Business Employment Ã¯Â¿Â½ PAGE Ã¯Â¿Â½1Ã¯Â¿Â½
Business Employment Relationships
When operating a business, the decision of when to use contactors or when to hire employees is one that has not only financial and logistical implications, but legal as well. Given the high price of legal council, careful consideration of the legal implications of the employment relationship is a financial issue as well. Indeed, the Canadian Federation of Independent Business warns that, "Failure to understand these government rules regarding independent contractors can, in some instances, result in cost increases and penalties that may be greater than the cost of hiring the contract labour in the first place" (Canada Business, 2006).
This paper describes the fictional business 'Acme Delivery Ltd.', a short-haul, light freight delivery company. After giving a brief description of the company, the paper describes the nature of the company's relationship to its workers through an examination of the essential elements of an employment relationship and by examining the difference between an employee and an independent contractor.
Acme Delivery Ltd. delivers freight in the Greater Vancouver area, using one-ton and three-ton flatbed trucks. The owner started the company as the owner-operator of a single truck, acquiring business from his many friends in the construction industry. As his business grew, the owner eventually bought more trucks, leased office space, and hired drivers along with a clerk/dispatcher. After buying his third truck, he realized that he could achieve both savings and flexibility by contracting out some work, so he stopped buying his own trucks and started bringing in owner-operated trucks instead. Now, with a fleet of seven trucks, Acme has four full-time employees, four owner-operator drivers, a part-time accountant and a part-time mechanic.
Common law holds that there is no one, firm rule determining whether a worker is...