Income – Employment Relationship 10 marks Mathias Afu is a builder by trade. He
ID: 452218 • Letter: I
Question
Income – Employment Relationship 10 marks
Mathias Afu is a builder by trade. He works for Palmerston Buildings for the last two years and is paid based on the hours worked. He sends them an invoice when the work is completed. On occasions, Mathias does some work for other clients but his main income is derived from Palmerston Buildings. Palmerston engages Mathias in the decision making on the building projects that he is involved. He is also the project manager for most building projects. Palmerston applies strict guidelines on all staff involved on how and when the building project is completed. In addition, Mathias has been asked to attend meetings with clients as well as attending all staff functions and meetings.
Required: Assess whether Mathias is an employee or an independent contractor for Palmerston Buildings. (10 marks)
Explanation / Answer
Well, based on the readings and the information provided here, it is very much likely that Mathias is not a permanent employee for Palmerston Buildings, but an independent contractor for the very same company.
This can be said due to the fact that in the information provided, Mathias works for other companies also and at the same time for Palmerston's too. So, if someone is an employee for a specific company on permanent or temporary basis he/she can not work for another or rival company at the same time.
So, one can conclude that Mathias is not an employee for the said company.
Regards.