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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 3Question 49
    Medium2 marksMultiple Choice
    Syllabus C: Employment lawSection BCorporate and Business Law

    ACCA · Question 49 · Syllabus C: Employment law

    Scenario: GreenAcres Farms engages tractor drivers. Silas works exclusively for GreenAcres, uses their tractor, and is paid a fixed weekly wage, but his contract says 'Independent Contractor'. GreenAcres recently told Silas he must work 20 extra hours a week without pay, prompting Silas to resign immediately. GreenAcres also dismissed another worker, Maya, because she joined a trade union.

    Applying the multiple (economic reality) test, what is Silas's likely employment status?

    Answer options:

    A.

    He is an independent contractor because his contract explicitly states so.

    B.

    He is an employee because there is mutuality of obligation, control, and personal service, despite the contract label.

    C.

    He is a worker, but not an employee, because he operates heavy machinery.

    D.

    He is a partner in the farming business.

    How to approach this question

    Evaluate the facts against the criteria for employment status, ignoring the contractual label.

    Full Answer

    B.He is an employee because there is mutuality of obligation, control, and personal service, despite the contract label.✓ Correct
    Courts use the multiple test (Ready Mixed Concrete) to determine status. Key factors include personal service, control, mutuality of obligation, and economic reality (who provides tools, financial risk). Silas uses their tractor, works exclusively, and gets a fixed wage. This points heavily to an employer-employee relationship. The label 'Independent Contractor' is a sham and will be ignored by the courts (Autoclenz Ltd v Belcher).

    Common mistakes

    Believing that a signed contract stating someone is self-employed is legally conclusive.
    Question 48All questionsQuestion 50

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 3

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