Rebecca is a dressmaker and operates her business from home. She wants a dedicated assistant for the business who will be immediately available when she needs their services. Accordingly, she advertised for a full-time assistant, who will live with her at her home and appointed Jasmine. Jasmine signed a contract which describes her as an independent contractor. The contract states no holiday pay or sick pay is due to her and that she is responsible for meeting all tax obligations in respect of payments made under the contract. Jasmine ’s role requires her to provide various services for the dressmaking business as directed by Rebecca on a day-to-day basis. Jasmine is required to provide her own sewing machine and pay for her own dry-cleaning bills. However, Rebecca will provide a uniform for Jasmine. She is given a key to Rebecca’s house and is under strict instructions not to allow anyone else into the house unless Rebecca grants explicit permission.
Required:
Advise Jasmine whether she would be classified as an employee or independent contractor. You must refer to case law and the relevant tests developed by the courts and the IRD in your answer.