Reference no: EM132279610

Analysis Report: Prepare a report analyzing your findings. The report should address each of the components of the working relationship and how each works towards or against Jon being an employee. At the end of your comparison, you will also present an analysis on the risks to your organization if you have been improperly classifying Jon as an independent contractor.

You are the Executive Director of a medium-sized Hotel. Your job to manage all contracts (employment and otherwise). The hotel is owned by a large organization with many Hotels in state. Previously, all maintenance work was being done by your Environmental Manager, but it is too time-consuming and he is unable to manage all the work. You decide that you will hire an external contractor and post an add for a “Maintenance Worker” with a rate of pay of $20/hr for an indefinite amount of time. After many applications, you select John Don for the job. John has his own company called “Maintenance ASAP” and he signs a contract with you to provide maintenance services. The tools and equipment are already available, but it is not unusual for him to bring in additional tools for special jobs. Your contract with John states that he will be there at least 4 days a week from 9-5 but he will remain on-call if there are any repairs required outside of these hours. If he is required to come in, Dan would submit an invoice and he would be paid for these additional hours. John charges HST on his invoices. At the start of each week, you provide John a list of items that need to be repaired and it is expected that they be completed by the end of the week. John manages his own tasks and uses his own expertise and experience to complete the work. Failure to provide services as contracted can result in the termination of his contract.

John works very well with the team and you have invited him to attend a work gala. At the party, you chat with your human resources representative who discovers John Don's employment relationship. She tells you that John is not an independent contractor and in fact, the signs point to him being an employee. This would pose serious risks. You decide this cannot be true and immediately investigate further.