failure to provide services as contracted can result in the termination of his contract. If there are any issues, you provide Dan with feedback on how to improve his work. Dan is an essential component of the Home and the quality of his work in keeping the building in tip-top shape can significantly affect your profits and the ability to attract new residents.

Dan works very well with the team at your Home and you have invited him to attend the staff Christmas party. At the party, you chat with your human resources representative who discovers Dan's employment relationship. She tells you that Dan is not an independent contractor and in fact, the signs point to him being an employee. This would pose serious risks for the organization and she would like to discuss the situation with you further. You decide this cannot be true and immediately investigate further.

Step 2: Activity

Prior to your meeting, you decide to do some research and analyze whether Dan might really be an employee.

Step 3: Work

Make up a report analyzing your findings. The report should address each of the components of the working relationship and how each works towards or against Dan being an employee. At the end of your comparison, you will also present an analysis on the risks to your organization if you have been improperly classifying Dan as an independent contractor.

***Please cite any references or (the link is fine)***

***About a THOUSAND words***