Table of Contents

1.0 INTRODUCTION 2

1.1 CONTRACT OF SERVICE AND CONTRACT FOR SERVICE 2

1.1.1 EMPLOYER-EMPLOYEE CONTRACT OF SERVICE ERROR! BOOKMARK NOT DEFINED.

1.1.2 CONTRACTOR-CLIENT CONTRACT FOR SERVICES ERROR! BOOKMARK NOT DEFINED.

2.0 TEST OF DETERMINING EMPLOYER-EMPLOYEE RELATION ERROR!

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2.1 CONTROL TEST ERROR! BOOKMARK NOT DEFINED.

2.2 MULTI FACTORIAL TEST ERROR! BOOKMARK NOT DEFINED.

2.3 INTREGRATION TEST ERROR! BOOKMARK NOT DEFINED.

3.0 ARBITRATION AS A METHOD OF RESOLVING INDUSTRIAL DISPUTE

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4.0 CONCLUSION ERROR! BOOKMARK NOT DEFINED.

5.0 REFERENCE ERROR! BOOKMARK NOT DEFINED.

1.0 INTRODUCTION

Employment contract starts to exist as soon as the employee commences working for the
employer and it’s enforceable by law and it can be either inform of a verbal agreement and it
doesn’t necessarily have to be in a written form. The law on the contact of employment can
include rules which can be implied for instance the right for employer to provide a safe and
health working environment. The law also includes other automatic rules like right to be paid
while on holidays as well as the right not be discriminated against unlawfully at work place.
Every employee is entitled to written statement of the main employment terms within two
months of starting to work (Moye, 2004).

The contract of employment is made as soon as one accepts the job offer and it doesn’t have
to be in a written form. When one starts working it implies that one has accepted the job on
the terms that the employer has offered even if one doesn’t know what they are. Having a
written contract between the parties helps one to cut out disputes with each other at later date
in case there is a breach of contract by either party. Breach of contract can be of a verbally
agreed nature, written term or even an implied term of contract.

In case an employer breaches the employee’s contract, the employee should be able to check
through the terms of service carefully to sure that such employment contract breach is actually
defendable and should tray other ways to resolve the dispute before one opts fro a legal action.
Other option includes the [possible mediation through bodies like the Acas or the Advisory,
conciliation and Arbitration service. If the employee can not solve the dispute with his employer
he is entitled to taking a legal action against the other party before whit a special consideration
in terms of end gains as well as the cost that is involved in the case.

1.1 CONTRACT OF SERVICE AND CONTRACT FOR SERVICE

When a problem in a work relationship results in court action the courts will establish the
existence of a contract of service/ employment before they consider the specifics of a case.
They do this by applying common-law 'employment' tests.

In investigating the legal relationship, the courts are looking to define whether one of two types
of employment contracts exists: either a 'contract of service' or a 'contract for service'. A
'contract of service' is taken to denote employment. A 'contract for service' does not involve
employment.
 Contracts of Service
 Employer-Employee relationship.
 Usually a continuous relationship.
 A duty of care owed to employees,
 as the employer
 The employer is generally liable for
the vicarious acts of employees.
 Protective legislation applies to contract.
 Wages/Salary payment method.
 Subject of contract is to carry on
continuous work.
The fundamental difference is that:
o An employee-employer contract is a contract of service
A contractor-client contract is a contract ----------- pls whatsapp me at 0173346402 for further
assistance
Contracts for Service
 Employer-Independent Contractor
relationship.
 A relationship organized around the
completion of a once-off piece of work.
 A duty of care, arising from occupiers’
liability.
 The employer is generally not liable for the
vicarious acts of independent contractors.
 In general, protective legislation does not
apply, except for the Safety, Health and
Welfare at Work Act, 1989 and the Equality
Act.
 Various methods of payment, including
lump sum per job.
 Subject of contract is once-off job