ExpertACCA · Question 49 · Employment law
Section B - Scenario 2
IronForge Ltd is a heavy manufacturing company. They engage Sarah as a welder. Sarah must wear an IronForge uniform, work set shifts from 8am to 4pm, and use IronForge's welding equipment. However, her contract explicitly states: 'Sarah is an independent contractor and is responsible for her own tax.'
Based on the multiple (economic reality) test, what is Sarah's likely employment status?
Section B - Scenario 2
IronForge Ltd is a heavy manufacturing company. They engage Sarah as a welder. Sarah must wear an IronForge uniform, work set shifts from 8am to 4pm, and use IronForge's welding equipment. However, her contract explicitly states: 'Sarah is an independent contractor and is responsible for her own tax.'
Based on the multiple (economic reality) test, what is Sarah's likely employment status?
Answer options:
She is an independent contractor, because the contract explicitly states this.
She is an employee, because the reality of the working relationship outweighs the label in the contract.
She is a worker, but not an employee, because she pays her own tax.
She is an independent contractor because welding is a specialized skill.
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