Question
Sanya Ltd. provides a range of services such as (a) losscontrolservices, (b) physical risk surveys and (c) engineering and computer services. Worker was hired by
Sanya Ltd. provides a range of services such as (a) losscontrolservices, (b) physical risk surveys and (c) engineering and computer services. Worker was hired by Sanya to perform surveys and property risk evaluations. Worker signed a written agreement which clearly identified him as being an independent contractor. Sanya had similar agreements with other "contractors". The agreement outlined in detail, the services which Worker was to provide to Sanya.
The following were features of the relationship:
- Morris attended at Sanya's Toronto office to perform specific tasks.
- Worker and other "contractors" were offered assignments on a fairly regular basis. and they could accept or reject an assignment as they saw fit.Assignments were put into mailboxes for the "contractors" where they picked and chose what they wanted.
- If Worker took an assignment he had to complete it within a specified time.
- Worker was paid by Sanya based on a fee schedule which was determined by Sanya. Worker submitted an invoice to Sanya once per month and was paid within a month of the date of the invoice.
- Worker was restricted from performing similar services, for any business that was in competition in any manner whatsoever with the business that Sanya carried on.
- Sanya loaned a computer to Worker.
- Worker and other"contractors"needed to have digital cameras. Sanya made the cameras available to the"contractors"at a group price of $600.00 and the Worker purchased his from Sanya.
- Sanya paid the costs of a liability insurance which covered Worker.
- Long distance phone calls made by the Worker were reimbursed to him.
- Worker was provided with business cards indicating he represented Sanya when he went to client premises.
- There was no requirement for Worker to attend company meetings but Sanya invited him to an annual meeting and to training sessions. Sanyapaid out of pocket expenses for the Worker to attend these training sessions or meetings.
- For the first few months, another inspector would review Worker's work and would point out to him things that he might have left out.
- Worker would talk to the Office Manager in the office on a daily basis. This Office Manager told him he was supposed to check in regularly with her. It Worker felt that he was not qualified to do an assignment, he would turn it back to her.
- Sometimes when Worker went out of town to work, he would rent a vehicle which he paid for himself out of his fee.
- For the first two months, Worker remained employed at an auto parts business.
- Sanya carried out qualitycontrolreviews of reports prepared by Worker. This means that they checked the reports over to make sure they were properly prepared before Sanya passed them on to the clients.
- Worker could set for himself the amount of time he worked, when he took mealtimes, rest periods, vacations, etc. If he was sick, he reported to nobody.
Using the 4 part test and the organization test, you are required to analyze the facts presented and make a reasoned determination regarding whether you believe Worker is an employee or independent contractor of Sanya.
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