ExpertMedium2 marksMultiple Choice
ACCA · Question 09 · Employment law
Section A
Marcus works as a delivery driver for an app-based food delivery platform. He provides his own bicycle, can choose his own hours, and can send a substitute to do deliveries on his behalf if he is busy. He is paid per delivery. Based on the multiple test (economic reality test), what is Marcus's likely employment status?
Section A
Marcus works as a delivery driver for an app-based food delivery platform. He provides his own bicycle, can choose his own hours, and can send a substitute to do deliveries on his behalf if he is busy. He is paid per delivery. Based on the multiple test (economic reality test), what is Marcus's likely employment status?
Answer options:
A.
An employee, because he performs work for the platform's customers.
B.
An employee, because the platform dictates the delivery fee.
C.
An independent contractor, because of the lack of mutuality of obligation and the right of substitution.
D.
A worker, because he uses his own bicycle.
How to approach this question
Analyze the key factors of the multiple test: personal service, mutuality of obligation, and control.
Full Answer
C.An independent contractor, because of the lack of mutuality of obligation and the right of substitution.✓ Correct
The multiple test looks at various factors. A genuine right of substitution (sending someone else) is fundamentally inconsistent with an employment contract, which requires personal service. Furthermore, choosing his own hours shows a lack of mutuality of obligation (the company doesn't have to provide work, and he doesn't have to accept it).
Common mistakes
Assuming all gig economy workers are legally classified as 'workers' or 'employees' without analyzing the specific contractual rights like substitution.
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